How Do I Get a Georgia Loan Modification?

loan modification application

Homeownership is a big part of the American Dream.  Unfortunately, unforeseen hardships often put homeowners at risk of losing homes they’ve worked so hard to buy.

If you’re a homeowner in jeopardy of losing your home due to a job loss or other financial downturn, there is help available. 

A loan modification is one option to consider. However, loan modifications are complicated and not without risk. Experienced Georgia bankruptcy attorneys advise residents about how to get a Georgia loan modification to protect their home. 

What is a Georgia loan modification?

A home loan modification is a restructuring of original loan terms to make the loan more affordable for the borrower. One or more terms of the borrower’s loan may be changed:

  • Interest rate reduction/conversion
  • Payment reduction
  • Principal reduction
  • Adjustment to the length of the loan terms

These changes may provide financial relief to struggling homeowners, but not everyone qualifies for modification. 

Who qualifies for a loan modification in Georgia?

Even in times of extreme financial hardship, most people try everything possible to avoid falling behind on their mortgage payments. Unfortunately, most banks won’t entertain loan modifications for homeowners current on their payments. 

To qualify for a home loan modification, homeowners must be suffering some economic hardship and be behind on their payments. Lenders will also scrutinize your ability to meet future payments of a modified loan.   

Documents Needed for a Georgia Loan Modification

Once you decide to pursue a loan modification, gathering essential documents is the next step. Georgia lenders demand specific documents when assessing your modification request:

Financial Statements and Reports

  • Proof of wages or self-employment income
  • Two most recent bank statements
  • Two most recent years tax returns
  • Monthly expenses statements/receipts, i.e. grocery/household, utilities, auto expenses, insurance, credit cards, tuition 

Mortgage Statements

  • Mortgage payment history
  • Current loan status

Hardship Statement

  • Job loss, pay reduction, medical expenses, or injury or death of a payer. 

Documents Supporting Hardship Statement

  • Unemployment claims
  • Pay stubs
  • Employer statement
  • Medical bills
  • Death certificate

Plan Supporting Your Future Ability to Pay

  • Documents supporting future income

You Need a Georgia Bankruptcy Lawyer for Your Loan Modification

If your home is in jeopardy due to financial hardship, you need the help of a trusted and experienced Georgia bankruptcy attorney. 

Navigating a loan modification is a complicated process, and lending institutions are not designed to support the homeowner. Many lenders will prolong the modification process, forcing homeowners who have exhausted time and resources into foreclosure. 

A qualified bankruptcy lawyer will assess your current situation and present options to help you keep your home. If you pursue a loan modification, your attorney will represent your interests, protecting you from delay tactics and unethical practices, and ensuring you understand all implications of the newly modified loan. 

Contact a Georgia bankruptcy attorney today to learn more about protecting your home with a Georgia loan modification or bankruptcy action. 

Posted in: Loan Modification