Call Us Now
Email Us Now
At Sigal Law Firm, we understand that financial struggles—particularly those related to mortgage loans—are a significant reason why people consider bankruptcy. Unexpected hardships such as health issues, job loss, or simply being underwater on a mortgage (owing more than the home is worth) can push individuals and families into difficult decisions.
But here’s the good news: bankruptcy might not be your only option.
Loan Modifications: A Lifeline for Struggling Homeowners
For clients who are behind on mortgage payments but not yet facing imminent foreclosure, a loan modification can provide much-needed relief. A loan modification involves amending the terms of the existing mortgage—not refinancing—so that payments become manageable.
What can a loan modification do for you?
- Bring the mortgage current by moving arrearages to the end of the loan.
- Lower monthly payments.
- Reduce the principal owed.
- Fix or reduce interest rates to affordable levels.
Why would banks agree to modify loans? Simply put, it’s in their financial interest. Foreclosures are expensive for banks, so helping borrowers get back on track benefits both parties.
However, the loan modification process can be confusing and time-consuming for individuals to navigate alone. That’s where we come in. Our experienced attorneys simplify the process, ensuring all required forms, financial disclosures, and hardship letters are completed accurately. From submitting the initial packet to working with the bank’s loss mitigation department, we guide you every step of the way.
If approved, borrowers may enter a trial period to demonstrate affordability before finalizing the modification. The result? You stay in your home with manageable payments while keeping bankruptcy as an option for the future if needed.
Short Sales: An Alternative for Unaffordable Homes
For clients with homes they can no longer afford and who owe more than the home’s market value, a short sale might be a better solution.
In a short sale, the mortgage lender agrees to let the property sell for less than the outstanding loan balance and may waive the remaining deficiency. This allows clients to walk away without financial obligations tied to the home.
How does a short sale work?
- Work with a realtor experienced in short sales to list the property.
- Ensure the sales contract includes language requiring the lender to waive the deficiency.
- Submit the buyer’s offer, financial documents, and a settlement statement to the lender for review.
- Negotiate with the lender if adjustments are needed, such as changes to real estate fees or minor contributions at closing.
Throughout the process, our firm ensures that every step is handled professionally and in your best interest. We negotiate directly with lenders, address deficiencies, and protect you from unnecessary liabilities.
Why Choose Sigal Law Firm?
Whether you’re considering a loan modification, short sale, or even bankruptcy, our attorneys offer tailored solutions to address your unique situation. We take the stress out of navigating these complex processes, empowering you to regain financial stability.
If you’re struggling with mortgage payments or have a home you can no longer afford, don’t wait to seek help. Contact Sigal Law Firm today at 888-77LEGAL (53425) to schedule a consultation.
We’re here to guide you through every step, helping you preserve what matters most.
