Michigan Loan Modification Attorneys
Michigan's declining economy and rising foreclosure rates mean some lenders are willing to work with homeowners toward home loan restructuring solutions that benefit everyone. At the same time, the new Michigan foreclosure law pushes individuals and families going through hard economic times to work out loan modifications with mortgage companies and counselors from HUD (the U.S. Department of Housing and Urban Development).
At Acclaim Legal Services, we proactively seek loan modifications through Chapter 13 bankruptcy. We have a strong working relationship with HUD counselors and mortgage companies. While we cannot guarantee that your mortgage company will agree to a loan modification, we will fight to protect your interests throughout the negotiation process as we have done for many other clients. Contact our lawyers in Southfield, Flint, Dearborn or Warren, Michigan for high-quality legal representation.
What Is a Loan Modification?
A loan modification adjusts the terms of a home loan to make payments more affordable for homeowners. Mortgage companies may agree to extend your loan or, in the best cases, reduce the amount you owe. There are also benefits to lenders; usually, a loan modification extends the length of the loan, increasing the amount of interest a homeowner pays over time.
Experienced Attorneys Negotiating for Your Best Interests
Even though there are benefits for both lenders and borrowers, loan modification is still a voluntary process. Mortgage companies can choose whether or not to enter into a loan modification agreement. They are overwhelmed with requests to modify mortgages and will even tell homeowners that they should not contact the company until they are in financial trouble (which is wrong). A bankruptcy lawyer can increase your chances for a successful loan modification discussion with your mortgage company.
Bankruptcy and Loan Modifications
Loan modifications are most often done during Chapter 13 bankruptcy. Often, people do not qualify for loan modifications because they have too much debt. Chapter 13 bankruptcy proceedings can reduce your debt and allow you to pursue loan modification. Chapter 7 bankruptcy is another way to clean up debt and improve your chances for loan modification.
Our Michigan bankruptcy lawyers have successfully reduced interest rates, changed adjustable rate loans to fixed loans and used other methods to protect our clients' financial well-being.
Modifying a Second Mortgage or Home Equity Loan
Through the Chapter 13 process, we can most likely modify your second mortgage or home equity loan to convert it to an unsecured debt obligation. This process is called "lien stripping" (link to Second Mortgage/Home Equity Loan Adjustment) Repayment is at 0% interest and most clients only pay back a fraction of the original loan based upon their income and budget. At the completion of the Chapter 13 plan, the second mortgage or home equity loan is legally removed as lien on your property. This helps to restore your home's value and equity that has been eroded in recent years due to the economic downturn. The Chapter 13 plan is also a full debt consolidation program and can assist you in reorganizing and consolidating other bills to make your budget more affordable.
Our Clients' Well-Being Is Our Top Priority
We are compassionate and personable bankruptcy lawyers. This is all we do, and our clients find comfort in the knowledge we have about the law and the options available to you. If we do not think one of our programs is best for you, we will tell you that. We have strong relationships with HUD counseling agents and we will refer you to them or to another organization that can meet your needs.
Contact our lawyers for a free consultation about modifying a bank loan today.
