Friday, September 5, 2014

Loan Modification: Best Done Sooner than Later

When it comes to saving a home from foreclosure, one of the best solutions you can use is to apply for a loan modification. Think of it as a backup plan that you can fall back on. It’s possible that you won’t get the verdict you want, which is to retain your home, out of your foreclosure case. Your foreclosure lawyers will likely advise you to start talking to your lender about loan modification while they defend your foreclosure case.

Why this method works

It’s like a one-two punch delivered in rapid succession—your attorney does his job of defending you in the courtroom while you work with the bank’s representative to obtain a more affordable payment plan. Loan modifications take months to set up, so the ideal time to start negotiating for one is early on in the litigation process, when trials and hearings haven’t been set yet. Trying to get a loan modification when a trial is weeks or days away can be problematic.

An early start is necessary


It’s not uncommon for homeowners in foreclosure to start considering loan modification only when their trial is coming up in three weeks, two weeks, or even one week. There’s a good chance that these homeowners have lost a major opportunity to salvage their house. So for your sake, regardless of how far along your foreclosure case may be, apply for a loan modification immediately.

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