There are few life events more stressful than facing foreclosure on your home. As a real estate lawyer, I've worked with many clients in this situation and know the havoc it can wreak on people's lives.

When it looks like they could lose their home, my clients often ask me about any options that might be available to help. Loan modification options can be a lifeline for many of my clients. In this post, I'll share what I tell clients to help them navigate their options and avoid foreclosure.

What is a loan modification?

A loan modification is a change to the terms of your existing mortgage loan. It is intended to make your monthly payments more affordable by either reducing your interest rate, extending the term of your loan, or changing the type of loan you have. The goal is to help homeowners struggling to make their mortgage payments avoid foreclosure.

What types of loan modifications are available?

Several types of loan modifications may be available to you, depending on your circumstances. These include:

• Interest rate reduction: Your lender may be willing to reduce the interest rate on your mortgage loan to make your monthly payments more affordable.
• Term extension: Your lender may be willing to extend the term of your mortgage loan, which would lower your monthly payments.
• Principal reduction: In some cases, your lender may be willing to reduce the principal balance of your mortgage loan to make your payments more affordable.
• Forbearance: Forbearance is a temporary suspension of your mortgage payments. This option is typically available to homeowners experiencing short-term financial hardship.
• Loan refinancing: Refinancing your mortgage involves obtaining a new loan with better terms, such as a lower interest rate or longer repayment term.

In my next post, I'll discuss how you get a loan modification and some specifics on the process. This is a complicated process. If you're facing foreclosure and considering a loan modification, you need help from an experienced real estate lawyer. The legal team at the Law Offices of Melvin Monachan is ready to help you. Contact us today online or at (347)389-1682.