Mortgage Forbearance & Loan Modification

What Happens When Your Mortgage Forbearance Ends?

Have your finances been hit hard by COVID?

Did you stop paying your mortgage payments as a result? 

You may have received a forbearance under the Cares Act so you could stop paying your mortgage for a period of time. Forbearances have been an extremely helpful tool that have stopped many people from losing their homes during the pandemic. 

But if you’ve used a forbearance, now is the time to develop a plan for how you will stay in your home once the forbearance ends. Pretty soon, you’ll be required to repay your mortgage lender for the payments you missed – if you want to keep your home. 

Soon, most people who utilized a forbearance will need a loan modification.

Options For Loan Modifications

There are a many possible options for loan modifications: 

• Paying a lump-sum balloon amount at the end of your mortgage. 
• Extending the number of years (and amount of interest) you’ll be required to pay.
• Renegotiating the interest rate (and monthly amount) of your mortgage.
• Adding missed payments and fees into the principal of the loan.
• Reducing the balance of the loan.
• Any combination of the above.

Which Loan Modification Option Is Right For You?

Depending on your circumstances, some loan modification options can cost you thousands of dollars more than other options. For example, take the wrong modification option and you could end up with a final lump-sum payment you haven’t saved for. Or, get a lower interest rate only to wind up paying thousands of dollars more in the overall cost of the loan.

You can negotiate a loan modification with your mortgage company yourself. Or, for less than the cost of one month’s mortgage payment, you can hire a seasoned professional to negotiate the exact terms of your loan modification on your behalf. 

At Slayton Law, We’re Your Mortgage Forbearance & Loan Modification Experts

Instead of worrying if you’ve thought about every possible option, our attorneys at Slayton Law will negotiate with your lender on your behalf and complete all required paperwork. So you don’t have to! This includes: 

• Loss mitigation forms,  
• Bank account information, 
• Tax statements, 
• Property and mortgage information, 
• Profit and loss statements (if necessary), and 
• Financial worksheets detailing your income, budget, and debt to income ratio 
• Most importantly, we will craft the required written explanation of hardship statement so it will be powerful and persuasive. 

Our lawyers know what the mortgage company is looking for. We can evaluate – based on years of experience – how good or bad your lender’s loan modification offer is, compared to the hundreds of others we’ve evaluated. We’ll work to get you the best possible deal.

The time is coming when lenders will have to be paid, one way or another.

You don’t just need a plan – you need a solution.

Call Slayton Law to talk about getting your loan modification today!

Charlottesville – (434) 201-4876

Culpeper – (540) 827-4023