Massachusetts Legal Blog

What is the Mortgage Modification Process in MA

Mortgage Modification Laws in Massachusetts

It can be a difficult and confusing time when you want to avoid foreclosure and stay in your home; yet you are struggling and feeling certain that meeting your mortgage obligation will continue to be a hardship. Some people may feel hopeless, overwhelmed and desperate for help. For those in this very situation, the acquisition of a mortgage modification can mean the difference between keeping your home and being without one. While refinancing may have been the most common way to lower payments for homeowners, for those hit hard by the recession, late mortgage payments or a low credit score may keep that option off of the table.

What is a Mortgage Modification?

A mortgage modification is simply a modification to the original terms of a mortgage. The lender can do a number of things to modify the original terms. Those actions commonly include the following options:

• Lower the current interest rate
• Lengthen the loan period
• Change from a variable rate mortgage to a fixed rate

The process of obtaining a loan modification can be both complicated and lengthy. It is also up to the lender to evaluate your situation and decide if modification is applicable. Before venturing into the long process of applying for a loan modification, there are a number of things homeowners should know and consider. Knowing all of the facts about the mortgage modification process and the implications is imperative.

Having a mortgage modification attorney guide your decision and help you navigate the complexities of the process can make it smoother and increase the likelihood of success. An expert can analyze your unique situation and advise you on the best course of action. There are some aspects of mortgage modification that every homeowner should consider and understand before accepting the terms of a modification from a lender.

Some important items of information to analyze and understand are as follows:

• The most up to date balance of the mortgage loan
• The current interest rate of the loan
• The current term of the loan
• What the monthly payment is now and what it will be after a modification

It is vital for homeowners to weigh their options. Having all of the information, such as the long term costs compared to their current mortgage agreement, the actual new payment with taxes and insurance factored in, and the long term plans you may have for the house, is vital before proceeding with a mortgage modification. The good news today is that lenders are typically more than happy to work with homeowners; however the entire process is still complicated and can take a long time to bring to fruition.

An expert mortgage modification attorney can sit down with you and help you understand all of the numbers, the long term ramifications and the overall process of filing and qualifying for a modification. Legal guidance can cut through the complexities of government programs and also negotiate with lenders. With the end goal of saving your home and keeping a roof over your head for you and your family, it’s important to seek the advice of an experienced attorney before another month of missed payments build up and more anxiety about the future grips your household. A mortgage modification expert can ensure you have the most up to date and relevant information to help you reach the most beneficial outcome possible.

By Anna Shapiro