Frequently Asked Questions
Q: Is my lender interested in my loan modification?
A: It is in the lender’s best interests to keep you in your home. Recent reports have shown that banks lose up to 40% of their investment when they foreclose on the homeowner. The lender has to pay for the cost of the foreclosure, necessary repairs, interest expense, and commissions and closing costs once it sells. It is a better investment for them if you stay in your home, maintain it and make payments that work for you.
Q: Will I have any tax consequences from this?
A: The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.
Q: Will this affect my credit?
A: No. The Loan modification process in and of itself does not adversely impact your credit rating. However, if you are already behind on your mortgage payments, your credit has already been affected. Our primary objective when working with you is to keep you in your home. We accomplish this by modifying the terms of your mortgage.
Q: Is there a guarantee that my loan will be modified?
A: No. Each and every homeowner’s situation is different. We do offer a Free Consultation to assess your situation and the viability of having your Loan modified. If you are not a good candidate for Loan Modification, we will let you know, and may be able to offer other possible solutions.
If someone is guaranteeing that your Loan can be Modified, be careful! Each home owner is different, and each lender is different.
Q: Why should we hire an attorney to modify our Loan?
A: An experienced attorney is in the best position to get you the best results. North Carolina law states that only an attorney can modify or negotiate debt on your behalf. Any company offering such services that is not licensed to practice law in North Carolina can’t legally operate as a debt negotiator in this state.
Please help keep the legal practice of Loan Modification honest. If you know of a company offering debt modification services in NC that is not a licensed attorney, please Contact the Attorney General of North Carolina.
Q: Can we negotiate our loan ourselves?
A: Yes. However, keep in mind that you only get one chance at modifying your loan. You want to ensure that you get the best terms possible. Our attorneys have experience dealing with big banks and other lenders. We have the experience to get you the best terms in the shortest amount of time. It is our job to keep you in your home.
Additionally, the lender will have its legal counsel prepare documentation expressing the new terms of the loan. You should have an attorney review these documents to ensure the terms and conditions are what you think they are.
Q: What are your fees?
A: We have a set fee schedule that we review with all clients during our initial meeting. Once we receive your payment, we deposit your funds into our client trust account. We then begin working on your case and deduct funds from your trust account as the work is completed. This is the same procedure we follow for all legal cases and is approved by the Attorney General of North Carolina.
Q: How do we get started?
A: The first step is for us to get a clear understanding of your current situation. We do this by gathering information from you regarding your current financial situation and mortgage information. We can do this by filling out the information on our website or by calling our office to set up a Free Consultation. Documentation will be required once we agree to move forward with the process.
Q: How long will this take?
A: Each lender is different. From start to end, the process could take up to two months depending on how fast you supply the needed information and who your lender is. Typically, a lender is amenable to halting foreclosure proceedings during this process. Our team will utilize over 50 years of real estate experience to ensure you receive the best terms in the shortest amount of time possible.
Q: What if my home is already in foreclosure?
It may not be too late. Depending on where you are in the process there is still hope. Because we are a law firm, we have the ability to possibly delay the foreclosure through the court system or by negotiating with your lender. One of the advantages of hiring an attorney is that lenders are more likely to halt the foreclosure process. This gives us enough time to modify your loan or consider other options, if needed.
