A loan modification is a mutual agreement between the borrower and the lender to
restructure the terms of the loan. The primary reason most individuals consider a loan
modification is because they cannot afford their current mortgage payment, or because they are paying for a mortgage where the value of their house has decreased dramatically.
If your only reason for considering a bankruptcy filing is because of your mortgage, you should consult with a debt relief attorney who is experienced with loan modifications first. The loan modification process can sometimes be difficult and time consuming when dealing with banks.
This information is simply a small overview of the loan modification process. Since this
process can be physically and emotionally draining, it is highly advisable that you seek an experienced debt relief attorney to help guide you through the process.
Be cautious of Loan Modification Schemes!
Under new laws recently enacted in California, a consumer should never pay a non attorney upfront fees for a loan modification. Only licensed attorneys can accept funds upfront. If any non attorney asks you for money before providing loan modification services tell them no way and consult with a debt relief lawyer to assist you instead.