Debt Relief And Loan Modifications

If you are having trouble keeping up with your mortgage payments, you may decide to seek a loan modification. While this could potentially resolve your financial issues, your lender must first agree to the change. Many times, lenders tend to drag their feet when a homeowner requests a modification, asking for additional information and engaging in other delay tactics. Eventually, they may decide that you do not qualify for an adjustment. At this point, you may be so far behind in your payments that you face the threat of foreclosure. That is why it is important to work closely with an experienced lawyer who can explore all avenues of debt relief.

The attorney at the Law Offices of Darin D. Pinto, P.C., has nearly 30 years of legal experience. Darin D. Pinto knows how to negotiate with lenders to modify your loan. If this is not possible, he can look at other options to help you get your finances under control.

Can A Loan Modification Stop Foreclosure?

A loan modification can stop a foreclosure in two ways. The first is when you take a loan modification before proceedings start so that you can reduce your monthly mortgage payments. This means that you won’t get behind, and you won’t trigger the foreclosure modifications. However, this also means that you have to accept your issues relatively quickly before things can come to a head.

The second way happens after proceedings start, in which case, you will then file for bankruptcy. The bankruptcy process will stop any movement on a foreclosure for a time. And, as part of your bankruptcy reorganization, you can then pursue a loan modification.

In both instances, the key is moving to alter your monthly payments to something you know you can manage.

How Does A Loan Modification Help?

The loan modification process involves a change to your loan. It can be a temporary or permanent alteration of your:

  • Payment
  • Term
  • Rate

A change to any one – or, often, all – of these can vastly decrease the pressure on you and allow you to catch up. However, it is not always easy to get a loan modification, and that’s why you need a dedicated lawyer.

Is Bankruptcy The Answer?

It may seem counterintuitive, but filing for bankruptcy may enable you to save your house from foreclosure. The reason for this is what is known as the automatic stay. Filing for bankruptcy puts an immediate stop to foreclosure actions and can provide you with enough time to get caught up on your payments. Also, it is still possible to request and receive a loan modification after you have filed for bankruptcy. This choice is best for people who are seeking Chapter 13 bankruptcy protection. Attorney Pinto and his team will thoroughly review your situation to help decide which options are best for your situation.

Facing Foreclosure? Legal Options Are Available. Contact The Firm Today.

To learn more about loan modifications and bankruptcy protection, speak with Mr. Pinto. Call 908-913-6168 or contact the firm online to schedule an initial consultation. Located in Westfield, he and his team serve clients throughout the surrounding areas of New Jersey.

Law Offices of Darin D. Pinto, P.C., is a debt relief agency. It helps people file for bankruptcy relief under the Bankruptcy Code.