Loan Modifications in L.A.
The process of a loan modification in Los Angeles involves turning a troubled mortgage loan that the homeowner is having difficulty paying into a good loan that the homeowner can afford to repay to the lender. The primary goal of a loan modification is to renegotiate the terms of a mortgage loan in order to help homeowners struggling with a financial hardship to maintain their home and make their mortgage payments more affordable. If you are having a hard time making your mortgage payments each month, or if you owe more on your mortgage than your home is worth, you are not alone. Homeowners in Los Angeles and across Southern California are struggling to stay current on their mortgage and protect their property from foreclosure, and our legal team is here to help. If you find yourself in this situation, losing your home to foreclosure may seem like a foregone conclusion, but that is not necessarily the case. Contact our Los Angeles foreclosure defense attorneys at Resnik Hayes Moradi LLP today to find out if you qualify for a foreclosure alternative like a loan modification.
Skilled Los Angeles Loan Modification Attorneys
If you have fallen behind on your mortgage payments and you are now facing foreclosure, keeping your property can be difficult, but it’s not impossible, especially with the guidance of an experienced attorney who can evaluate your financial situation and advise you of every possible option available to you. With our Los Angeles loan modification attorneys on your side, you can ensure that your loan modification application is completed correctly, that your financial hardship is accurately documented, and that the new terms of your mortgage loan encourage long-term debt relief. At Resnik Hayes Moradi LLP, our lawyers have the knowledge and expertise necessary to negotiate with your lender and prevent the lender from taking advantage of your lack of experience with the process of home loan modification.
If you have been wrongfully denied a mortgage loan modification in Los Angeles or the surrounding area, we can review your case and help you file a lawsuit against the lender that denied your request. In many cases, simply having an experienced attorney representing you gives you the leverage you need to reach an equitable agreement with the lender. We know how much you have sacrificed and how hard you have worked to provide your family with a safe and comfortable home, and we will do everything in our power to help you keep your home and avoid foreclosure, whether that means obtaining a loan modification or pursuing some other alternative to foreclosure. With our help, you can reduce your monthly payments to a more manageable amount, so you don’t end up defaulting on your mortgage loan and losing your home.
What is a Loan Modification?
A loan modification is one method homeowners in Los Angeles who can’t afford to pay their mortgage can use to avoid foreclosure and remain in their home. Simply put, a loan modification is a change in the terms of a borrower’s existing mortgage loan, typically characterized by a reduction in the interest rate or a longer term for the loan. Any change made to the terms of a loan is technically considered a loan modification, but with the mortgage loan crisis affecting homeowners across the country, the term “loan modification” has come to primarily apply to borrowers who have fallen behind on their mortgage payments. The most common types of Los Angeles mortgage loan modifications feature changes to the loan’s outstanding principal, interest rate and/or monthly payment, intended to make the borrower’s mortgage payments more manageable. By obtaining a mortgage loan modification, homeowners can achieve more favorable terms that temporarily or permanently lower their monthly payments, possibly saving them hundreds or even thousands of dollars per month.
The Los Angeles Loan Modification Process
Our seasoned attorneys have a great deal of experience negotiating loan modifications for homeowners in Los Angeles and the surrounding area, and we will guide you through the process of applying for and obtaining a mortgage loan modification, from beginning to end. Homeowners generally have a better chance of obtaining a loan modification under the following circumstances:
- Their existing mortgage has a high-interest rate
- They have an adjustable-rate mortgage
- They are experiencing a financial hardship
- The outstanding balance on their mortgage loan is more than the value of the property
Once you have been approved for a loan modification, we will negotiate with your lender to ensure that the terms of your new mortgage agreement are favorable and affordable, based on your income, expenses and other debts. With our skilled legal team in your corner, you can make your mortgage payments more manageable through loan modification and achieve true long-lasting debt relief. If for any reason you aren’t eligible for a loan modification, we won’t be deterred. There are a number of other foreclosure alternatives available to California homeowners, and we will work with you to find the best possible debt relief solution for your financial situation.
Benefits of Mortgage Loan Modification
Most homeowners pursuing loan modification in Los Angeles do so because they have either fallen behind on their mortgage payments or recently defaulted on their mortgage loan and are facing imminent foreclosure. Loan modification benefits the homeowner, or borrower, in this situation because, by changing the terms of the mortgage loan, the borrower can reduce his or her principal and/or interest and pay less each month, thereby making the mortgage payments more manageable. It also benefits the lender because, as an alternative to foreclosure or the borrower’s continued non-payment, loan modification generally means the lender will receive the maximum payment possible and avoid the costly, time-consuming foreclosure process.
Is Loan Modification Right for Me?
Suffering from a financial hardship that prevents you from keeping up with your mortgage payments can be emotionally challenging and exhausting, but by finding a workable solution to one of your most significant financial obligations, you may be able to finally find some relief. With a mortgage loan modification, you can potentially:
- Avoid foreclosure,
- Lower your interest rate,
- Reduce the principal balance on your mortgage,
- Keep your home,
- Have your late fees waived,
- Extend the life of your mortgage loan, and/or
- Lower your monthly payments.
