As a result of the housing crisis, the high costs of foreclosures, and governmental intervention, lenders for their own business interests are motivated to work with borrowers to negotiate modified mortgage loan terms in order to minimize foreclosures. A loan mitigation is an adjustment of the interest rate, length, monthly payment amount, or balance of a borrower’s mortgage loan in order to make the loan more affordable and lessen the likelihood of foreclosure. Depending on the lender, loan mitigations are possible for all types of loans.
The Loan Mitigation Process
While every lender has different requirements, generally lenders require a borrower seeking a loan mitigation to provide certain financial information and an explanation, in the form of a hardship letter, of the reasons why the borrower became delinquent. Voelker & Associates, P.C. will assemble, analyze and present the required information in a clear and concise manner to the client’s lender and diligently negotiate with the lender in an effort to obtain the best available modified loan terms.
Exercise Caution Regarding Loan Mitigation Companies
There are many loan mitigation companies in the market. While many of these companies are legitimate, unfortunately many are not. Additionally, many loan mitigation companies are not owned or controlled by attorneys and are therefore prohibited from providing legal advice.
Further, it is important to note that no one, including Voelker & Associates, P.C., can promise a borrower a particular outcome. It is possible for a borrower to retain and pay for legitimate loan mitigation services or the assistance of counsel, and not achieve the hoped-for outcome. Borrowers should therefore avoid those loan mitigation companies who make guaranties or promises of success.
Unassisted Loan Mitigations
As is the case with other areas of a borrower’s business and financial life, there is no legal or lender requirement that a borrower hire a loan mitigation company or retain a lawyer to assist in the mitigation process. A borrower has the right to attempt to negotiate the modified loan terms on his or her own without assistance. However, a borrower should carefully consider the risks of attempting to negotiate with his or her lender without the assistance of counsel.
If you would like a free preliminary analysis to see if you may be a good candidate for a mortgage loan mitigation, you can click here to fill-out and submit a Borrowers Information Sheet. The Borrowers Information Sheet collects information about your gross and net monthly income, your monthly expenses, and the details about your existing mortgage loans. Voelker & Associates, P.C. personnel will review your submitted information and contact you with our opinion as to whether or not your lender would likely consider you a viable candidate for a loan mitigation.
Of course, no one can guaranty that you lender will agree to a mitigation of your loan. In order to protect your personal information, the Borrowers Information Sheet is submitted directly to our secured computer server and not via email.