Loan Modification Attorneys

Guiding You Toward the Right Legal Option to Save Your Home

If you’re realizing your financial situation no longer allows you to stay on top of your mortgage payments, you might be considering applying for a loan modification in an effort to avoid foreclosure. This is among the most popular ways for homeowners to save their home, but it’s not the only one, so it’s best to talk to a loan modification lawyer before going down this path.

At Atlas Consumer Law, we understand there may be many reasons you’ve fallen behind on your mortgage payments. Whether your loan modification needs are due to a temporary setback, such as unemployment, illness, or another matter, we can help you obtain the debt solution you need to keep working toward your short-term and long-term goals. Call us today to discuss your options with caring lawyers during a free consultation.

 What Is a Loan Modification?

A loan modification is one of a few ways to keep your house when you’re having trouble affording the payments. This process involves modifying one or more mortgage terms in order to reduce the monthly payments. The following are some examples of loan modifications that may be right for you:

• Extending the length of the mortgage loan
• Reducing the interest rate
• Decreasing the principal balance of the loan
• Switching from an adjustable-rate mortgage to a fixed-rate mortgage

Skilled loan modification lawyers can review your financial situation and mortgage loan terms to determine what modifications would be best for you. They’ll also consider whether requesting a loan modification is the right choice for you in general, as this depends on your circumstances.

For instance, if you need immediate relief because you’re already behind on your payments and are now facing foreclosure, modifying your loan may be the best option. Similarly, if you have a low credit score or cannot provide proof of income – making you ineligible for alternatives to loan modifications – changing the terms of your loan may be the right choice for you.

If this is the case, you can reap the benefits of the mortgage modification process. These include the ability to prevent foreclosure due to lower monthly payments and the chance to keep the same mortgage loan, saving you time and money compared to getting a new loan altogether.

If you like the idea of lowering your mortgage payments so you can keep your house despite temporary financial hardship, contact our Chicago law firm to discuss the mortgage modification process. A skilled loan modification lawyer will carefully review your financial situation to determine if you’re a good candidate. They will then assist you with the loan modification application to improve your chance of getting the outcome you want. Call our law firm today to get started.

What Are the Potential Disadvantages of a Loan Modification?

While mortgage loan modifications can seem tempting, homeowners should be aware that such modifications have the potential to actually do more harm than good in some cases. To help you understand, our Chicago loan modification lawyers have listed some possible disadvantages of this option below:

• A negative effect on your credit score:  A loan modification has the potential to have little or no effect on a borrower’s credit score. In fact, the report may only show that the loan was modified, depending on how the lender reports the mortgage modification to the credit bureau. However, it is essential to note that if you missed payments before modifying the loan – which is common – these missed payments will still affect your credit score negatively.
• Processing expenses to pay:  Often, borrowers looking to save their home from foreclosure proceedings find that there are costly fees involved with a loan modification. In most cases, the lender is able to add these fees to the principal balance of the loan, but this is not always the case. Late charges and other fees incurred during the mortgage modification process will also need to be paid, so be prepared to budget for these extra expenses.
• The possibility of losing the home anyway: Because loan modifications are designed to help homeowners facing temporary hardships, there is an expectation that the borrower will move past the difficult financial situation and resume regular mortgage payments as they had before the hardship. However, many homeowners find that after moving through the modification process, they are back in the position of being unable to make payments. In many cases, this leaves homeowner borrowers in the same position, which is the potential for foreclosure due to mortgage payment delinquency.

So, while a loan modification may work well for some homeowners, it’s not always the best choice, especially if you have other options available to you to save your house. Fortunately, an Illinois loan modification lawyer can go over the details you need to know before deciding on the right choice for you and your family.

At Atlas Consumer Law, we know that each person’s situation is unique, which is why we take the time to understand each case thoroughly. When you choose to work with our legal team, you can rest easier knowing we are professionals and will work diligently to obtain a successful outcome. Do not wait to get the help you need. Allow us to find a solution for you today.

What Other Debt Solution Strategies May Be Right for You?

Now that you know what a loan modification program involves and what its pros and cons are, you can compare it to other solutions available to you. After all, while many banks offer loan modification programs to homeowners, we urge you to think twice before taking this route since they often end up doing more harm than good for homeowners facing financial hardships. There may be other options that work better for your financial circumstances.

