Monday, December 20, 2010

Do Loan Modifications Really Work?

When our clients ask if loan modifications really work, it really is just a matter of opinion.

A loan modification is when the borrower and the lender mutually decide to change the terms of the original mortgage. Loan modifications can be temporary or permanent.

In my opinion, loan modifications simply act as a band aid to a long term problem.  Lenders are simply trying to buy time while they get an opportunity to collect money from you while they prepare to foreclose on your home.

"According to a fresh report from the government's Office of the Comptroller of the Currency, loan modification plans are getting nowhere fast." -by Tom Kerr,

How does this affect the average consumer? Most of the clients I see tell me they want to file bankruptcy once they are able to reach a loan modification with the bank. Unfortunately,  about 95% of them come back and tell me that they lost their home because the lender was unwilling to work with them, or because the lender continued to give them false hope right up to the day of auction.
As a home owner there are several legal remedies and options that you may have. At the Alvarez law firm it is important for our clients to know their legal rights.  The Lenders have a team of attorneys to protect their interests, who do you have to protect yours?
Call now to set up a free consultation. Learn YOUR rights.


Rachel Alvarez
The Alvarez Law Firm

No comments:

Post a Comment