Top 5 Benefits Of Using A Loan Modification Attorney

By Author: Joel Jacobi
Total Articles: 83
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If you are concerned about your home mortgage loan, a possible foreclosure, or even just overall financial hardship, you should first take solace in the fact that a loan modification is a realistic means of navigating these tough times. A loan modification can make your monthly mortgage payment affordable, which can not only help you keep your house, but also help you with your overall budget. However, keep in mind that not all loan modification programs are created equal, and there are some significant benefits to using a loan modification attorney, rather than some other third-party organization.

1. Attorneys Have the Right Experience

First of all, an attorney is superior to any other professional for your loan modification because of practical experience. Most attorneys can negotiate, argue, and arbitrate tough issues because that's all part of their job description. Add to that the fact that lawyers must be able to read dense contracts and legalese, and you start to understand where an attorney can really be of use in negotiating a modified loan.

2. Attorneys Can Sue

Never underestimate the ...
... weight that a simple J.D. carries in any dispute. There is a sense of power and threat associated with an attorney because of the potential for litigation. Even as an individual, if you are involved in a situation with attorneys, you tend to watch what you say and do much more. Even if a lawsuit is an unlikely eventuality, your mortgage company or lender will probably be more willing to cooperate with and consider a proposal that an attorney has submitted.

3. Attorneys Know the Law

There are almost always obscure laws out there related to all sorts of situations, and this is one place where an attorney can give you an edge. However, what's even more important is the fact that an attorney thoroughly understands the applicable laws, and can comb every inch of your loan to make sure there isn't anything fishy. Because of this possibility, a lender is much more likely to concede to an attorney who is intimately familiar with what laws such as the Truth in Lending Act actually say, rather than a homeowner or third-party company without legal expertise.

Homeowners need to understand the difference between the trial and permanent modification. At my office, we have a department that follows up on the paperwork that is needed to complete the trial modification. Banks always want documentation after the trial period is up to make sure the borrower will be able to make payments in the future, says, Joel Jacobi, Managing Attorney at American Residential Law Group.

4. Response Time

The other great thing about going for a loan modification attorney is that you will get everything accomplished more quickly. A lender will feel greater pressure from an attorney who has sent a modified loan proposal, as opposed to someone without comparable clout and qualifications for negotiating. The sooner a lender can satisfy a customer who's hired an attorney, the sooner the lender can breathe easier, knowing that a potential lawsuit or investigation is no longer on the horizon. This is their motivation for engaging in a speedier loan modification process.

5. The Cost Can Pay for Itself

Some loan modification programs require upfront fees, and others take a percentage of the modified loan as compensation, but the bottom line is that you are investing in a lower payment and the ability to keep your house. A successful loan modification means you keep the equity you've built up in your home so far, and you can afford to stay in your house for less money each month. The extra help that an attorney can give you in securing an acceptable modified loan should easily justify the cost.

The American Residential Law Group is a highly regarded law firm providing client-focused, interdisciplinary services that result in high-value legal counsel for our clients. Managing Attorney, Joel Jacobi, is an industry leading loan modification attorney.