Houston, TX Loan Modifications Lawyer

Mortgage Modification Attorney Serving Houston, TX

The consensus is that interest rates on home loans are incredibly high, housing prices are nearly impossible for many working families to pay, and there is a significant risk of taking on a mortgage you cannot keep up with. Considering how difficult the housing market is for buyers and new homeowners, it is easy to see why loan modifications are becoming highly sought-after. If you have found yourself in a situation where you cannot keep up with your mortgage payments, there may be a way to avoid losing your home.

The Fealy Law Firm, PC is experienced in working with people who are facing insurmountable debts of all kinds. Attorney Vicky Fealy will work to keep you in your home and modify your mortgage payment structure in order to avoid a potential foreclosure. Our goal is to help you remain a homeowner despite the challenges you may be facing right now. Anything from an unexpected illness or injury that keeps you from working to surprise layoffs at work can interfere with your ability to consistently pay the full amount of your mortgage. We are experienced in helping our clients achieve this form of debt relief.

Types of Loan Modifications

There are several ways to restructure a mortgage to make it affordable for your family. Possibilities include:

• Reduce the interest rate - The principal of your loan may be completely manageable for you, but the interest rate may be causing your monthly payments to exceed the amount you can afford to pay. Lowering your interest rate can lead to reduced monthly payments and a lower overall cost.
• More time to pay - Extending the length of your repayment schedule can lower your monthly payments. For example, if you have a 15-year mortgage, you may be able to convert it to a 20-year mortgage. Although this does mean that you will make payments for a longer period of time, each payment will be lower.
• Change to a fixed interest rate - Adjustable-rate mortgages can mean that the amount of interest you pay monthly may suddenly go up drastically, pushing you over the limit of what you can afford. Your attorney may be able to negotiate with your lender to convert your home loan to a fixed interest rate. This makes payments more predictable and prevents unexpected spikes in your monthly payments.
• Reduce the principal - Although this strategy is less commonly used due to lenders' reluctance to waive a portion of what borrowers have agreed to pay, the principal on a home loan can sometimes be reduced. In most cases, a skilled attorney will need to negotiate on your behalf to achieve this form of relief.

Although a loan modification may affect your credit score, a foreclosure would do far more damage. If you are at risk for foreclosure, pursuing a loan modification may be the safest option.

Proving a Hardship to Qualify for a Loan Modification

In most cases, you will need to show your mortgage lender that you are experiencing a current financial hardship before they will offer a modification. Types of financial hardship that may prove your need for a loan modification include:

• Death of a family member - If you have relied on a family member's income, their unexpected death can create financial hardship.
• Loss of a job - This is especially true if you were laid off or otherwise dismissed through no fault of your own.
• Illness or injury - If you sustained a serious injury or developed a major long-term illness like cancer that is keeping you from working, your lender may recognize that these circumstances are out of your control.
• Divorce - The choice to end your marriage can heavily impact your financial situation. Instead of having two sources of income to pay for your house, you may suddenly be struggling to make payments alone.

Attorney Fealy will personally assess your situation and help determine whether your hardship may qualify you for a loan modification.

Contact a Houston Mortgage Restructuring Lawyer

The Fealy Law Firm, PC is dedicated to helping homeowners with mortgages remain in their homes during periods of hardship. Attorney Vicky Fealy will do all she can to help you get the loan modification you need. Contact us at 713-526-5220 to begin a free consultation.