A mortgage loan modification may stop foreclosure of your home. A free consultation in one of our Los Angeles or Encino offices will determine if it's right for you.

When temporary financial difficulties have caused you to fall behind on mortgage payments, there are options besides bankruptcy you can consider -- loan modification options that can stop foreclosure and let you keep your house. Several types of loan restructuring can accomplish this.

Recapitalization Agreement

One type of mortgage modification is negotiating a recapitalization agreement, and it can stop loan foreclosure. It is an agreement negotiated with the lender by which any past due amounts (missed payments, interest, fees) are added to the principle balance of the mortgage loan. It's like taking a very small second loan and adding it to the first, resulting in a higher total balance.

A recapitalization agreement requires that we demonstrate to the lender that you were temporarily unable to make payments, but that the problem has been resolved. By restoring the status of your mortgage loan to current, a successful loan recapitalization agreement will allow you to stop loan foreclosure, keep your home, continue making payments, and allow the lender to avoid the time and expense of foreclosure.

Mortgage Pay Rate Reduction

This type of mortgage loan modification is negotiated to stop foreclosure by demonstrating that you cannot afford the current monthly payments, but could make regular payments of a slightly lower amount. Here the lender agrees to extend the life of the loan and reduce your monthly payments.

This form of mortgage modification requires that we demonstrate to the lender that you have sufficient income to afford the lower rates. This might include proof of a new job, or a residential lease showing that you are now renting out a room or other portion of the property. Often keeping a loan of a slightly longer term is preferable to the lender when compared to the time consuming and expensive foreclosure process.

Early Mortgage Payoff Refinancing -- NEW PROGRAM!

At the Nader Law Firm, we are at the forefront of new developments created by lenders or Government in helping homeowners to keep their homes.

Early mortgage payoff refinancing is a form of debt settlement, and an extremely effective method of convincing your current lender to accept a payoff for less than what you owe them. This option is available before your loan triggers a higher interest payment and before you fall behind in mortgage payments. Learn more about our debt settlement options.

As with all legal options, you should seek qualified legal advice mortgage loan modification. When temporary financial difficulties are causing problems in your life, contact our bankruptcy attorney for a free consultation to explore options that can get you back on track.

NOTE: Your individual circumstances may or may not permit you to keep your house. Contact the Nader Law Firm to explore ways of avoiding foreclosure and still retain your credit.