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Busted! Don't Believe These Loan Modification and Foreclosure Myths

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Busted! Don't Believe These Loan Modification and Foreclosure Myths

The pressure of losing your home to foreclosure is enough to drive you up a wall and can be one of the most disheartening events a homeowner can experience. While in many cases foreclosure is avoidable, inadequate knowledge about the loan modification process prevents people from saving their homes.

Being reliable, competent and experienced legal experts, we’re going to bust three commonly believed myths that will help you understand what foreclosure is all about and how to tackle loan modification process.

Myth 1: A loan modification will prevent your bank from pursuing a foreclosure.
This is absolutely not true! Your application for a loan modification with the bank has nothing to do with the bank’s pursuing a foreclosure against your house.

The bank’s attorneys will do everything in their power to push the home into foreclosure as quickly as possible, even if you have a pending loan modification. If you are represented by an attorney, he or she should be informed that you are pursuing a loan modification so that your attorney can file various motions and defenses that can postpone or stop the foreclosure altogether.

Myth 2: After submitting a completed loan modification application, your job is done.
All too often people trust the bank will process their paperwork to approve their loan modification as quickly as possible. This is NOT true! Banks often deny receiving your paperwork or ‘lose’ them. At other times, banks will not review your paperwork for several weeks, and by the time they review it, your paperwork becomes ‘stale-dated,' requiring you to submit new paperwork.

To avoid this kind of a situation, you must find and continually stay in contact with the actual representative who is processing the paperwork for review. This prompts them to review your application sooner, and you take away any excuse for their not reviewing your application as soon as possible.

Myth 3: If you’re denied a loan modification, you won’t be able to save your home.
Many people believe that, once you have been denied a loan modification, it is game-over forever and you’ll not be able to keep your home. This is another myth! If you’re denied, you should find a qualified expert who can analyze the reasons you were denied, restructure your application, and submit it again, showing a change in circumstances. If your application is properly completed, it will be possible to qualify for a new loan modification and save your home!

Knowing the truth is one part of being prepared, the other is having the right representation. At the Divorce and Mediation Law Firm, we are committed to achieving the best possible results for you irrespective of your situation. For a complete list of our services, please click here. If you have any questions about Divorce and Mediation Law Firm, we’d love to hear from you. Contact us here.