Loan Modification

Las Vegas Loan Modification Lawyers Can Help

In Las Vegas, North Las Vegas and Henderson, Nevada, homeowners seeking a principal reduction, elimination of a second mortgage, or other loan workout, come to a Las Vegas loan modification attorney at the law firm of Peters & Associates, LLP for a creative and effective approach to their loan modification.


What is a loan modification?

A loan modification is a process of negotiation with the lender that results in a change to the terms of your original loan. Our primary goal through a loan modification is to lower your principal balance, but there are many other ways to modify a loan as well. For instance, it is possible to lower the interest rate or re-amortize the loan, either of which can result in lower monthly payments. Also, if you have missed payments and are in arrears, it is possible to have those missed payments forgiven by the lender, moved to the end of the loan, or rolled back into the loan and re-amortized.


Why Would a Lender Agree to a Loan Modification?

If your loan amount is too high for you to afford, sooner or later you will default on the loan. When that happens, the bank’s only option is to foreclose on your home and sell it, applying the proceeds against your loan balance. But if you bought your home before the housing bubble burst, chances are that your loan balance exceeds the value of your home. The bank will have a hard time getting a return on its investment by selling the property. Every month that goes by while the bank is stuck with a property that it cannot sell represents lost revenue. On the other hand, if the bank agrees to a modification, it continues to generate a stream of revenue and will be better off in the long run.

Bankers know these facts and are willing to agree to a modification when they believe it is in their best interest. Part of our job as loan modification lawyers in Las Vegas is getting the lender to agree that your loan is a good candidate for a modification, and then negotiating the most favorable workout possible.


Legal Help for Homeowners who need Home Loan Modification in Las Vegas

The federal government has created a host of programs and incentives for banks to accept a variety of loan modifications, including principal reductions, modifications of second liens, lower payments and lower interest rates, refinances, and more. A common misconception is that banks participating in these programs are required to agree to a modification. While that is not the case, covered lenders do have an obligation to participate in the process with eligible homeowners, and we use our legal skills and resources to make sure their participation is meaningful and substantial.

If your mortgage payments or other expenses have risen beyond your means, or if a job loss, illness or injury has hampered your ability to meet you monthly payments, a loan modification may be the solution to retain your home or commercial/investment property without fear of foreclosure. In Las Vegas, North Las Vegas, Pahrump, Boulder City, and Henderson, contact the Las Vegas loan modification lawyers at Peters & Associates, LLP for a free consultation.


What is “Loan Modification”?

Much like a refinance, loan modifications make changes to your original loan in order to LOWER YOUR MORTGAGE PAYMENT. However, unlike a refinance, the changes are usually based on your income, not your credit score or home’s value. More importantly, a loan modification can actually lower the amount you owe the bank! That’s something a refinance can’t ever do. Peters and Associates can help you:

  • Lower the amount you owe the bank! (Principal Reduction)
  • Reduce your interest rate to as-low-as 2%!
  • Extend the term of your mortgage.
  • Convert your interest-only loan to a conventional mortgage.
  • Eliminate your 2nd Mortgage entirely!
  • Change your adjustable rate to a low fixed rate.

Most loan modifications include one or more of the above changes, with the end result being a lower mortgage payment!


Do I Qualify for a Loan Modification?

In most cases, P and A can modify loans even when you’ve been turned down for a refinance or if you tried to get a modification on your own and the bank denied you. Our attorneys have successfully modified more than 1500 loans, and have experience with all major banks and most of the smaller ones. Because each case is different, our attorneys provide Free Consultations. During your consult, your attorney will review your financials and use their experience to tell you whether or not you’ll qualify for a modification. If you don’t qualify, your attorney will discuss your other options. Call 702-818-3888 now to schedule your free consultation!


Can PandA Modify Loans on Rental Properties?

Yes! In most cases, Peters and Associates can modify mortgages for commercial and rental properties! Schedule your free consultation with one of our firm’s partners today by calling 702-818-3888.


Should I Modify My Loan or Short Sell My House?

Why not do both? At Peters and Associates, we understand that a lot of homeowners only want to keep their home if they can get the bank to reduce their principal. That’s why we’ve pioneered the All-in-One Program. If you’re on the fence about whether to modify your loan or short sell the property, click here to learn more.

To contact Peters and Associates via email, please click here.


More Loan Modification FAQs

Q. Will I get a principal reduction?

A. That is one of our goals. If we can eliminate a second mortgage, that is a principal reduction. We have many tools at our disposal to settle second mortgages, and that is generally where we focus our principal reduction efforts. We may also achieve a principal reduction on your first mortgage. Although we have negotiated substantial principal reductions on many first loans, we cannot guarantee specific results.

Q. What is lien stripping?

A. A home mortgage acts as a lien, or encumbrance, on the home, meaning that the loan is secured by the property. However, when the amount owed on the primary mortgage exceeds the value of the home, the holder of the first mortgage is undersecured, and the holders of any second or third mortgages are basically unsecured. It is possible, in that case, to strip away any unsecured junior liens through a bankruptcy or negotiated settlement.

Q. What is a cram down?

A. When the amount owed on the mortgage exceeds the value of the home, it is possible to “cram down” the outstanding balance to the level of the home’s current market value through a bankruptcy. Cram down is another way of describing a principal reduction.

Q. What is bifurcation?

A. Where the mortgage is undersecured because the amount owed is greater than the value of the home securing it, it may be possible to bifurcate the loan. Bifurcation basically splits the loan into two loans, with a secured loan up to the value of the home and an unsecured loan covering the remaining balance. An unsecured debt may be discharged by a bankruptcy, subject to a debt settlement, or otherwise removed through the loan modification process.

Q. What Happened to the Housing Market?

A. Home values over the last decade rose at an unprecedented and unrealistic pace. In order to make these overpriced homes affordable, banks offered loans with low “teaser” rates that would later adjust, and readjust, with the interest rate climbing higher and higher. As people began to build equity in their homes, they were able to obtain second mortgages and home equity lines of credit (HELOCs) to generate disposable income to pay other bills. When the housing bubble finally burst, home values plummeted, and homeowners found themselves upside down or under water with their home loans, owing more on the mortgages than the home was worth.

 

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