Facts About Loan Modification Laws That You Should Know

Loan modification laws are something that affects everyone who is applying for a loan modification. There may be any different number of laws pertaining to these but most of them depend on the state that you are living in. This is one issue that is causing some confusion for those who want to apply. Each state has a different set of rules pertaining to loan modification whether towards the applicant, to the lender, or towards any third party that has become involved.

State Laws

Some state laws include the amount of notice that is given before a home is foreclosed upon or even concerning the type of notice given. For example, almost two years ago the residents of California saw a new law passed that demands that the lenders telephone the borrower concerning the loan and discussing loan modification before going into the foreclosure procedure. Anyone who is having difficulty with making their loans payments needs to be familiar with these laws concerning notice and concerning their own responsibilities with their homes and mortgages. Laws concerning each state may be hard to find without having to pay for them, however if you want to take the time, you can search the website of your particular state which will list documents pertaining to your search.

Laws Concerning Third Party Actions

Knowing the law about how the third party that you hire can treat your services is important. For example, there is supposed to be a three day allowance for clients who want to cancel their contract in most cases and it must be stated on the contract as to whether or not the company abides by this. There are also laws to which these firms must abide by in the ways that they discuss the loan modifications. They are not permitted to make any illegal transactions with the lender or the borrower, amongst many other things that would be considered criminal activity or a sign of malpractice which can come in the form of deceiving any party involved.

Laws Concerning Eligibility

Other laws that you need to know before applying are those concerning eligibility. The loan modification laws for eligibility requirement are different for every state but there are written rules for every institute concerning these pieces of criteria that one must meet. If you are in the state of Florida but have your modification in another state, then those modification eligibility requirements run according to the institute that you have your loan with, not according to where you live. These requirements usually pertain to the balance owing, your income levels, the number of dependents that you have and so on. If you are dealing with the Federal government's loan program, then the loan modification laws of eligibility remain the same in every state. That is one a requirement for any institute that is participating in the program.

The Importance of Knowing Loan Modification Laws

Knowing loan modification laws is very important for a number of reasons including the facts that this will prevent you from being taken advantage of and it will prevent you from taking part in illegal activity. If you don't know the laws in your state, check them out today for your own benefit.

by: 1stforeclosureprevention

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