Debt settlement typically involves working with a professional debt settlement company to negotiate with creditors to whom you owe money. For example, your creditor may accept a one-time payment of 20-75% of your total debt and forgive the rest of your debt. However, loan modification changes the terms of your loan to make payments more affordable. It does not reduce the amount of money you owe the creditor.
Speak to an Experienced Mortgage Attorney Today
This article is intended to be helpful and informative, but legal matters can be complicated and stressful. A qualified mortgage attorney can address your particular legal needs, explain the law, and represent you in court. Take the first step now and contact a local mortgage attorney to discuss your specific legal situation.
To apply for an Affordable Housing Modification, you must:
• Be an owner-occupant of a property with one to four units;
• Have an outstanding principal balance that is equal to or less than $729,750 for one unit of properties (there is an upper limit of two to four-unit properties – check with your manager);
• Have a loan that originated on or before January 1, 2009;
• Have a mortgage payment (including taxes, insurance, and homeowners association dues) that is more than 31% of your monthly gross income (before taxes), and
• Have an unaffordable mortgage payment, perhaps due to a significant change in income or expenses.
If you answer YES to all of these questions, you may be eligible to apply for an Affordable Housing modification. Your administrator will be able to tell you if you qualify.
Contact an attorney for more information about your eligibility for various programs.
Speak to an Experienced Mortgage Attorney Today
This article is intended to be helpful and informative, but legal matters can be complicated and stressful. A qualified mortgage attorney can address your particular legal needs, explain the law, and represent you in court. Take the first step now and contact a local mortgage attorney to discuss your specific legal situation.
There is a modification, the so-called debtor subrogation, through which the loan owner is changed. The current debtor is replaced, always with the express or tacit authorization of the entity, by a new borrower who assumes the obligations and rights of the previous one. However, he may also add some changes to the initially agreed conditions.
For example, if we buy an already mortgaged home and the mortgage conditions are interesting, we can request a change of ownership from the bank that granted it instead of ordering a new one.
The bank may charge us a commission for the procedures involved in this modification.
