Categories: Loan Modification

Navigating Without a Loan Modification Lawyer

Overly high loan and interest payments can ruin your financial security. But that doesn’t mean they have to stay that way. Through loan modification, you can negotiate lower monthly payments and even the actual owed amount. While Bankrate.com encourages consumers to consult with an attorney before signing any final document, this is a process you can take on your own. It may not be easy, but here are some tips to help you get through.

STARTING WITHOUT A LOAN MODIFICATION LAWYER

One of the simplest ways to make matters simpler is to gather everything involving your loan and your current financial situation. Put it into a single location and keep it organized. This should include

  • Initial loan agreement
  • Late notices
  • Tax returns
  • Other bills
  • Proof of other obligations
  • Medical bills (if relevant)
  • Income statements

Keep this in a safe location. Finding and keeping track of paperwork is one of the more stressful parts initially.

Meet or Talk with Someone

Typically, you’ll have better success if you can meet with your lender’s representative in person. Speaking generally, it’s also best to deal with the lender rather than a third party. Interest.com states that most of the time you’ll start off with the Customer Service Department. Be prepared to explain your situation numerous times before the end. When you do get the meeting or phone call, be polite and concise. Explain your situation and provide the relevant information. At this point, the lender will tell you one of three things

  • The loan modification can continue
  • The loan modification cannot continue until we have an arbiter in place
  • The loan modification will not continue because we will not budge

Continue the Negotiation Process

If the modification can continue, present your offer. Be prepared for them to want more than you’re willing to give, so plan your opening offer accordingly.

If the lender wants an arbiter, this isn’t necessarily a bad thing. Arbiters will simply make sure everything is understood and help you both come to an agreement if you hit a snag. However, if it is a binding arbitration, this will prevent you from taking the matter to court. You should also be cautious if the lender has sole say in the arbiter. Make sure you ask for a neutral party. If the lender refuses to negotiate, ask for reasons. Do this politely. Don’t get emotional or yell. You can also offer additional proof that you will be able to meet the modification terms. This entire process, no matter what the answer, may take weeks.

Get Everything in Writing

If you do succeed in getting the loan modification, get everything in writing. The lender will generally want to draw it up. Make sure you read everything. Be sure it is exactly what you understood initially. This is the point when you will most likely want to talk to an attorney.

Loan modifications can help you deal with a large debt and high payments. You can handle this on your own, but it may be time consuming and frustrating. Prepare in advance by gathering all relevant paperwork before you start negotiations. Next contact someone and work your way to the appropriate party. You’ll need to present your request and be prepared for any of the three responses. Once you do get an agreement, make sure to get it in writing.


Before you sign it though, have an attorney look over it. For this or to help you at any point through the process, having a professional can be helpful. Consider talking to the Van Horn Law Group if you need further assistance.

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Published by
Chad Van Horn

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