Ohio Loan Modification
For individuals who are going through financial hardship, there may be a point in the process where your housing payment becomes unpayable. Unfortunately, this doesn’t leave people with many options. Of them, only foreclosure, bankruptcy, and modification can help solve the problem, all to different levels of consequence.
For many, filing for bankruptcy or going through foreclosure is the last option they want to take. In the balance, only the loan modification is left.
While far from perfect, loan modifications are the least invasive debt management solution if done properly and in a timely manner.
Read below for our quick breakdown on what a loan modification is, who qualifies, and why you want a lawyer to help.
What is a Loan Modification?
A loan modification is a procedure which allows you to either permanently or temporarily change the terms of your lending agreement. This is designed to make it easier for individuals in financial need to have an easier time making their payments without defaulting on their loan.
These changes normally include the following:
- Extending the duration of your loan to lower monthly payments
- Re-adjusting interest rates
- Adjusting loan terms to be either adjustable rate or fixed rate
- Asking for a principal reduction in which part of the original loan amount is forgiven
Unfortunately, while this can be a lifeline for many individuals, not everyone qualifies or starts the process in time.
Not everyone who experiences financial hardship necessarily qualifies for a modification. In Ohio, there are several loan modification requirements which must be met in order to continue:
- You have recently suffered financial hardship such as job loss, divorce, spousal death, or injury
- Because of these circumstances you are at risk of defaulting on payments
- You would be able to meet payments under a modified loan
- The loan you are modifying is at your primary place of residence
Unless these qualifications are met, there is a slim chance your modification will be granted.
Don’t Wait Until Default
Do not wait until you default on a payment to begin the process. The moment you feel you might have difficulty with your payments is the moment you should consider modifying your loan.
The reason for this is simple: the modification process is that it takes time.
When you do not leave adequate time for the modification process, you run the risk for missing several payments and, following, a foreclosure.
Unfortunately, as modification can take several months to complete and be approved for, this leaves many in a terrible position where foreclosure becomes an overbearing risk.
Why You May Need an Attorney
Unfortunately, the loan modification process is difficult to accomplish without the help of a seasoned attorney. Largely, this is because any procedural errors in the process can potentially delay your modification or get your application denied.
Using an attorney ensures that errors of that sort will not occur. Furthermore, an attorney can help you determine the best course of action for your financial wellbeing. This includes discussing the modification process, any special plans you might qualify for, or whether it would be smarter to take a different course of action such as a short sale.
An Experienced Cleveland Attorney
If you are experiencing difficulty with your housing payments, don’t wait to explore alternative payment options. It could mean the difference between keeping or losing your home.