A loan modification is a mutual and voluntary agreement between you and your Las Vegas lender to change the terms of your loan. Loan modification allows homeowners and lenders to change the terms of a loan, like the interest rate and the monthly payment, or the terms are changed to reflect the current situation of the homeowner. This is legal and done with the approval of the Las Vegas lender.
With a loan modification, it's possible that a homeowner's:
- Monthly payment may be decreased
- Interest rate may be decreased
- Interest rate may be changed from an adjustable to a fixed rate
- Time the borrower has to pay the loan back can be lengthened
- Loan principal may be decreased in some cases
- Late fees may be waived
- Second mortgage could be settled or possibly even eliminated.
IS A LOAN MODIFICATION RIGHT FOR ME?
If you are facing a rising adjustable interest rate, if you have fallen behind on your mortgage or foresee falling behind on your mortgage due to financial hardship, or if you are ‘upside-down' on your loan (owing more than your home is worth), then a loan modification is probably right for you.
It is important to note that a loan modification is not a new mortgage. A loan modification is the renegotiation of an existing loan.
Our Las Vegas loan modification specialists at Vohwinkel Law will deal with your lender(s) on your behalf to modify the terms of your mortgage(s) in order to obtain a more affordable monthly payment. The two most common points of negotiation are the interest rate and amortization period. We will work with your lenders to extend the term of length of your mortgage, reduce the interest rate of your mortgage, extend an initial or “teaser” rate for a period of time or potentially all of the above, reducing your monthly payment and allowing you to keep your home.