How does a loan modification work?
Housing is the largest monthly expense for most people, and it usually takes priority when there are several bills to pay. If you own your home, it is likely that you also have a strong emotional attachment to it and would be extremely distraught if you were forced to foreclose. At Law Offices of Marshall D. Schultz, we understand how important it is for you to keep your home, and we know that it can be exceedingly difficult to manage a large debt load which includes an excessively high mortgage payment. We will work with you to find a solution to your financial problems that leaves you in a position of security and stability. When you become our client, we take a sincere interest in your well-being and measure our success with yours.
Modifying a Loan in Your Area
A loan modification will typically reduce either the interest rate or the principal on the loan, and it can also extend the term. In any scenario, you will end up with a lower payment every month. The reason a lender would accept such an agreement is that the expense of a full foreclosure combined with the proceeds they would expect to receive from reselling the house may be significantly less than the cost of allowing you to pay back less than you originally borrowed.
Over Three Decades of Legal Experience
A legal professional from our firm can represent you with your lender in an effort to negotiate a loan modification that would give you a lower monthly payment and free up your income to pay your other debts and expenses. This alternative to bankruptcy is an effective way to take the pressure off your finances and help you avoid a crisis. You can request a modification whether you are in foreclosure or in default, or even if you are current on your payments. Your Detroit bankruptcy attorney will have the task of persuading the lender to see that it would be more beneficial from their point of view to write off part of the debt rather than to enforce the current terms of the loan. Contact us today to schedule a free initial consultation or visit us at one of our offices in Southfield or Detroit.