Loan Modifications

Owing a home is one of the hallmarks of the American dream. That dream can turn into a nightmare if you are plagued by financial trouble like losing your job, taking a pay cut, or suffering from a long term injury that prevents you from working. Losing your home to foreclosure can be a devastating experience but there are options available for homeowners who are struggling to pay their bills. If you find yourself facing mortgage payments each month that you cannot afford, loan modification might be right for you.

Loan modification is a process in which the original terms of a loan are permanently altered and then agreed to by the lender and the buyer. There are a variety of loan modification plans available including in-house plans, structured by and through your lender, and a federal plan called the Home Affordable Modification Program (HAMP), which is a part of the federal government's Making Home Affordable Initiative (MHAI). HAMP was introduced in 2009. Americans struggling to pay their mortgage can restructure their mortgages to make their payments more affordable. Over 110 major lenders have now signed onto this federal program and HAMP now operates as standard practice for institutions analyzing whether an applicant can qualify for modification.

Loan modification is one of the most powerful tools home owners can utilize if they are facing default on their mortgage and they want to keep their home. Loan modifications can help you in many ways.

• It can lower your monthly mortgage payment.
• You can avoid foreclosure.
• You'll be able to keep your home.
• It can help you effectively cope with financial hardship.
• It is less damaging to your credit than a foreclosure sale.
• It can lower your interest rate.

A key factor in obtaining a loan modification is a documentable financial hardship. This could be anything from unemployment that has lowered your household income to increased costs (for instance, medical bills that you paid out of pocket).

Hiring an experienced attorney is a sound strategy to plan and implement a loan modification that could lower your payments and give you peace of mind. Lawyer John M. Kenney offers free consultations regarding loan modification. Mr. Kenney will listen to your questions and concerns and will provide you with the information and advice you need during mortgage difficulties. To schedule a free consultation regarding your Pennsylvania or New Jersey bankruptcy case, please call (215) 547-3031, email jmk@jkenneylaw.com, or fill out and submit our online Contact Us form.