Home > Avid Law Center > Loan Modification: When to Bring in the Pros

Loan Modification: When to Bring in the Pros

When should you bring in the pros to help you avoid foreclosure?

Sure, you can apply for a loan modification on your own but for homeowners in financial distress the process of avoiding foreclosure can be intimidating. Luckily there are a number of specialists who can help you break down the options available to you. Just be sure that before you hire assistance that you’ve done your research and have learned as much as possible about the process.  Then, you’ll be better prepared and will know what questions to ask and have a better understanding of how the process should be handled.

Your research should start with managed expectations. Simply put, there are three elements that make a homeowner a good candidate for loan modification. First and most obvious, you’ll need a strong desire to keep your house and be ready to fight for it. Second, you’ve experienced financial hardship. Third, you have a steady income and are able to prove that you can continue monthly payments.

Once you’ve established if you’re a good candidate, you need to put together your application. The secret to a successful loan modification is how it’s presented. Lenders will modify loans only if the borrower can convince them that it is in the lender’s best financial interest to do so. Professionals with specialties in real estate and loan restructuring will help you put your best foot forward and will make sure your case is presented the best way possible.

But even putting the best application together can’t guarantee a favorable outcome. However, sometimes the added pressure of a threat of litigation helps the process, again, something professionals can help you with. Also, with the hurdles involved in the modification process, there is risk that the modification will be temporary; or worse yet that the modified terms are worse than the original terms – something professionals can help you prepare for and determine the next steps for your case.

What’s most important during this very stressful time in your life is to ask questions, know all of your options and be prepared with a plan B. Banks are making it increasingly more difficult to restructure a loan so having a good basis of knowledge and the right assistance can help you get through the process as easily as possible.

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