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Stratford, CT 06614

Attorney Ben Proto - The Musings of a Mad Lawyer

Monday, July 15, 2019

Can I Modify My Real Estate Loan?

There are serious consequences for failing to pay your mortgage, including bankruptcy and foreclosure. Homeowners who are unable to make their monthly payments often believe that there is nothing they can do to remedy the situation. This isn’t the case, however. Some homeowners in Connecticut are able to avoid these negative outcomes via a program called loan modification. A loan modification alters a homeowner’s existing loan in a way that allows him or her to afford the monthly payments. Both homeowners and lenders tend to prefer loan modification to foreclosure, as it allows the debtor to remain in his or her home as the lender continues receiving monthly mortgage payments. The benefits of loan modification include:

  • Extended loan terms
  • Lower interest rates
  • Reduction of the total principal balance owed to the lender 
  • Transfer of accrued payments owed to the borrower’s loan balance
If you are having trouble making your monthly mortgage payments and would like to pursue loan modification, please review the information below and contact a Connecticut real estate attorney as soon as possible for assistance. 

How to qualify 

Loan modification in Connecticut requires a borrower to demonstrate to a lender that his or her difficulty in making timely mortgage payments was caused by circumstances resulting in financial hardship. There are a number of circumstances deemed acceptable by lenders in considering loan modification requests. Circumstances that lenders consider to be valid reasons for loan modification requests include:

  • Divorce
  • Separation
  • Incarceration 
  • Imprisonment
  • Interest rate adjustments
  • Medical problems
  • A call to active military duty 
  • Sudden reduction in income
  • Medical bills
  • Property damage 
  • Unemployment
  • Job relocation
  • Death of a partner or spouse 

Common application requirements 

If you are interested in pursuing a loan modification, your Connecticut real estate attorney will walk you through each step of the process to ensure that your lender has all information necessary to process your request. Documentation typically required when applying for the modification of a loan includes: 

  • Six months of bank statements
  • Two years of federal tax returns
  • Two months of income statements 
  • Profit and loss statement (if applicable)
  • Two years of business tax returns (if applicable)

Connecticut real estate attorney

If you are having trouble making your monthly mortgage payments, you may be eligible for a real estate loan modification. With the help of an experienced Connecticut real estate attorney, a modification of your existing home loan may help you avoid foreclosure or bankruptcy. So, if you’d like to pursue a loan modification, please contact our experienced Connecticut real estate attorney today to discuss your situation, as your eligibility for the modification of a real estate loan will be determined by your unique situation. Our experienced Connecticut foreclosure defense and real estate loan modification attorney will ensure that you understand your rights as a borrower and will keep you apprised of all of your loan modification options. Please contact Benjamin S. Proto for a free consultation.

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