Refinancing Your Loan

Refinancing your mortgage loan may be a better choice if you need to lower your monthly mortgage payments before you get behind on them. When you refinance your loan, you agree to open a new loan with different terms to help you achieve certain goals. If your main goal is to save money on your monthly mortgage payments due to financial hardship, you might consider extending the length of the loan, lowering the interest rate, or switching the type of loan you have.

Like loan modification programs, refinancing has pros and cons to consider before starting this process. The main advantages are that refinancing can lower your payments within months of closing on the loan and doesn’t require you to miss any payments before you’re eligible. Additionally, if you have a lot of equity in the house, a cash-out refinance lets you pull out that money to use how you want, which is helpful if you have temporary financial difficulties.

It’s important to also consider the downsides of refinancing your loan. To start, you must have good credit and be able to show proof of sufficient income for the lender to approve your application. So, if a sudden job loss caused you to pay your mortgage late, you might not qualify for this process. In addition, refinancing costs money and can take weeks or even months to complete. It can also lead to more debt in the long run, since you could pay more in interest if you extend the payment term in order to reduce your monthly payments.

Filing for Bankruptcy

An Illinois attorney can help you decide if you’d benefit from refinancing, completing a mortgage loan modification, or choosing a different way to reduce your mortgage payments every month. After all, these are just two of the options available to you. Another possible choice is to declare bankruptcy, as this will immediately stop foreclosure proceedings as your case gets started. In many cases, you can initiate a mortgage loan modification as part of the legal process in bankruptcy court, which a skilled mortgage loan modification lawyer can guide you through.

If you’re considering bankruptcy as a way to resolve your financial hardship, you should contact a trusted Chicago law firm for legal assistance. A foreclosure attorney can help decide whether Chapter 13 or Chapter 7 bankruptcy is right for you, depending on your financial circumstances. In most cases, if you want to keep your house, Chapter 13 is the preferred type of bankruptcy. It involves creating a repayment plan for your debts, which is often followed by a mortgage loan modification to avoid the foreclosure process. An experienced mortgage loan modification attorney who has handled bankruptcies for clients can guide you through this process and answer all your questions along the way, so contact Atlas Law Center today to learn more.

When you align yourself with a Chicago law firm such as ours, you will have the chance to discover several options to help you save your home. These can include a mortgage loan modification, refinancing, and bankruptcy, to name a few. Working with a skilled loan modification lawyer from our law firm can help you make an informed decision and give you a higher chance of securing the positive outcome you desire as you do everything possible to keep your home.

We’re proud to say our Chicago loan modification attorneys have first-hand knowledge of the loan modification process. Additionally, our negotiation skills can prove to be invaluable when dealing with banks and lenders, so call us today for a free consultation.

How Can Chicago Loan Modification Attorneys Help You?

If you’re being harassed by creditors and have even been threatened with foreclosure proceedings, it’s crucial to put a stop to this by seeking help from a trusted Illinois mortgage loan modification attorney. When you come to our law firm for legal advice during a financial hardship, we’ll find ways to shield you from creditor harassment, foreclosure proceedings, and negative credit reporting after debt discharge.

We’ve spent years providing Illinois clients with assistance through everything from bankruptcy to the loan modification process, so you can count on us to help you through current financial issues and find ways to prevent future financial hardships. We are proud of our firm’s A+ Rating with the Better Business Bureau, which serves as a testament to the kind of representation we provide to our clients.

By working with a Chicago loan modification attorney from our law firm, you may benefit from:

• Creative and innovative legal strategies for every case
• Passionate and thorough legal guidance
• Aggressive litigation skills as we fight for clients in the Illinois court system

When you contact our law firm, we will carefully review the details of your case to determine whether the loan modification process is the right form of debt relief for you. In some instances, we have helped clients obtain a positive outcome through bankruptcy or a combination of bankruptcy and a loan modification request to lenders.

Regardless of your specific circumstances, we will identify and implement a debt solution strategy that is suitable for your case and will allow you to remain on top of your mortgage payments. If you’re interested in learning more about how we can help you, call 331-321-4748 today to speak with a compassionate loan modification attorney.