Should I Hire a Lawyer to Help with Mortgage Mediation
Foreclosure Defense Help with a Mortgage Mediation Attorney
Do you need a lawyer to help with mortgage mediation? This is a common question we get nearly every week and if you’re struggling to pay your mortgage based on job loss or some other economical setback, you might consider applying for a loan modification. You’ll need to decide if it’s worth paying for an attorney to help you with this process. You can apply for a mortgage modification on your own but many lenders may not even discuss this with you without the help of an attorney. Many lenders or banks, whoever has your mortgage, may have their own rules.
A loan modification is a permanent restructuring of your mortgage where your lender can change the terms so that it’s more affordable. They may be able to reduce the interest rate, convert a variable or adjustable interest rate to a fixed one, forbear some of the principal balance or extend the term of the loan. For instance, if you need to take three months off, they may be able to attack those three months onto the end of the mortgage.
It’s also important to know that if Fannie Mae or Freddie Mac is the one that owns your loan you might qualify for a flex modification which is a special loan program.
Typically, you’ll need to submit an application to your lender along with certain documents like pay stubs, bank statements, and proof that your income has decreased. It’s also important to contact your lender and ask them about their rulings when it comes to mortgage modification and if there needs to be a mediator.
A mortgage modification attorney can obviously explain all of the details behind this type of modification. Depending on your individual circumstances, a lawyer may recommend pursuing a modification, fighting the foreclosure, or putting the property up for sale in a short sale or deed in lieu of foreclosure. These are different options that a lawyer can definitely explain.
Mortgage modification paperwork can also be extensive. A lender can help you fill out the application, explain what documentation you need to submit with the application, and how to explain your financial hardship.
Because we are in Washington state, we have the Washington Foreclosure Fairness Act. This is specifically for Washington state and provides homeowners with an alternative to the frustrating and endless mortgage modification process. If you have a national lender they may not understand this process and may quickly disregard so having an attorney that understands the process, your rights, and how Washington homeowners are different than the rest of the country, really makes a lot of sense.
An attorney will also help you if your loan servicer violates federal or state loss mitigation laws. If they are forcing you to foreclose before 120 days after you’ve default on the loan, you need a lawyer in your court that can help enforce your rights. It’s extremely difficult to get your home back after a completed foreclosure so having an attorney on your side gives you a better chance of getting the results you want.
Give us a call today to learn more about loan modification and if you need a mortgage mediator. We’d be happy to discuss issues over the phone and move forward if necessary.
More: Will a loan modification lower our payments?
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Foreclosure Defense and Mortgage Mediation in Bellevue, Seattle and Washington State
In the following video that aired on King 5 New Day show Attorney Jonathan Smith talks about Mortgage Mediation and Foreclosure Defense for Washington State homeowners facing foreclosure on their Northwest home in Bellevue, Seattle, Federal Way, Redmond, Kirkland, Issaquah, Sammamish or Western Washington.