Loan Modifications

Loan Modifications in North Carolina – Why Hire An Attorney?

Before the onset of the recession, the term “loan modification” was seldom heard. In my practice as a North Carolina real estate attorney, the only instance where loans were typically modified was when a construction loan was converting to permanent financing. Now, loan modifications are at the forefront of the nation’s discussion of how to heal the housing crisis. And in North Carolina, an increasing number of loan modifications are helping more people save their homes.

A loan modification is a permanent change in one or more of the terms of a mortgagor’s loan that allows the loan to be reinstated, and results in a payment the borrower can afford. A loan modification must be in writing. In North Carolina, only the home owner or their attorney can negotiate the terms of a loan modification.

Unfortunately, there are also many scam “artists” out there who are taking advantage of distressed home owners. A recent trend with these so-called “loan modification companies” is to guarantee results.   Some loan modification companies are claiming that they have a “99% success rate.” Others say they can have your interest rate reduced to 1% for the remaining term of your loan.  The truth is – no one can make you a guarantee about the outcome of a possible modification of your loan.   And many consumers are losing thousands of dollars to these fraudulent companies, and losing their homes to foreclosure.  If you have been a victim of one of these scams in NC, please report it to the North Carolina Attorney General’s Office at www.ncdoj.com or at 919-716-6400 or 1-877-5-NO SCAM.

In 2009, the Obama Administration initiated help for distressed homeowners by enacting the Financial Stability Plan. More information is available online at www.FinancialStability.gov and www.MakingHomeAffordable.gov and over the phone on the Homeowner’s HOPE Hotline – 888-995-HOPE.   Some of my clients have used these resources, but have still decided to hire an attorney to help them navigate through the process of a loan modification.   Most consumers get frustrated after a few phone calls.   It is a full time job to keep up with all of the paperwork the lender requires, and to find out where and how to submit it properly.   That is where my legal experience is helpful to my clients. After working with several lenders, I am aware of their programs and what documentation they require.   Also, I am able to prepare my clients for what they can reasonably expect as an outcome.

The assistance of an attorney is critical if your property is in foreclosure.   Attorneys can appear with you at the foreclosure hearing and possibly have the time extended before your home is ordered to be sold.   If you have already had your hearing, and your home has a sale date, an attorney can still help.   There are several methods by which attorneys can attack foreclosures, and there are still other alternatives to foreclosure that can be negotiated after the sale date.

Attorneys are most effective the sooner they are involved in the process.   We have been the most successful when homeowners have contacted us before they miss a payment.   At that point, they have not accrued additional fees and we can negotiate a modification based on their revised income information.   However, most people wait until they are several months behind, or even deep into the foreclosure process to contact an attorney.   Soboleski Law can help homeowner’s in North Carolina at any stage of the process.   Contact our office for a FREE consultation today – 828-285-8888.