{"id":4535,"date":"2021-06-15T12:31:06","date_gmt":"2021-06-15T12:31:06","guid":{"rendered":"https:\/\/cutlerbankruptcy.com\/?p=4535"},"modified":"2022-02-16T12:29:01","modified_gmt":"2022-02-16T12:29:01","slug":"know-about-loan-modification-in-illinois","status":"publish","type":"post","link":"https:\/\/cutlerbankruptcy.com\/know-about-loan-modification-in-illinois\/","title":{"rendered":"What You Need to Know About Loan Modification in Illinois"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Loans are useful for business ventures, debt consolidation, and investments. Loans are debts incurred by an individual or other entity. It refers to the money given to another party in exchange for repayment of the loan principal amount plus interest. It comes in different forms including secured, unsecured, commercial, and personal loans. It can be secured by collateral such as a <\/span><b>mortgage<\/b><span style=\"font-weight: 400;\"> or it may be unsecured such as a credit card.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Generally, both the lender and the borrower must agree with the terms and conditions of the loan. It includes the loan amount, the maximum amount of interest rate, collateral, mortgage payment plan, and length of repayment time before releasing any amount of money.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019re struggling to pay off your mortgage according to the original home loan payment agreement, you can consider filing for a loan modification. The goal of a <\/span><b>loan modification<\/b><span style=\"font-weight: 400;\"> is to help a homeowner catch up on past-due mortgage payments and <a href=\"https:\/\/cutlerbankruptcy.com\/how-to-avoid-foreclosure-with-bankruptcy\/\">avoid foreclosure<\/a>. The article will answer the following questions to help you understand how loan modification works:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How Do I Get a Mortgage Loan Modification?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What is a Loan Modification?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How Do I Qualify for a Mortgage Loan Modification?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What are the Different Mortgage Modification Programs?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How Do I Apply for a Loan Modification?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How Do I Avoid Loan Modification Scams?<\/span><\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"How_Do_I_Get_a_Mortgage_Loan_Modification\"><\/span><span style=\"font-weight: 400;\">How Do I Get a Mortgage Loan Modification?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-662f198ede51e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-662f198ede51e\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/cutlerbankruptcy.com\/know-about-loan-modification-in-illinois\/#How_Do_I_Get_a_Mortgage_Loan_Modification\" title=\"How Do I Get a Mortgage Loan Modification?\">How Do I Get a Mortgage Loan Modification?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/cutlerbankruptcy.com\/know-about-loan-modification-in-illinois\/#What_is_a_Loan_Modification\" title=\"What is a Loan Modification?\">What is a Loan Modification?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/cutlerbankruptcy.com\/know-about-loan-modification-in-illinois\/#How_Do_I_Qualify_for_a_Mortgage_Loan_Modification\" title=\"How Do I Qualify for a Mortgage Loan Modification?\">How Do I Qualify for a Mortgage Loan Modification?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/cutlerbankruptcy.com\/know-about-loan-modification-in-illinois\/#What_are_the_Different_Mortgage_Modification_Programs\" title=\"What are the Different Mortgage Modification Programs?\">What are the Different Mortgage Modification Programs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/cutlerbankruptcy.com\/know-about-loan-modification-in-illinois\/#How_Do_I_Apply_for_a_Loan_Modification\" title=\"How Do I Apply for a Loan Modification?\">How Do I Apply for a Loan Modification?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/cutlerbankruptcy.com\/know-about-loan-modification-in-illinois\/#How_Do_I_Avoid_Loan_Modification_Scams\" title=\"How Do I Avoid Loan Modification Scams?\">How Do I Avoid Loan Modification Scams?