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Loan Modification Resources
- Benefits of Hiring a Lawyer & The Loan Modification Process
- Can I Get a Mortgage Modification Even if I Have a Low Credit Score?
- What Qualifies as a Hardship for Purposes of a Mortgage Modification?
- What Information Will I Have to Provide to My Lender When Applying for a Loan Modification?
- What Legal Options Do I Have Other Than a Loan Modification?
- How Much Can I Expect to Pay After Receiving a Loan Modification?
- More Loan Modification Articles
What Legal Options Do I Have Other Than a Loan Modification?
In the wake of the recession and real estate meltdown, many lenders began offering mortgage modifications, which ease monthly payments so homeowners can remain in their homes and avoid foreclosure. But what are your options if you don't want a loan modification or can't qualify for one?
Alternatives to Mortgage Modifications
First, it's important to understand that not all homeowners are eligible for a loan modification. Typically, you must be able to demonstrate one of the following:
- That you suffered a financial hardship that has left you unable to pay your mortgage in full each month
- That your home is under water, meaning the balance of your mortgage is more than the value of your home
- That you are locked into a high interest rate and are unable to refinance your mortgage
Even if you don't qualify for one of the government-endorsed loan modification programs, you should still contact your lender to see if they offer any alternative mortgage modification programs.
If you don't qualify for any loan modification programs, you may be relegated into a more traditional option:
- Remain in your home with your current mortgage
- Remain in your home and refinance your mortgage at a lower interest rate
- Sell your home, even if it results in a short sale
- Allow the bank to foreclose on your home
Your mortgage modification attorney can help you understand all of your legal options.
Visit LawyerLocator to learn more about loan modification law or to locate a loan modification attorney in your area.