Homeowners that are considering a loan modification from their lender may wonder whether or not they should hire an attorney. It depends on who you ask. Attorneys say their services can help you get a better rate and lending services believe the money is better spent on paying overdue mortgage.
Attorneys can assist homeowners in understanding their legal rights as well as negotiate with their lender. They can help complete necessary paperwork and stop a foreclosure sale. It is important to note however that a forestalled sale doesn’t guarantee a successful modification, but it could give the homeowner enough time to catch up on a mortgage payment.
Although most homeowners don’t need to hire an attorney to assist them in getting a loan modification or delaying a foreclosure sale, they may find it difficult to achieve these goals without some type of assistance.
An attorney can assist the homeowner in filing for bankruptcy to stop a home in foreclosure, or file an order to show a reason to stop the foreclosure sale. These are the main two reasons why an attorney would be beneficial to a borrower.
Though lenders and attorneys may disagree over the need to hire legal help, they do both agree that you should be extremely cautious when hiring an attorney. Ask for references and ask for an explanation of the lawyers experience in loan modification.