Licensed Real Estate Broker

If you are facing the loss of your home, Attorney Kelbel has the knowledge concerning real estate and other complex legal issues. As a licensed real estate broker, she has the credentials to help you through this difficult time.

Loan Modifications: How They Work and What to Avoid

Over the course of our lives, financial situations can change. This can be particularly stressful when they have not changed for the better and a borrower is still locked into a loan agreement that was made a much more prosperous time in their life. For those in this particular situation and have suffered financial strain due to loss of income, divorce, illness, excessive debt—or any other reason—a loan modification may be the best option.

Loan modifications allow borrowers to negotiate new terms on their mortgage with their lender and basically amend the original terms to better suit the borrower’s new financial situation. These modifications can prevent foreclosure on your home, reduce any damage to your credit score, and make a profound difference in the lives of borrowers dealing with financial difficulties.

Common examples of modifications include:

  • Reducing payments
  • Restructuring payments
  • Refinancing the loan
  • Lowering the interest rate
  • Extending the terms of the loan
  • Rolling past-due payments into one lump sum

To be eligible for a loan modification, you do not have to have missed a mortgage payment or have a Fannie Mae or a Freddie Mac loan. Depending on the nature of your loan, you may also qualify for one of the federal mortgage assistance program. Contact our firm for more details.

Knowing What to Avoid

If you are considering a loan modification, there are some missteps you should make every effort to avoid. These inadvisable actions could not just reduce the chances of achieving a desired modification, but could result in additional, needless costs to the borrower.

When considering a loan modification, DO NOT:

  • Wait too long to apply. It's important to be in relatively good standing with your lender when entering negotiations.
  • Work with a loan modification companies. They charge hefty fees and are not lawyers.
  • Hire out-of-state attorneys. They are not licensed in Wisconsin and can lead to further complications.
  • Accept a bank's excuses concerning your application. Do not accept explanations like they "lost" your paperwork or never received it. Also watch out for "dual-tracking," which is when a bank will consider your loan application only when they are simultaneously pursuing a foreclosure on your home.

How Kelbel Law Offices, LLC Can Help

At our firm, we understand that the loan modification process can be intimidating. We successfully helped countless clients establish new terms on their mortgage—all the while protecting their rights along the way. Our firm is well-versed in handling all communications with the lender, speeding the loan modification process in your favor, and, most importantly, helping you prepare a complete and organized loan modification package for consideration.

If you think a loan modification is right for you and your mortgage, then contact us today. Our skilled and compassionate Milwaukee debt relief attorney is ready to hear from you.