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/cutlerbankruptcy.com\/know-about-loan-modification-in-illinois\/#The_Role_of_a_Bankruptcy_Attorney_in_Loan_Modification\" title=\"The Role of a Bankruptcy Attorney in Loan Modification\">The Role of a Bankruptcy Attorney in Loan Modification<\/a><\/li><\/ul><\/nav><\/div>\n\n<p><span style=\"font-weight: 400;\"><img fetchpriority=\"high\" decoding=\"async\" class=\"alignright wp-image-4536 size-medium\" title=\"Loan Modification in Illinois\" src=\"https:\/\/cutlerbankruptcy.com\/wp-content\/uploads\/2021\/06\/Loan-Modification-in-Illinois-300x300.jpg\" alt=\"Loan Modification in Illinois\" width=\"300\" height=\"300\" srcset=\"https:\/\/cutlerbankruptcy.com\/wp-content\/uploads\/2021\/06\/Loan-Modification-in-Illinois-300x300.jpg 300w, https:\/\/cutlerbankruptcy.com\/wp-content\/uploads\/2021\/06\/Loan-Modification-in-Illinois-150x150.jpg 150w, https:\/\/cutlerbankruptcy.com\/wp-content\/uploads\/2021\/06\/Loan-Modification-in-Illinois-480x480.jpg 480w, https:\/\/cutlerbankruptcy.com\/wp-content\/uploads\/2021\/06\/Loan-Modification-in-Illinois.jpg 626w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/> If you are behind on mortgage payments due to financial problems, loss mitigation can help you stay on top of loan payments and aim for <\/span><b><a href=\"https:\/\/cutlerbankruptcy.com\/home-foreclosure-need-know-2\/\">home foreclosure<\/a> prevention<\/b><span style=\"font-weight: 400;\">. Loss mitigation refers to the process of trying to protect homeowners and mortgage owners from foreclosure. Both parties can alter loan provisions, work out a refinance plan, extend the length of payment, or undertake a variety of different methods to keep the mortgage intact. It helps you and your mortgage servicer manage delinquent mortgage loans. Here are some of the loss mitigation options that you can choose from:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Loan Modification<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Short Sales<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Repayment Plan<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Forbearance Agreement<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Deed in Lieu of Foreclosure Process<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"What_is_a_Loan_Modification\"><\/span><span style=\"font-weight: 400;\">What is a Loan Modification?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A loan modification is considered the most common type of loss mitigation. Although a loan modification may be made for any type of loan, they are most common with secured loans such as mortgages. With this process, a homeowner\u2019s mortgage is modified, with both the lender and homeowner being bound to new loan terms. Loan modification aims to make your mortgage payments more affordable.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When you struggle financially and if you fail to repay your loan according to the original payment agreement, you may request a loan modification. It involves a change to the original terms of your loan. It may involve an extension of time for repayment, reduction of interest rate, or a change in the type of loan. It can be a great option to ease your burden and avoid losing your home.\u00a0 A <\/span><b>loan modification process<\/b><span style=\"font-weight: 400;\"> can be understood with the help of a <\/span><a href=\"https:\/\/cutlerbankruptcy.com\/\"><span style=\"font-weight: 400;\">competent Skokie bankruptcy attorney<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_Do_I_Qualify_for_a_Mortgage_Loan_Modification\"><\/span><span style=\"font-weight: 400;\">How Do I Qualify for a Mortgage Loan Modification?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The qualifications and requirements for a home loan modification may vary depending on the guidelines of the mortgage lender and the type of loan. These are typically based on the amount that you owe, the property being used for collateral, and specific features of the collateral property. To qualify for a home mortgage modification, you need to prove that:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">the house or residential property is your primary residence (homeownership)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">you&#8217;ve experienced financial hardship (divorce, job loss, or disability)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">that your gross monthly income is just enough to make regular monthly payments under a modification<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Before the approval of a loan modification, you need to undergo a trial period plan (usually 3 months) to show that you can afford the modified amount under the new mortgage terms.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_are_the_Different_Mortgage_Modification_Programs\"><\/span><span style=\"font-weight: 400;\">What are the Different Mortgage Modification Programs?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">If you are struggling to make your mortgage payments, contact your mortgage lender or servicer immediately and ask about your options. Nowadays, most lenders and servicers offer various <\/span><b>loan modification assistance programs<\/b><span style=\"font-weight: 400;\">. Moreover, you might qualify for a government loan modification program depending on the circumstance and type of your mortgage. Several options can be offered for borrowers with Fannie Mae or Freddie Mac, VA-guaranteed, FHA-insured, and USDA mortgages. For example, if your mortgage is owned or guaranteed by either Fannie Mae or Freddie Mac, you may be eligible for this program.