Loan modification typically refers to the changing of a mortgage’s monthly payment amount. It can involve a reduction or increase in the payment or interest rate, or it can entail changes to the mortgage type. A loan modification is often done if a borrower can’t afford their monthly payments. However, violations of the modification’s terms can lead to legal issues and foreclosure. Below, borrowers can learn how a loan modification attorney in Silver Spring can help them resolve a dispute.
Common Disputes During Loan Modifications
These disputes are quite common because there are many legal factors to consider. Some of the most common disputes include those listed below.
- Unauthorized rate increases. There may be disputes as to whether the lender had permission to increase the monthly payment.
- Failing to pay. A modification is usually given because a borrower can’t make their payments. However, if they continue to not pay, they could be sued for a contract breach.
- Loan fraud. The use of misrepresentation or deception is illegal. Knowingly concealing important information from a borrower can lead to criminal penalties for a dishonest lender.
- Coercion. A lender cannot use threats of force or harm to convince a borrower to agree to a modification
Confusion over modification and mortgage terms can usually be resolved through a review of the documents signed by the borrower and the lender that state the loan’s original terms as well as changes made. However, if the issues aren’t clarified, the parties may have to hire a loan modification attorney in Silver Spring. Legal remedies depend on certain factors, such as state law, the loan’s original terms, and each party’s financial background.
Is It Necessary to Hire a Lawyer for Loan Modification Help?
A loan modification can provide benefits to borrowers and lenders alike but can also be a source of contention. If a person is involved in a legal dispute over a loan modification, they may want to consult a loan modification attorney in Silver Spring for advice, legal guidance, and courtroom representation. Visit Law-margulies.com to find out more about the firm’s services or call today to set an appointment.
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