There are some circumstances where a homeowner will benefit from a loan modification. A loan modification is where a lender will restructure a mortgage so the payments are more affordable for the homeowner. This can be done by converting the interest rate from a variable to a fixed, reducing the interest rate, extending the length of the loan, and/or forbearing some of the principal balance of the loan.
While a homeowner is not required to retain a loan modification lawyer, it is often in their best interest to do so, especially if there is a potential foreclosure involved. Whenever there are any issues involving mortgage arrears and foreclosure, it is important to consult with a lawyer to find out what legal options are available to save the home.