Alabama Foreclosure: Loan Modification After A Foreclosure
Alabama Foreclosure: Loan Modification After A Foreclosure.
Getting a loan modification after an Alabama foreclosure is one of the three essential documents you will need to resolve a wrongful foreclosure. You will also need a consent judgment to void the foreclosure (and foreclosure deed) and you will need a release that explains under what terms the lawsuit is being resolved.
The loan modification is a document, normally just a few pages long, that explains the following:
- How much is the loan going to be?
- What about any negative escrow?
- What about past due amounts?
- Or what will the interest rate be?
- Is the modified loan for 30 years, 40 years, or some other period of time?
- Will the interest rate ever go up or is it fixed?
- Is there any type of baloon payment owed at the end of the loan?
- When will your new payments begin?
There are some other items but these are some of the key ones to focus on.
As a way of a reminder, the consent judgment gets rid of the foreclosure.
The release explains what the parties agree to do with each other to end the lawsuit.
But the loan modification is the document that will control your relationship with the mortgage company until the loan is paid off.
I was going to end the article here but I realize that one question that is often asked is “Do mortgage companies really give loan modifications after a foreclosure?”
Yes. Not always but often. At least where you have valid defenses and valid counterclaims against the mortgage company.
And when you can demonstrate you have the ability and the intention to pay your modified mortgage.
At that point you have the “carrot” and the “stick” that is very useful in persuading the mortgage company to do the right thing.
If you have any questions and you live in the state of Alabama, give us a call at 1-205-879-2447.
I look forward to chatting with you!
Have a great day.