McFarlin LLP Helps You Avoid Foreclosure

By Timothy McFarlin

Full Service, California Law Firm

Often, if a family or individual suffers a change in financial situation after buying a home—losing a source

of employment, for example—foreclosure can seem inevitable

The individual paying the loan payments begins to fall behind and, before long, the home is taken from the

owner.

However, McFarlin Law, LLP, recently completed an article for the website that offers an alternative solution

that can help struggling homeowners keep up with their loan payments.

The alternative comes in the form of a loan modification. If this process is successful, it will result

in changes to your interest rate and the duration of your loan, making the payments more affordable.

However, it should be noted that not all loan modifications are created equally; therefore, the article provides several tips to help struggling homeowners find the right form of loan modification to meet their

needs.

First, homeowners must not wait or hesitate on starting the process of seeking a loan modification.

Previously, loan modifications were only available to those who had already defaulted on the loan. However,

now, individuals are able to receive loans before they fall too behind on payments.

Additionally, some homeowners are even able to negotiate new terms before they start missing

payments.

In order to determine the process for modifying the loan in question, homeowners must research the loan itself; specifically, individuals need to know whether a signal

bank controls the loan …

… or if it is divided between different establishments, as this will affect the homeowner’s ability to modify the

loan. To discover these answers, ask the mortgage servicer directly who owns the loan.

From there, homeowners can begin the process of seeking out the modification to the loan. First, the

owner must provide honest and detailed information about the financial situation of all those living in the

home.

This information will be used to determine whether the family qualifies for a loan modification; therefore,

providing false information out of embarrassment could inhibit the owner’s ability to receive the help they really

need.

To confirm and verify this information, paperwork will be required; gather all necessary forms, such as the

homeowner’s most recent income tax return, information about the family’s savings ….

… account balances on any and all credit cards, details of any other monthly payments, income information for the entire household, and a letter breaking down why

the family needs the loan modified.

In the process of doing this, it is important to document everything; all calls and letters received from the lender

should be detailed and taken to note. Finally, it is crucial to remain patient and calm; many modifications

take months to complete.