Find Help from Loan Modification Attorneys in Lisle, IL

When taking out a loan, you never expect not to be able to repay it. Whether a mortgage, vehicle loan, or another line of credit, loans can quickly become unmanageable once you start missing payments. Many people miss payments due to loss of income or illness but then are unable to get back on track. When a loan is in danger of defaulting because of too many missed payments, you may still have options through loan modification. Experienced loan modification lawyers in Lisle, IL, are here to help.

What are Loan Modifications?

Whenever the original terms of a loan are changed, it is considered a loan modification. Loan modifications take place for a variety of reasons, but it is usually due to the person being unable to make their agreed-upon payments either in full or on time. The type of loan modification will depend on the situation, the amount of the debt, and the willingness of the loan grantor or creditor to allow the modification. Here are a few common types of loan modifications:

• Lowering the interest rate: A common way to make the payments easier to manage on a loan is to lower the interest rate. If your credit has improved since the time when you first accepted the loan, you may be able to ask for a lower interest rate.
• Refinancing for lower monthly payments: If you are struggling to make the payment based on the amount, it may be possible to modify the loan through refinancing. Typically, the loan is modified in the length of time until pay-off, which makes the payment each month lower.
• Changing the amount of the loan overall: In some instances, it may be possible to arrange to pay less than you owe on the loan. This is rare, but it does occur, especially if significant personal hardship has made it impossible for the borrower to pay back the full loan amount.
• Consolidating the loan with other loans: Consolidating all of your debt into one loan is common and allows people to get a handle on their due dates. This option can’t be used with all loan types, so it is best to speak with a loan modification lawyer to understand your options.

Do I Need a Loan Modification Lawyer?

While it may be possible to handle loan modifications on your own, there are several reasons to consider seeking legal help. An experienced loan modification lawyer will be able to advise you on which option may be best for your situation. They are also more experienced in dealing with the necessary documents and overall process. Finally, if you are uncomfortable speaking with creditors and loan officers repeatedly to get what you want, hiring a loan modification lawyer eliminates this concern altogether. Having a lien release lawyer on your side is also useful since the process itself can seem overwhelming and confusing. Your attorney will be there to answer questions along the way. If you are unsure about your options or how to have a loan modified, speaking with a loan modification lawyer may be a good place to start.

Can Loan Modification Stop a Foreclosure?

If you are already behind on payments and the bank or loan company is threatening foreclosure, you may still be able to enter the loan modification process. Most mortgage lenders have what is called a loss mitigation department. They work with people on modifying existing loans in order to avoid the loss of a mortgage and/or property. You will need to compile several important documents, such as bank statements, pay stubs, tax returns, and other paperwork, to convince the loss mitigation department that you need the loan modified. You may also need to include a letter of hardship when applicable. This is a letter explaining why you have fallen behind on your mortgage and why the loan company should agree to the requested modifications. The loan modification process may stop, or at least stall, the foreclosure, which may give you time to figure out a financial solution. If you are already facing foreclosure, it may be even more crucial to work with a loan modification lawyer.

What is the Flex Modification Program?

There are specific programs in place intended to help people in danger of foreclosure from losing their houses. The Flex Modification Program may be an option for you if you meet the criteria. While there are many conditions you must meet to be eligible for approval, if you meet the conditions, the likelihood of a modification being denied is slim. In order to be eligible for the Flex Modification Program, an applicant for loan modification needs to be a first-time mortgage holder, and at least a year must have passed since originally obtaining the mortgage. You also must not have refinanced your home using any other mortgages. It is also worth noting that this program can only be used on mortgage debt. It can’t be used on any other type of type the homeowner may have in their name. These are a few of many conditions, which is why it may be worth it to speak to your loan modification lawyer about your eligibility for this program. They will be able to determine your eligibility and guide you on the next steps in the process of being approved for the Flex Modification Program.

Get Help Now

When it comes to finances, no one wants to fall behind or lose their way. Once you start missing payments and your accounts go to collection agencies, it can be hard to get a handle on your finances. If it happens, getting back on track as soon as possible is the key to a better future with more financial opportunities. If you have questions about how loan modification may help you get ahead of debt, we can help. Our team is ready to answer questions and offer legal advice based on your unique situation. Contact us today at (708) 575-1500 to see if a loan modification may be right for you.