For all homeowners that are struggling, getting a loan modification sometimes might seem like a way out of the struggles but for some, the story isn’t always the same as the new rates that have been modified can also be too high to pay for. This is very much possible if the financial disaster lingers on for long and this is why we have been getting questions like how many loan modifications are you allowed to apply for. If you are looking for answers to this question then we urge you to continue reading this article as it contains answers for you.
Getting a second or third mortgage modification option is what you would be thinking about if you ever find yourself in this financial crisis but truth being told, the answer to how many loan modifications are you allowed clearly has no answer. This is because it depends from one lender to another lender but theoretically, there isn’t any limit to how many loan modifications a homeowner can get as far as the lender is in support of it. Even though getting a second or third loan modification might not be easy, it is also very much possible.
If you hire the services of an attorney who has experience in loan modifications then you can have a better understanding of what is required of you and also convince your lender that you can meet up with your payments if you are granted another loan modification.
How Many Loan Modifications Are You Allowed
You should be familiar of the basic processes involved in getting your mortgage loan modified if you have modified it before. The process must have involved sitting down with the bank official under the supervision of a bankruptcy court and also in presence of a mediator when discussing the terms and agreement of your mortgage. Having a different interest rate, less debt and also lesser payment amount might be what the new agreement contains and at that time, both parties agreed that they would be easy for you to meet up financially and keep your home.
However, this doesn’t take away the fact that circumstances might still change and there are number of factors that can make a homeowner not meet up with his loan payments eve after they have been modified. Some of these factors includes;
- Going through a serious paycut
- Losing ones job
- High medical bills as a result of a serious illness or injury
- Unexpected death of a family member
- Loss of property that might arise due to natural disaster or car accident
It would be clearly impossible to meet up with your modified payment loans if any of these factors strike and in most cases, it is also easy to understand that any of these circumstances is more than enough to throw a homeowner off balance. Working with an attorney to convince the lender that making some extra modifications would help you pay back what you are owing then getting your loan modified is possible and also securing your home is possible as well.
Getting Your Lender To Cooperate
Trying to convince your lender to modify your mortgage loan for you is the hardest part in getting your mortgage loan modified. If it happens that you could not meet up with your initial modified mortgage agreement and you end up having new financial challenges, the lender might be tempted to give up on you and this would lead to the foreclosure of your house. It would require serious convincing to get the lender to modify your loan terms again or even for you to meet with another mediator.
This is the point where you would really need the services and experience of an attorney because he would be able to make strong arguments, defend you aggressively and make sure that he helps you in getting your loan modified so you can be able to keep your home. Going through this process alone isn’t healthy and could be very demanding for any homeowner. You need an attorney that would be able to create options which would convince the lender not to give up on you but modify your loan terms once again.
What really needs to be done is convincing the lender that there is still a steady source of income and that if a modified payment plan can be made then you would be able to meet up with the pending payments and keep your home. Proceeding to bankruptcy court to contest the foreclosure of your home is the only option you have left if you are not able to convince your lender to modify your mortgage loan payment plan.