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Home Loan Modification Basics


There may come a time in your life when money is tight and you find yourself struggling to pay your mortgage. Rather than going into default and facing foreclosure, there may be other options you should pursue if you have a history of late payments on your mortgage. A loan modification can help you save your home and leave a few extra dollars in your pocket at the end of the month.

What is a Loan Modification?

A modification to the loan is a change to the initial terms of your mortgage. Loan modification is usually the result of a financial hardship. With a modification, you can reduce your mortgage payment.

Loan modifications are similar to refinancing. After a loan modification, you will receive a new interest rate, payment amount and the terms of the loan are more favorable for you.

If you’re facing foreclosure, a loan modification may be a way to keep it from happening. A loan modification may also help prevent your credit from suffering as much as it would if  you foreclosed on the home. Below, we will show you how you can get a loan modification so you can stay in your home.

How do I Get a Loan Modification?

You must qualify for a loan modification. Each lender will have its own guidelines, so it’s important to understand them or hire an experienced loan modification attorney who is familiar with your lender’s guidelines.  In some ways, the modification process is very much like applying for a new mortgage from your lender.

In order to qualify for your modification, documentation is necessary. The documents that your attorney and loan servicer will want to review include the following:

  • Income related documents such as pay stubs and W-2s
  • Budget spreadsheet to show your monthly expenses
  • Bank statements to show your spending habits
  • Tax payments to show financial responsibility

While these documents are not a complete list, they will help to start the qualification process. The goal is to show that you have a real hardship or a change in financial status that’s causing you to fall behind on your payments and make the payments late, instead of when the payments are due.

It is important to note that in order to qualify for loan modification, you must have missed three consecutive payments or at least 90 days delinquent on the loan.

How Can A Loan Modification Attorney Help Me?

The loan modification attorney can submit the paperwork on your behalf and negotiate with your lender. With a knowledgeable West Palm Beach loan modification attorney by your side, the attorney can negotiate better terms and prevent a foreclosure from happening during the loan modification process.

Since the loan modification process is complex and requires plenty of documentation and time, it is best not to enter into this process alone.

Get Help with the Loan Modification Process Today

If your mortgage payments are consistently late and you’re considering applying for a home loan modification, contact the West Palm Beach loan modification attorneys at Kelley Kaplan & Eller. We’ll help you navigate this difficult time in your life and work with your lender, handle the paperwork and help you stay in your home. For a no obligation consultation, contact our firm at 561-264-6850.


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