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_Do_I_Apply_for_a_Loan_Modification\"><\/span><span style=\"font-weight: 400;\">How Do I Apply for a Loan Modification?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A mortgage loan modification application will require you to declare your financial information (proof of income, auto loan, or credit card debt), residential mortgage information, and the specifics of the hardship situation. To apply for a mortgage modification, you have to get in touch with your servicer\u2019s home retention department to request loss mitigation. You need to include the following details in your application:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">personal information<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">property information<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">recent payslips or pay stubs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">tax returns<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">bank statements<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">a hardship letter or affidavit<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"How_Do_I_Avoid_Loan_Modification_Scams\"><\/span><span style=\"font-weight: 400;\">How Do I Avoid Loan Modification Scams?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Homeowners who are troubled and financially distressed are the targets of scam artists from different mortgage modification companies. To avoid scams, it is advisable to seek legal help from a credible Skokie bankruptcy attorney to help you better understand the process of loan modification. Be wary of loan modification companies or lending institutions that will promise a bailout that sounds too good to be true. They\u2019ll charge you for various services that you can do on your own. These scammers will simply collect your loan modification application documents from you and submit them to your mortgage or loan servicer.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_Role_of_a_Bankruptcy_Attorney_in_Loan_Modification\"><\/span><span style=\"font-weight: 400;\">The Role of a <a href=\"https:\/\/cutlerbankruptcy.com\/choosing-bankruptcy-attorney\/\">Bankruptcy Attorney<\/a> in Loan Modification<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Applying for a loan modification can be complicated, confusing, and time-consuming especially if you don\u2019t have enough knowledge regarding loss mitigation laws and the loan modification process. Therefore, hiring our <\/span><a href=\"https:\/\/cutlerbankruptcy.com\/contact-us\/\"><span style=\"font-weight: 400;\">experienced Skokie bankruptcy attorneys<\/span><\/a><span style=\"font-weight: 400;\"> at Cutler Bankruptcy, LTD can ease your burden. We will be able to go through all the documents you need, make sure that the paperwork is complete and correct to avoid penalties and denial. We will help you understand the different loan modification options, create an action plan, and negotiate loan terms with your lender.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Loans are useful for business ventures, debt consolidation, and investments. Loans are debts incurred by an individual or other entity. It refers to the money given to another party in exchange for repayment of the loan principal amount plus interest. It comes in different forms including secured, unsecured, commercial, and personal loans. It can be [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":4537,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[],"_links":{"self":[{"href":"https:\/\/cutlerbankruptcy.com\/wp-json\/wp\/v2\/posts\/4535"}],"collection":[{"href":"https:\/\/cutlerbankruptcy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cutlerbankruptcy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cutlerbankruptcy.com\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/cutlerbankruptcy.com\/wp-json\/wp\/v2\/comments?post=4535"}],"version-history":[{"count":2,"href":"https:\/\/cutlerbankruptcy.com\/wp-json\/wp\/v2\/posts\/4535\/revisions"}],"predecessor-version":[{"id":5225,"href":"https:\/\/cutlerbankruptcy.com\/wp-json\/wp\/v2\/posts\/4535\/revisions\/5225"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cutlerbankruptcy.com\/wp-json\/wp\/v2\/media\/4537"}],"wp:attachment":[{"href":"https:\/\/cutlerbankruptcy.com\/wp-json\/wp\/v2\/media?parent=4535"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cutlerbankruptcy.com\/wp-json\/wp\/v2\/categories?post=4535"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cutlerbankruptcy.com\/wp-json\/wp\/v2\/tags?post=4535"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}