The Beginner’s Guide to Connecticut Loan Modification

The recent economic troubles in the U.S. have led to a whole load of homeowners facing troubles with their mortgage payments, foreclosure, and even bankruptcy.  Here in Connecticut, we aren’t immune to these troubles.  For the average Connecticut homeowner, the goal is very simple:  keeping their home.

One of the ways to keep your home is through a loan modification.  What is a loan modification?  It could be defined as a negotiation between a lender and debtor to reach certain financial goals.  The lender has a goal of recouping the most money out of the situation as possible, while many debtors need to simply re-structure a mortgage to pave the way for lower payments.

Why a Loan Modification Can Mean Avoiding Bankruptcy
 
The average Connecticut homeowner might have a variety of reasons for loan modification.  Whether they’re re-structuring the timing of the mortgage or simply looking to lower their payments, it always pays to stay educated and empowered.  Staying in touch with a solid Connecticut real estate attorney is the first step.

Education and homeowner empowerment will help you understand your options, but that doesn’t always mean your options will be perfect.  If you have an adjustable-rate mortgage, you should be able to retain a greater amount of flexibility.

Research has shown that loan modifications executed by an attorney end up with significantly lower rates and better terms.

What’s most important?  Acting quickly!  If you want the most flexibility possible, your most valuable asset will be time.  It’s time to seek out help if you’re already struggling to make your payments each month, as these problems could be symptoms of deeper financial mistakes you might not be aware of.  If you don’t make a payment for a few months in a row, you will probably see your home enter foreclosure, which can lead to filling bankruptcy in order to protect your finances.

That’s why you’ll want to consider contacting The Seymour Law Firm as soon as you start having problems.  They can help you with options and more effectively negotiate your loan modification or loan mitigation.  The longer you wait the more risk you take on.

Getting Started with Loan Modification

What do you do once you’ve decided to seek the help of an experienced real estate lawyer?  If your lawyer has advised seeking a loan modification, be sure to ask for real, actionable steps you can take today in order to get the ball rolling.  A loan modification will usually require an examination and proof of your monthly budget – including expenses and income – that the lender will need to see.

Looking at your budget should give you a clearer picture of why you need a loan modification in the first place.  A sudden setback in income – such as a family member losing a job – is something you’ll want to keep track of, so be sure you record the date your family member lost their job. 

Overall, remember that your lender will initially want you to make the payments as you both agreed, but ultimately want to make sure that a loan is as completely paid off as possible.

Going with an experienced Connecticut real estate attorney should be considered an essential – remaining in-state means that you have a lawyer who knows the local and state laws that govern loan modification.  The most important thing, however, is that you take action as soon as possible.

Call the Seymour Law Firm now at 203-924-6700