Loan Modification

A Loan Modification is a new way to make it more affordable for you to stay in your home. A Loan modification can also serve as an alternative to foreclosure.

What is a Loan Modification? A loan (mortgage) modification is when the lender modifies your current mortgage in order to work with you because of a financial hardship. The purpose of a loan modification is to help make your loan more affordable. Usually it is in the form of a rate reduction, principle reduction and/or a fixing of the rate for a certain amount of time. 

With a loan "modification" you take the mortgage you are currently paying and change the paying requirements and / or interest rate in order to secure a manageable fixed rate. A change in the rates of the loan and payment terms does not result in the need for a new closing, appraisal, survey, or taxes. In contrast, if you attempt to "refinance" a loan, which cannot be done in the current market, a borrower will be required to have a closing and forced to pay a myriad of taxes and fees.

Lenders, though difficult to get through to, will negotiate loan modifications when presented properly and the borrowers are facing financial difficulties and cannot obtain alternative financing options. An experienced attorney will show the lender why it is in the lenders best interest to modify the loan while vigorously negotiating the most beneficial terms for his / her client. Ultimately this leads to the lender reducing your monthly payments or changing the overall loan terms which allow homeowners to avoid foreclosure.

Documents Required for a Loan Modification:

	Last two years tax returns and any tax schedules
	Most recent month of paystubs
	Most recent two months of bank statements for savings/checking accounts
	Current mortgage payment coupons/statement for existing mortgages
	Hardship Letter

Jacksonville Foreclosure Defense Lawyers- Law Offices of Justin McMurray, P.A.

Jacksonville Bankruptcy and Foreclosure Lawyers- Law Offices of Justin McMurray, P.A.

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