anyone considering a loan modification needs to ensure that they budget correctly and fully understand the terms of the new mortgage agreement so they do not face the same dilemmas that they had in the past.
Phoenix, AZ (PRWEB) March 26, 2009
Many Arizona homeowners are considering loan modification as a way to avoid losing their homes. A loan modification is an agreement negotiated between a lender and borrower in order to change the terms of their mortgage loan. Arizona Loan Modification Attorney Kevin Harper encourages homeowners to look into a loan modification program as soon they discover that maintaining their current mortgage is a hardship.
Because of excessive amounts of adjustable rate and subprime loans issued in recent years, and the general downturn in the economy, foreclosures have become widespread and Arizona is one of the hardest hit states. Depending upon the situation and the homeowners goals, loan modification, bankruptcy, short sale or deed in lieu of foreclosure are some ways to avoid foreclosure. Mr. Harper stresses that as all situations are different it is best to discuss individual cases with an experienced attorney to determine what the best course to follow is.
A loan modification can involve changes made to terms such as payments, rates and/or delinquency fees. The lenders have an incentive to avoid foreclosure and to negotiate future payments that will allow owners to stay in their homes. "Generally speaking, loan modification is a good option for homeowners who want to keep their homes and who have a steady income. Once the loan modification agreement has been made, it is up to the homeowner to make payments on the new mortgage as they are due," states Mr. Harper.
As with most legal matters involving real estate agreements and large loans, there are risks involved with a loan modification. Mr. Harper states that "anyone considering a loan modification needs to ensure that they budget correctly and fully understand the terms of the new mortgage agreement so they do not face the same dilemmas that they had in the past." An attorney can help you asses these risks and can protect your interests. An Arizona Attorney will also help homeowners determine what tax implications they can expect and what effect the loan modification will have on their credit. The sooner a homeowner consults with an attorney the more chance there is for a successful loan modification, possibly even reaching an agreement before foreclosure papers are served.
About Harper Law PLC - Harper Law is an Arizona law firm helping individuals and businesses from throughout Arizona resolve disputes since 2004. The Firms practice focuses on real estate, business, and employment litigation with experience handling a wide variety of civil litigation matters. Individuals interested in obtaining more information or scheduling a loan modification consultation with Harper Law should call 602-256-6400 or visit the Firm's websites at HarperLawArizona.com and ArizonaLoanModificationLaw.com.