What Is a Loan Work-Out in California ?
A loan modification, otherwise known as a loan work-out, is a process by which your mortgage lender agrees to change or “modify” the terms of your existing mortgage, allowing you to continue or resume making payments on the loan and helping you avoid losing your home through foreclosure.
Modifications can result in one or more of the following ways:
- Reduction of interest rate
- Extension of loan term, such as extending a 30-year mortgage to a 40-year term
- Converting an interest only or adjustable rate mortgage into a fixed, principle and interest payment
- Capitalizing the delinquent amount that you owe onto the balance of your mortgage
- Reduction or deferment of your principle loan balance
“She didn’t hesitate to jump right in and help us with all the harassing phone calls and all the tedious things that needed to get done. We highly recommend Financial Relief Law Center.”Kristina P.
Why Should I Retain Financial Relief Law Center, APC for Modification Help?
Obtaining a loan modification is not an easy process when working with the lenders. Frustrated homeowners often contact our loan modification attorneys in desperation after many failed attempts to work with their lender on their own.
Our firm takes the guesswork out of the modification process, giving you the peace of mind knowing that a professional, reputable law firm is handling your case. Financial Relief Law Center, APC is experienced in working with the lenders and their modification assistance programs and guidelines. We will review your financial situation and analyze your income, expenses, and debt ratios to determine whether you may qualify for modification assistance. We will complete a due diligence phone call with your lender to gain insight into your loan, followed by a conference call with our head attorney to review the findings and to set realistic expectations for the modification process and possible solutions.
Should you become a client with our firm, we handle all financials, paperwork, and phone calls to your lender, taking the stress of trying to do it yourself off your plate. Financial Relief Law Center, APC processes modifications in compliance with SB 94 and therefore takes no upfront fee for modification assistance.
What Can Financial Relief Law Center, APC Do Differently?
One tool we utilize is to file a consumer regulatory complaint with the appropriate regulator to escalate the file review. This is a key tactic when consumers experience unwarranted or unnecessary difficulty in attempting to work with their mortgage servicer for a modification.
Our basis for regulatory complaints include the following issues:
- Servicer claim to not receive the homeowner’s modification application
- Lack of communication and response from the servicer and case representative
- Perpetual review processes without progress or meaningful updates
- Lack of knowledge or competence by servicer representative
- Misrepresentations made by the servicers
- Negligence in handling a homeowner’s modification request
- Failure to comply with MHA guidelines
- Failure to exhaust non-foreclosure options prior to foreclosing
Having a knowledgeable attorney who can effectively identify these issues and leverage them to your lender, servicer, and regulator can make the difference between losing your home and obtaining an affordable mortgage payment and sense of security for your family’s future.
As attorneys who routinely support consumers in potentially dire financial straits, we are empathetic and compassionate about what these problems mean to our clients. More importantly, we’ve grown to understand how important it is that we only deliver our best possible work so our clients’ chances of getting the best possible outcome are secured.
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