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Benefits of Hiring a Mortgage Attorney

Benefits of Hiring a Mortgage Attorney

In : Business By storytimes About :-8 months ago

For those who are thinking what a Mortgage Attorney is? Well, first you need to understand what an attorney is. An attorney is nothing but another term for a lawyer or an advocate. Furthermore, a mortgage is a land lien on your property, set by a bank or monetary foundation, for cash that you acquired from the money related organization so as to pay for the property. After a mortgage has been signed and endorsed, you will have the commitment to pay back the loan for the property, in addition with interest, and the financial institution will have the privilege to abandon your property on the off chance that you don't repay the mortgage.

What is the Purpose of Hiring a Mortgage Attorney?

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Everyone has a right to defend themselves at points of the doubt while doing so properly is of great importance. There may be a chance that the servicer went wrong somewhere when servicing loans. So basically what a mortgage attorney does it that it recollects and reviews all the documents and checks whether the lender hasn't violated any one of the mortgage law as listed below -

  • Causing modification disqualification or reduction in equity
  • Delays in the modification process
  • Negligence – telling you that your modification documents were lost or never received by the lender or telling you that you qualified for a modification but then later forcing you to apply again.
  • Proceeding with foreclosure while in modification review
  • Accounting errors
  • Estoppel – telling you that your modification was denied after a long wait.
  • Committed fraud by miscalculating the mortgage payments.
  • Even going so far as advising borrowers to fall behind
  • Failure to implement a permanent modification
  • Dual tracking – moving forward with foreclosure while simultaneously offering to modify the loan

If in case any one of these laws were violated by the servicer then the financial institution gets into their own trap filed with a cross case.

What if the lender didn't violate any laws?

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Well, if this question arises then no need to worry. Your mortgage attorney is still there to assist you. In this case, the lender will be asked for a mortgage modification.

What is Mortgage Modification?

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Mortgage Modification is a permanent restructuring of your mortgage where the lender changes one or more of the terms of the loan so that it's more affordable.

  • reduce the interest rate
  • convert from a variable interest rate to a fixed interest rate
  • forbear some of the principal balance, or
  • extend of the length of the loan term.

In case of Fannie Mae and Freddie Mac Flex Modifications

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If Fannie Mae or Freddie Mac own your loan, you might qualify for a Flex Modification, which is a special loan modification program.

How to Pursue Mortgage Modification?

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In order to pursue a Mortgage Modification, you usually have to submit an application to your servicer, along with certain documents, like recent pay stubs and bank statements.

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Generally, servicers make mistakes all the time when servicing loans and in the foreclosure process. A lawyer could uncover errors that you won't even notice -

  • Violation of Federal or State Loss Mitigation Laws
  • Violation of State Foreclosure Laws

In any one of the above cases, your attorney can very well assist you in getting your loan modification approved soon or getting the foreclosure stopped.

Stay Away From Predatory Lending

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Occurring amid the origination of the loan following high-interest costs, negative amortization loan structures where the central equalization stays high in spite of installments made towards it, and loan given to the elderly or outside speakers who don't comprehend the terms of the loan.+

What if the lender denies to mortgage modification?

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As a rule, you'll likewise will get some time to make an appeal. A mortgage attorney may have the capacity to help you in exhibiting why the servicer made a blunder in denying your application with the goal that you more likely to get approved for the modification in your next appeal.

So now we hope you have realized the importance of a Mortgage Attorney and the benefits of hiring them if required. Please share the post if you liked it.

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