subject: Preventing Foreclosures With Bank Loan Modification And Special Legal Counsel [print this page] Bank Loan Modification Bank Loan Modification
This involves negotiating with the lender to reach favorable mortgage terms. Terms can include reduced interest rates and/or a lowered principal without incurring the additional closing costs associated with refinancing. Though it isnt well known among homeowners, foreclosure is very costly to lenders and there is real incentive for them to come to an equitable agreement with the borrower. Be aware that these negotiations can be complex and the bank is trying to get the terms that benefit them the most. As such it is advisable to secure qualified counsel that understands the nuances of the law in your area.
Sell your home
In certain cases, there really is no other alternative than to sell your home and make other living arrangements. Make sure that you secure a qualified real estate agent that will have the exposure and marketing resources needed to sell the home in a timely manner. An alternative to a straight market sale would be a short sell. In a short sale, you negotiate with the lender to accept a sale of the home at a value that is below the loan value. Even though your credit will be damaged, the damage will be less than a foreclosure. It is vital that you seek qualified counsel as a short sell is more complicated and often contentious.
Specialized legal counsel
Another less obvious alternative exists. The most overlooked source of useful information about your financial obligations is the mountain of paperwork that you filled out when you closed on the house. There may exist buried in the documents terms or conditions that are actually illegal that can give the homeowner leverage in negotiations. Counsel that specializes in bank loan modification and foreclosure solutions can bring expert knowledge to bear in these often arcane tomes and can advise the homeowner on the proper methods for retaining home ownership. Unscrupulous lenders may be held accountable for fraud and save the borrower countless hours of heart ache.
