If you’re facing foreclosure, you may feel as though you’re all out of options. A loan modification may be worth considering in this case, as it could put a stop to foreclosure by restructuring the terms of your loan. As a trusted foreclosure attorney on Honolulu, HI, Greg Dunn Bankruptcy and Debt Relief Attorney provides the following information on loan mods and how they could potentially help you.

How They Work

A loan modification takes your existing mortgage and changes it to make payback easier. This can entail a number of different modifications, including reducing your interest rate, bundling missed payments into the mortgage, or extending the loan term. The goal is to make it possible for a homeowner to keep their home while also staying current on payments. You may be eligible for a loan mod if you’re facing a financial hardship or if you can prove that the lender’s mistake led to your inability to pay. If so, working with a foreclosure attorney with experience in loan mods is recommended.

What the Different Types of Modifications Are

While your lender may offer to modify your loan at their discretion, you can also apply for help from the government. You’ll have two different options in this case; the Home Affordable Refinance Program (HARP) works well for homeowners unable to refinance their loans because their home has decreased in value. There is also the Home Affordable Modification Program (HAMP), which allows you to pay 31% of monthly gross income instead of the previously agreed upon terms.

How You Can Apply

First, inform the lender of the issue and ask for assistance. Depending on the circumstances, they may modify the loan, or you may need to seek outside help. Next, provide documents so they can determine your eligibility. These typically include a letter explaining why you’re facing economic hardship (such as an illness or death in the family), as well as pay stubs, tax returns, and a listing of current debts. If your request is denied, you may need to pursue other options to stop foreclosure.

Greg Dunn Bankruptcy and Debt Relief Attorney will help you fight to save your home using tried and true methods. As a foreclosure attorney, he will help you take the proper steps toward loan modification, whether you’re working with your lender or government program. Give him a call today at (808) 524-4529 to schedule an initial consultation, and visit him online for more information.