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.

With 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.