Service: The Law Offices of Sulaiman & Associates will conduct an in-depth study of all the documents and the specific narrative of the Client/Borrower to discover what is the best course of action to be taken in regards to a Loan Modification Strategy for the Client/Borrower. The Firm’s goal is to educate our Clients and with our advice and counsel guide our Clients through the potentially treacherous waters of Loan Modification. We are committed to researching, formulating and finally executing the best strategy for our Clients. This is our Commitment to all our Clients.

Question: What is a Loan Modification?

Answer: Loan Modification: A Loan Modification is designed to reinstate the loan and refers to changing and adjusting the terms of the original mortgage. It is an agreement between the Borrower and the Lender to allow the Borrower to continue making payments upon a program tailored made between the Borrower and the Lender. For example, reaching an agreement with the Lender that the Borrower’s interest rate would be adjusted from an 8.75% interest rate down to a 4.75% interest rate and changing the amortization from 30 to 40 years so that the monthly payments are more manageable, are both examples of Loan Modifications.

It is extremely difficult to describe a standard Loan Modification Plan as no two circumstances are exactly the same. Recently, Countrywide Home Loans, pursuant to a settlement agreement with the Illinois Attorney General has allowed for some standardized Loan Modifications. Most Loan Modifications are tailored made to what the Borrower can afford and what the Lender will accept. Our Attorneys negotiate Loan Modifications. What differentiates our Firm from everyone else is that we will only present a Loan Modification and other Repayment Plans as a settlement and not as a Reinstatement, an important distinction for those who are aware of the intricacies of the Illinois Mortgage Foreclosure Act. Our Loan Modification – Repayment Plans are reviewed by our Attorneys to ensure the best outcome for our Clients.

Prior to the current financial crises the terms of a Loan Modification – Repayment Plan commonly provided for a payment of ? of the arrearage (back payments) as a down payment and 1 ? payments a month until the account is brought current.

In the current market environment, provided the Loan Modification – Repayment Plan is properly presented to the Lender, a far better outcome is secured for our Clients which in the recent past have included:

1. Reduced Monthly Payment
2. Reduced Interest Rate
3. Fixed Interest Rate: 30 Years to 40 Years Amortization
4. Reduced Principal
5. Adding back payments to the principal
6. Extending the term of the mortgage

Description:

Lenders are not under any obligation to enter into a Loan Modification agreement. What our Clients often find is that it is very similar to having a second job trying to conduct and conclude a Loan Modification on satisfactory terms to the both the Borrower and the Lender. Our Firm handles this matter from beginning to end. Because the Lender is under zero obligation to enter into a Loan Modification agreement, the negotiations are usually intricate and complex. In the future, and in the event the Federal Bankruptcy Laws are changed, which seems more and more likely, the Federal Bankruptcy Court Judges shall be able to Judicially Modify the loans for our Clients. Please inquire as to the benefit this may have to your situation and what you need to do right now to prepare for the change in the Bankruptcy Laws by setting up your free initial consultation today.

Each Lender has a different procedure for conducting a Loan Modification. Once, a Loan Modification is properly completed, the Borrower/Homeowner should be in a position to keep their home and the Lender will expect the payments to be received as agreed to in the Loan Modification agreement. Any Foreclosure Proceedings filed should be dismissed. Please hire competent counselors to properly conduct a Loan Modification. Whomsoever you hire to assist you, please check their credentials and how find out up front how a Loan Modification may affect you. Contact us today at (630) 575 – 8181 for an initial consultation with an Illinois Licensed Attorney.

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