Loan Modifications

The Schwilm Law Firm was recommended to me by a friend. The attorney and staff were very professional and helpful whenever I had a question or concern. I appreciate all their hard work on my case. I will surely recommend their office to others. Thank you.

Loan Modifications in Charlotte

Helping You Negotiate Better Payment Terms

The main goal of a loan modification is to make your payments. The loan workout process can be arduous, so having our experienced attorney from Schwilm Law Firm, PLLC on your side can make all the difference in your outcome. We use our more than 15 years of experience and our practical knowledge to negotiate persuasively on your behalf.

Determining Your Loan Modification Eligibility

Every lender has specific criteria that must be met to qualify for a loan modification. To be considered for a loan workout or other assistance, you must provide copies of your financial information. Examples of factors that a lender considers in determining if you are eligible to modify your loan include:

  • Mortgage ownership — The servicer of your mortgage may be different than the institution that owns your loan.
  • Primary residence — Most mortgage modifications are available only on a home that is owner occupied, not an investment home.
  • Property condition — Modifications are not allowed on condemned properties. The home must be in livable condition.
  • Net present value — This formula is used to compare the economic circumstances of a loan modification to other alternatives. If the net present value with the modification is higher than the net present value of the mortgage without the modification, you may be eligible.
  • Prior modifications — If your mortgage has been modified in the past and you were able to make all the required payments of that modification, you are not likely to receive another restructure of your loan.

Our Charlotte bankruptcy attorney can review your circumstances and work with your lender to determine if you are eligible for a loan modification.

How a Loan Modification Affects Your Credit

If you are struggling to make your house payments, you may seek a mortgage loan modification to avoid foreclosure and protect your credit score. However, loan modifications may take a toll on your score, depending on the type of program. The pitfall of some modification programs is that they continue to affect your score negatively. Even though you are paying a newly agreed-upon amount, the entity still reports that the original contract has been breached or indicates on your report that you paid less than what you originally agreed.

Alternatively, loan modification through government programs may have no impact on your credit score at all. Such programs include loan reporting requirements that result in the mortgage continuing to be reported as current and paid in full if the requirements of the program are met by the homeowner.

Determining if a Loan Modification is Your Best Option

If you are trying to decide if you should seek to modify your mortgage or your student loans, the most effective way to determine if a loan workout is your safest option is to contact our lawyer at Schwilm Law Firm, PLLC. We listen to your concerns, thoroughly review your financial situation and help you develop an effective debt relief strategy.

Schedule a Free Consultation With a Charlotte Bankruptcy Lawyer

With more than 15 years of experience, our attorney at Schwilm Law Firm, PLLC can effectively help you understand your legal options for dealing with your debt and create a plan for how to proceed. Serving the Charlotte metropolitan area, we offer free initial consultations and convenient parking. Contact us at 704.567.5252 or online.