Should You Represent Yourself in Foreclosure Defense?
 



If you are struggling to pay your mortgage, there are some things you can do on your own to avoid foreclosure or pursue another option. For example, you may be able to apply for a loan modification to make your payment more manageable or sell your home through a short sale with the help of a real estate agent. But fighting a foreclosure in court is not one of the procedures that lend itself to self-representation.

Your Loan Mod Was Denied…Now What?
 

Was Your Ratio Correct?

 

If you believe you were eligible for a loan modification, but didn’t know your DTI (debt to income ratio) or NPV and the optimal way to structure these ratios for your lender, then you were setting yourself up for failure from the get-go. If you’re unsure about how to structure these figures, then it’s best for you to hand your loan modification over to a negotiator who can handle the process for you. An experienced loan modification representative can help you restructure the way your financial situation is presented to give you your best chance at a great loan modification.





 

What Are the Benefits of a Loan Modification?
 

Loan modification can change one or more of the terms of your loan to provide relief if you are financially stressed by the coronavirus pandemic or otherwise. Modifications can include:
 

    Reducing your interest rate
    Changing a variable interest rate to a fixed one
    Extending the term length


The extended loan term compensates the lender for the reduced interest rate or payment. So your 30-year mortgage might become a 40-year one, Broeker says.
 

But in exchange you'll get:
 

A reduced payment. If you can reduce your monthly payment, it could be just the relief you need to pull through tough times.
 

A chance to keep your home. Banks prefer to avoid foreclosure because it's an expensive process. The best outcome for the homeowner and the bank is a loan modification to make continued payments possible.