Loan modification lawyers and attorneys.
Lawyers, including volunteer and pro-bono attorneys, help homeowners modify their mortgage or home loans as well as assist people in debt with credit card, car payment or medical bill modifications. There is free or low cost advice as well as consultations. Low-income families, people with no money and senior citizens (among others) will be able to get a free home loan or credit card debt modification from a lawyers.
Homeowners who are facing a foreclosure or who need help with a mortgage may be able to use a lawyer to modify their home loan. Families that have extensive medical or credit card debt can also get help from the modification process. Or assistance is provided as well. Many homeowners and borrowers are finding success with getting a loan modification after hiring a lawyer, or using a free attorneys, to try to modify their loan or debts.
Why use a lawyer for a loan modification?
While there are some things to be cautious about, using an attorney for a loan modification (whether a mortgage, credit card, auto loan, etc.) has many benefits. For example, one benefit of using a lawyer to help modify your loans or debts is that typically they will be able to advise the homeowner or debtor on the ins and outs of the numerous state and federal government assistance programs as well as provide legal advice on stopping debt collectors.
Another benefit of hiring an attorney for debt relief or home loan modifications is that many states govern and regulate how lawyers can operate. There are regulations to protect consumers. Loan modification law firms, and individuals attorneys, have more rules, standards and government regulations that they need to follow that are established by state bar associations, so the chances of a scam or being taken advantage of are much reduced.
Loan modification attorneys have a higher standard than they need to operate to. In addition, state bar associations typically ban lawyers from instructing non-lawyers on how to perform legal services and mortgage modifications. Many lawyers can also help consumers deal with debt. Learn more on attorney debt assistance solutions.
Loan modification process for an attorney
Note, low-income families can often qualify for free legal aid, including for loan modifications (see below). For other people, while each firm and state may have a slightly different process, in general lawyers that modify loans typically charge clients anywhere from $1,500 to $2,000 for a loan modification, whether it is for a credit card or mortgage. The lawyers that charge for their services will often times will not take a case in which the homeowners or borrower has little or no chance for success.
They will usually not take loan or debt modification cases in which the clients has no other outside income. The reason being that arguing with the bank, lender or mortgage servicer in that situation can be pointless, and the chances for a successful modification are minimal at best. The fact is that in certain cases a foreclosure filing just can’t be prevented.
After finding a law firm, at attorney will typically ask for documentation. They will in general needs from clients last two federal income tax returns, six months’ worth of pay stubs, two most recent W-2 forms, and they will also look for evidence of other sources of income and a letter explaining your predicament. There will also be a need for credit card statements, any other debts or loans that are outstanding (such as car loans or medical debts) and more. They will meet with and understand the applicants financial situation and goals.
The lawyer will then puts those various documents into a loan-modification application, which is intricate paperwork that varies by state, lender and servicer. After submitting all necessary forms, they will proactively follow up with repeated calls to the loan officer or credit card company (or bank).
The loan modification process is long and intensive, and it may take weeks or months before an applicant learns whether his or her loan will be modified and whether the mortgage rate will be lowered or the principal amount reduced. They will negotiate with the bank or lender on the clients behalf, and do whatever it takes to help the client modify their mortgage and save their home from a foreclosure filing.
When using a loan modification firm, always keep in mind nothing in life is ever guaranteed. Homeowners or families that are deep in debt should be cautious about any guarantees made by an attorney that a home loan or credit card debt will be modified, since the fact is that not all can be, and that in certain cases the best solution for a person is to file a foreclosure or bankruptcy and move on.
Never deal with an loan modification attorney or any type of credit counseling counseling agency that offers to redirect the monthly mortgage or credit card payments to a third party who will forward them to the lender or mortgage servicer. The process should not be that complicated.
Find a lawyer
You can contact a non-for profit law firm in your state to both find a local attorney who can help with the mortgage modification, and to also ensure the firm is legit. Find a lawyer, and also discuss additional foreclosure prevention tactics. Learn more about free non-profit law firms.
While they are definitely advantages to using a lawyer, homeowners or people in credit card debt who decide to hire a lawyer should contact their local bar association just to be extra safe to ensure they find an ethical law firm that provides loan modifications. Locate a list of lawyer bar associations to look for an attorney or firm..
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