Can a Mortgage Loan Modification Help You Avoid Foreclosure?

It can be frightening if you’re having difficulty making your mortgage payments. If you’re in foreclosure on your Texas home, you’re not alone. Many people are facing financial challenges right now, and foreclosures increased significantly in 2023 over 2022. The good news is that you don’t have to figure this out alone. An experienced foreclosure lawyer, like the seasoned attorneys at Manfred Law, can help.

Advantages of a Mortgage Loan Modification

If you’re in trouble with your mortgage and having difficulty making payments, a mortgage loan modification might be helpful. An attorney can help negotiate a modification to your loan to:

• Lower your interest rate,
• Temporarily lower your monthly payments, or
• Forbear or forgive some of the earlier interest on your loan.

In some cases, your mortgage lender may be willing to modify the loan to keep you from defaulting on the loan. A loan modification can also be helpful if you have a balloon mortgage with a large lump sum payment due at the end of the loan. Your lender may agree to draw out the number of payments and the loan term to avoid default.

Potential Drawbacks of Mortgage Loan Modification

While a mortgage loan modification can sometimes be helpful if you’re in danger of defaulting on your loan, there can also be disadvantages you should be aware of:

• If your lender lowers your payment temporarily, you could end up with a large balloon payment due at the end of the temporary forbearance period.
• It will take longer to pay off your loan if your payments decrease or your lender stretches them out over a longer period.
• If it takes longer to pay off your loan, you will also pay more interest over the longer term.

If you’re already in default, it’s important to understand that your lender won’t stop the foreclosure process while you’re negotiating; that’s why it’s important to consult a Texas attorney well-versed in handling mortgage foreclosures.

You Need an Experienced Texas Foreclosure Attorney

If you’re facing a potential foreclosure in the Houston area, there’s no need to panic. A skilled foreclosure attorney like the seasoned lawyers at Manfred Law can help. Whether it’s a mortgage loan modification, negotiating with a lender, or explaining your best options, we’re here to offer advice. Call Manfred Law at (713) 547-5460 or contact them online to schedule your consultation.