Seattle and Tacoma Loan Modification Attorneys
Welcome to the Loan Modification Department of Dickson Frohlich, Attorneys at Law. In handling paperwork and aggressively negotiating with banks on your behalf, our main goal is to keep you, the homeowner, in your home.
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A loan modification is a process in which the lender and the borrower of a loan negotiate to modify the terms of the loan outside of the original contract terms. Loan modifications can be extremely beneficial to a borrower in that a loan modification may reduce the interest rate, reduce some of the principal, reduce late fees or other penalties, or even lengthen the term of the loan. Because a properly modified loan may allow a borrower to remain in his home and avoid foreclosure, loan modifications are becoming more and more appealing to homeowners who are struggling to make their mortgage payments each month and who do not want to lose their homes. Read more.
Loan Modification Practice
Dickson Frohlich’s attorneys possess an immense understanding of the loan modification process and procedures. Our attorneys assist clients throughout Seattle, Tacoma, and the Puget Sound region in their individual loan modification matters and have extensive experience in working directly with lenders. Because the loan modification process is often confusing and time-intensive, seeking professional legal help is your best bet. Dickson Frohlich’s experienced attorneys stand ready to represent you in your loan modification needs.
The Loan Modification Process
Seeking a loan modification is never an easy process. Besides the necessary documentation required in negotiating a loan modification, modifying a loan can be time-intensive and confusing. Often, a borrower must work with a lender that is dealing with thousands of other homeowners who are attempting to save their homes through the loan modification process. The unfortunate result is that many homeowners are forced to wait for a substantial period of time before being helped, or they are left without any help altogether.
Although loan modification requirements will vary from lender to lender, the documents needed to negotiate a loan modification are generally the same. These required documents may include, but are not limited to, your most recent tax return, a statement of your complete income, your recent pay stubs, and a written affidavit describing the hardship you are experiencing in meeting your financial obligations. Because a loan modification requires many of these documents, the earlier you start, the better.
In addition to the required documents, there are three central factors that a lender takes into consideration in determining whether to grant a loan modification: 1) the financial hardship of the borrower; 2) whether the borrower is currently delinquent on mortgage payments or is at risk of becoming delinquent in the immediate future; and 3) the borrower’s debt-to-income ratios. After reviewing and analyzing these three central factors, a lender will then determine whether to grant a loan modification to the borrower. Keep in mind that this process takes time and generally is not simple. With borrowers being forced to wait substantial periods of time before being helped, the loan modification process can be overbearing to an individual who is attempting to work one-on-one with a lender.
As previously stated, in determining whether to grant a loan modification, there are three central factors that a lender takes into consideration: 1) the financial hardship of the borrower; 2) whether the borrower is currently delinquent on mortgage payments or is at risk of becoming delinquent in the immediate future; and 3) the borrower’s debt-to-income ratios. While the first two factors seem relatively straightforward, understanding your debt-to-income ratios is oftentimes confusing and may seem complex; yet understanding your debt-to-income ratios is very important.
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