Loan Modification Options
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Loan Modification Options
Whether you are struggling to stay current on your payments after your mortgage rate adjusted or you have experienced a change in income, a loan modification can help you restructure your mortgage for a more affordable payment. An experienced loan modification attorney can help you understand your options to renegotiate and modify your home loan. The goal of any loan modification is to make payments affordable while also paying off the mortgage. There are several types of loan modifications we can pursue to help you avoid foreclosure and keep your home.
Interest Rate Reduction
An interest rate reduction may be temporary or permanent. With a lower interest rate, you will save a substantial amount of money over the term of your loan and enjoy lower monthly mortgage payments that make your home more affordable.
Extended Term
Extending the term of your loan means you will have longer to pay back the money. If you have a 30-year mortgage and 27 years remaining on the term, extending the loan term to 40 years will dramatically lower your payment. This will result in a lower monthly mortgage payment, but it will also increase the amount you pay in interest over the term of your loan if it’s not accompanied with an interest rate reduction.
Principal Reduction
Principal reduction, or forgiving some of the debt of the mortgage, is sometimes an option if the home has declined in value. Keep in mind forgiveness of mortgage debt is the most uncommon type of loan modification because lenders do not want to forgive money they are owed and they may be restricted by contractual obligations to investors of mortgage-backed securities.
Contact a Las Vegas Loan Modification Attorney
At Las Vegas BK, we will negotiate your mortgage directly with your lender on your behalf after developing a plan with you. An experienced attorney can watch for mistakes as well as signs of violations of predatory lending statutes to protect your interests. Once your paperwork is reviewed, we will work with you to determine the mortgage payment you can afford and decide which loan modification options are feasible in your financial situation.
