Bayonne, NJ Loan Modification Lawyers

Nearly everyone is feeling the effects of trying to survive in today’s economy. With rising interest rates, increasing gas and food prices, sky-rocketing insurance premiums, soaring utility bills, and the price of about everything else imaginable, it’s no wonder so many families are struggling to stay afloat and finding it difficult to meet their financial obligations. Many are questioning how long they can continue to manage this ongoing hit to their wallets without seeing any real increase to their bank accounts. If you are like so many in our country who are affected by economic hardship and facing possible foreclosure, you should consult  Bayonne modification lawyers to discover how to save your home, and give yourself some much needed relief.

What Are Loan Modifications?

A loan modification directly changes the terms of your current mortgage replacing them with more favorable terms. Obtaining a loan modification has several benefits, including:

• Lower monthly payments
• Lower principal amount on your mortgage
• Lower interest rate
• Lengthening the loan term
• Converting your loan from a variable to a fixed interest rate
• Eliminating late fees
• Less upfront costs
• And more. . .

Modifying a loan and refinancing a loan may sound similar, but actually they are two different processes. A refinance replaces your current loan with an entirely new loan and completely different terms, whereas a loan modification changes the conditions of the existing loan to make it easier to meet your monthly payment. If you are making your regular payments, but looking to make changes (especially if interest rates have gone down) you would likely need to refinance your loan. However, if you are behind and struggling to make monthly payments, a loan modification is likely the better option.

Loan modifications generally involve fewer costs compared to refinancing. In a loan modification, the lender may charge fees such as loan modification fees or late payment fees, but these are typically nominal. Refinancing, on the other hand, will involve closing costs, such as appraisal fees, origination fees, title insurance, and other expenses typically associated with obtaining a new mortgage.

How Our Bayonne Loan Modification Lawyers Can Help You

The harsh reality is that mortgage lenders are under no obligation to change the terms of your loan. They have no legal or financial incentive to do so. You are contractually bound to pay the loan amount you agreed to pay under the original terms of the loan.  As you might imagine then, It is actually quite difficult to get a loan modified. It takes the persuasive negotiation skills of loan modification lawyers who, having been through the process, know how to secure a favorable outcome on behalf of their clients. 

The question is then, why lenders would change existing loans to help borrowers if they are not compelled to do so? Here are a few key reasons why a lender may be willing to consider a loan modification:

1. Reduced Risk Of Default: In this way, the lender reduces the risk that the borrower will default on the loan. This can help the lender avoid the costly and time-consuming foreclosure process.
2. Continued Cash Flow: Lenders may choose to offer a loan modification rather than foreclose on a property and potentially having to sell it at a lower value. In this way, the lender receives regular mortgage payments and has a steady cash flow.
3. Protection of Collateral: The lender may incur additional costs during foreclosure, such as legal fees, property maintenance, and loss of market value. A loan modification can protect the borrower’s collateral and keep the property’s value intact.
4. Regulatory Compliance: The lender can demonstrate compliance with government regulations by offering loan modifications as an alternative to foreclosure.
5. Customer satisfaction and reputation: Lenders can maintain a positive reputation by offering loan modifications. The lender can increase loyalty and goodwill by providing borrowers with a viable solution to financial hardships.

Why The Law Offices Of Patel and Cardenas Are The Clear Choice!

At The Law Offices of Patel and Cardenas we understand what you are going through and are confident we can help you see a way through it! With over 30 years of combined experience handling loan modifications for people in financial crisis, our team has the negotiation skills and persuasive tactics that are required to work with your mortgage company, get your loan modified and get you back on the path to financial stability. Contact our Bayonne modification lawyers today for a free consultation and let us help you!