Mortgage Modification and Foreclosures

In these uncertain economic times, many responsible homeowners are finding themselves unable to pay the high mortgage payments they agreed to in happier times. Fortunately, a mortgage can be readjusted at any point, whether the borrower is current, late, in default, or facing foreclosure. Foreclosure is an expensive and uncertain option for a bank to take, so it is often in the lender’s best interest to keep the original borrower.

What is Foreclosure?

Foreclosure occurs when a lender obtains a court order to deny a mortgagor’s equitable right of redemption. In layman’s terms, the bank takes possession of the borrower’s property. The downsides of foreclosure include:

• Loss of your home
• Damage to your credit report
• Damage to your reputation

However, the money made on a foreclosure sale is not guaranteed to recoup the bank’s losses, so it is generally beneficial to the bank to allow the borrower to restructure the loan.

Restructuring a Loan

If you are unable to make your current mortgage payments, restructuring the terms of the loan may allow you to lower your monthly financial burden. Restructuring can be accomplished in a variety of ways, including:

• Lowering the interest rate
• Extending the duration of the loan

Contact Us

Unfortunately, it can be difficult for even responsible borrowers to restructure their loans, and it can be helpful to contact a Maryland mortgage modification lawyer. He or she can help represent you and your interests to an impersonal bank. If you are worried about your mortgage or need reliable, professional advice, contact Chaifetz & Coyle, P.C. at 443-546-4608.