Learn More About Your Loan Modification Options
If you are in default on your mortgage or facing foreclosure, give my office a call at 206-408-1688. I am attorney Darcel Lobo, and I can help.
A loan modification is a process of negotiation with your mortgage lender in order to revise the terms of your loan and save your home. While a loan modification may be the best option for you, at your initial consultation, I will assess all of your options and advise you on the best option based upon your financial goals.
How Loan Modification Can Help
In a loan modification, my goal is to stop any pending foreclosure activity, reduce your monthly payment and bring you back to a current status with your lender. There are various options available in modifying your loan, and I will work with you and your lender to reach a resolution for you. Loan modifications are very helpful for homeowners who are facing financial difficulties, as a loan modification may:
- Reduce your interest rate
- Provide a fixed interest rate instead of variable interest rate “ARM”
- Reduce some of your principal balance
- Reduce late fees and penalties
Once you’ve hired DAL Law Firm to represent you in your modification, you can direct all phone calls and correspondence from your mortgage lender to my office, and I will speak with them on your behalf so that you don’t have to. I have helped many homeowners save their home with a loan modification, and I would be happy to assist you as well.
Contact me today at 206-408-1688. You can email me if you prefer.
Answers To Common Loan Modification Questions In Washington
Falling behind on a mortgage can raise a lot of questions at once. You can find answers to several of them in the following section:
How long does a loan modification take in Washington state?
Most requests take several months from application to a permanent agreement. Under federal rules, your servicer generally must review a complete application within 30 days if it arrives more than 37 days before a scheduled foreclosure sale. Many lenders then require a trial period, often three months of on-time payments, before the new terms become final. Sending a complete, organized application the first time helps you avoid delays caused by missing paperwork. I also keep you updated, so you are never left guessing about where your request stands.
Will a loan modification hurt my credit score?
It may lower your score for a while, although the effect is usually milder than a foreclosure, short sale or bankruptcy. Lenders report modifications in different ways, so the impact varies from one homeowner to another. Once the new terms become final, steady on-time payments can help rebuild your credit over time. By comparison, a foreclosure can stay on your credit report for up to seven years.
Can I get a loan modification if I’m already in foreclosure in King County?
Yes. Washington handles most foreclosures outside of court, but you can still apply after the process begins. Federal rules generally prevent a sale while your servicer reviews a complete application submitted more than 37 days before the sale date. Washington’s Foreclosure Fairness Act also allows an attorney or housing counselor to refer you to foreclosure mediation after you receive a notice of default. State law also requires the notice of sale to be recorded at least 90 days before any sale takes place. The sooner you reach out, the more of these options remain available. If keeping the home is no longer possible, I can also walk you through your other real estate options.
What is a hardship letter and why is it important?
A hardship letter explains to your lender why you fell behind on payments and why your finances can now support a modified payment. Common hardships include job loss, medical bills, divorce or the death of a family member. Lenders look for a clear cause along with a realistic plan for keeping up with future payments. I help you write a clear, honest letter that matches your bank statements and tax returns, since any mismatch can slow or derail a review.
“Darcel was so fantastic. She explained the whole process to me and made me feel very comfortable in moving forward. Any questions I had she answered by email or phone in a very timely manner. I felt so relieved. She was totally professional, however I felt I had made a new friend when the process was complete. I would highly recommend her to anyone.”