It can be difficult to know if modifying your mortgage loan is the right move for your particular financial situation, especially if you aren’t familiar with the terms of your existing loan or the state and federal laws pertaining to foreclosure, loan modification, and other foreclosure alternatives. By contacting a qualified foreclosure defense attorney with experience handling loan modifications and other anti-foreclosure cases in Southern California, you can quickly learn whether this process is right for you.
California Homeowner Bill of Rights
The state of California has a law in place known as the Homeowner Bill of Rights, which provides important protections for homeowners involved in the loan modification process and prohibits certain duplicitous actions by creditors. For instance, under this law, lenders in California are barred from taking steps to foreclose on a home while simultaneously negotiating with the borrower on a loan modification, an illegal process known as “dual tracking.” In the past, modifying a mortgage loan and avoiding foreclosure meant a great deal of work and aggravation on the borrower’s part with no promise of a positive outcome, but with the housing crisis affecting homeowners across the country, the federal government is now encouraging lenders to approve mortgage loan modifications for troubled homeowners who are having a hard time staying current on their mortgage due to a financial hardship. The loan modification process can still be frustrating, and many lenders are still reluctant to approve a loan modification request, which is why we always recommend working with a trusted Los Angeles loan modification attorney who can inform you of your legal rights and options. If you requested a loan modification in Los Angeles or the surrounding area and your request was denied, you may still be eligible for a modification of your mortgage loan, and our attorneys can help.
How to Stop a Foreclosure in Los Angeles
Facing foreclosure is a frightening prospect for any homeowner, and most homeowners assume that once they have missed several mortgage payments or defaulted on their mortgage loan, there is nothing they can do to prevent the lender from pursuing a foreclosure. On the contrary, homeowners who are having a hard time keeping up with their mortgage payments have the power to stop a foreclosure, especially if they have an experienced foreclosure defense attorney on their side. Even if the foreclosure sale has already been scheduled, there are steps you can take to stop the foreclosure and protect your home. A loan modification is one alternative to foreclosure that homeowners in Los Angeles can pursue and another foreclosure alternative is the process of bankruptcy. A Chapter 7 bankruptcy filing can eliminate many or all unsecured debts, which can free up some cash to put towards your mortgage payments, or a Chapter 13 bankruptcy filing can restructure your debts into an affordable repayment plan that allows you to catch up on past-due mortgage payments and pay back your outstanding debts over time. Both Chapter 7 and Chapter 13 bankruptcy come with an automatic stay, which acts as an injunction that immediately stops most collection actions by creditors, including pending foreclosures.
How Our Attorneys Can Help
Many homeowners in Los Angeles end up falling behind on their mortgage payments because of unexpected circumstances that can cause financial insecurity, such as job loss, a medical emergency or the loss of a loved one, and it is the top priority of our attorneys at Resnik Hayes Moradi LLP to help homeowners in financial distress find an alternative to foreclosure so they can keep their homes. A mortgage loan modification can provide significant relief for Los Angeles homeowners struggling with financial hardship, but the process of applying for and obtaining a loan modification can be long, exhausting and confusing, and lenders have a great deal of leeway to deny a loan modification application.
By negotiating with the lender on your behalf, our attorneys at Resnik Hayes Moradi LLP can improve your chances of obtaining a favorable mortgage loan modification and give you the breathing room you need to get your finances back on track, take control of your debt and keep up with your mortgage payments so you can protect your home from foreclosure. Or, if a loan modification isn’t the right option for you, we will conduct an in-depth assessment of your financial situation and the challenges you face and determine whether another alternative to foreclosure better suits your needs. However dire your financial situation may seem, our attorneys can help you take charge of your debt and get your life back on track, whether that means negotiating a loan modification with your lender, filing for bankruptcy, or filing a lawsuit against the lender to get the results you want.
Contact Our Los Angeles Loan Modification Attorneys Today
Homeowners across the country are struggling to stay current on their mortgage and there are plenty of companies out there promising financially distressed homeowners the opportunity to obtain real debt relief by settling their debts or renegotiating or modifying their mortgage loan terms. Unfortunately, many of these companies are scams intended to take advantage of struggling homeowners, and your best defense against these scams is to be aware of your rights and enlist the help of an experienced Los Angeles debt relief attorney. If you are unable to keep up with your mortgage payments and a foreclosure is looming, consult our reputable legal team at Resnik Hayes Moradi LLP as soon as possible. Our knowledgeable and compassionate attorneys have worked with financially distressed clients throughout Los Angeles, Orange County, Riverside, San Bernardino, and San Fernando Valley, and we can help you with legal assistance and exploring the various debt relief options available to you, including loan modification. Protecting your rights and representing your best interests is our top priority, and we won’t rest until your finances are back on track.