Residential real estate is the most significant purchase most people ever make. Unfortunately, the troubled economy of recent years has played havoc with both the housing market and people’s incomes. As a result, many people in the Minneapolis area, and throughout the country, have houses that are not worth what is owed on them, or homes they simply can no longer afford.
At the Running Law Firm, our Minneapolis mortgage modification attorneys can help you get out from under the crushing burden of mortgage payments you’re struggling to make, while working to minimize the negative impact on your credit and your financial future. While there are always some consequences to the inability to make mortgage payments on time, we will work with you and your lender to try to protect you as much as possible.
The attorneys of the Running Law Firm begin work with every client by carefully listening to their financial concerns and goals. This is especially important when a decision about how to handle a mortgage is on the table. How we proceed depends upon the initial question of whether or not you want to try to keep your house.
If keeping your home is the goal, we will explore the possibility of mortgage modification. A mortgage or loan modification is an agreement between the borrower and the lender or mortgage holder. This agreement modifies the terms of the promissory note secured by the mortgage, making the repayment terms more favorable to the borrower. This may be accomplished by a combination of lowering the interest rate, extending the term of the loan, and allowing payments currently owing to be tacked onto the back end of the loan.
There are different types of loan modification, and a variety of different requirements that must be met for each. We can help you understand the often-confusing eligibility requirements and decide if, and what type of, mortgage modification is best for your needs. We will be at your side throughout the process, making sure documents are properly prepared and regulations complied with.
If you prefer not to hold on to your house, or are concerned you will not be able to pay your mortgage even with a loan modification, a short sale might be a better option for you. In a short sale, the mortgage holder may agree to accept less than the amount owed and to release the mortgage in exchange for receiving whatever amount the house sells for.
The mortgage holder must consent to the sale, and will have terms that must be satisfied in order for consent to be granted. We work to make sure you are informed and protected throughout this process, including making sure the mortgage holder releases any remaining claim against you.
If you are interested in learning more about loan modification or short sales, or other options for bringing your financial situation under control, contact the Running Law Firm for a consultation at 612-279-2660. We look forward to working with you.