About Loan Modifications
Explained by a New Hampshire Bankruptcy Attorney
If you are like millions of Americans who are experiencing financial hardship
and who can no longer afford their mortgage payments, it is important
for you to become familiar with all of your options, including the possibility
of a loan modification.
nearly 20 years of experience and as the founder of Bryan W. Clickner, Attorney at Law, PLLC, I can
review your situation in detail and explain your options and what each
option means. By arming you with the correct information, you can make
an educated decision about how best to proceed forward.
How does a loan modification work?
When homeowners are facing foreclosure due to financial hardship, they
may be able to work with their lender to obtain a loan modification, which
changes the term of the mortgage loan so the borrower can afford the payments.
Any change to the original terms of the loan is a loan modification and
there are multiple loan modification programs available.
When applying for a loan modification, you will have to provide detailed
financial information to your lender, including income, your most recent
tax returns, bank account balance information, and a letter describing
what circumstances led to the financial hardship (job loss, illness, divorce
etc.). Be sure to give your lender exactly what they ask for so the process
moves swiftly, and be sure that the information is accurate.
Writing the Hardship Letter
As a part of your application, you will need to write what is called the
hardship letter which explains how you got into this mess. This letter
is very important and must be well-written, and you will want to be precise
in explaining the train of events.
When attempting a loan modification, it's very important to
leave a paper trail. Document every time you talk to your lender or get a correspondence. I
also recommend using certified mail or shipping companies like FedEx to
ensure that documents arrive and that you get proof of it. Sometimes during
the loan modification process, a lender will say that they never received
documents, but with FedEx, you get a signature and an employee number,
so it's worth it.
Contact Our Manchester Bankruptcy Firm!
If you are facing foreclosure, I urge you to
contact me to discuss your situation in a
free consultation. As a
New Hampshire bankruptcy lawyer, I would be more than happy to discuss whether or not you would benefit
from a loan modification or another
bankruptcy alternative. If
bankruptcy is your best option, I can guide you every step of the way.
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