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How a Lawyer Can Help with Loan Modification

Understanding How Legal Representation Can Assist in Negotiations with Lenders

Not being able to repay a loan under its original terms is a frustrating experience for everyone. As the borrower, you entered the agreement with full confidence you would be able to honor its terms, but circumstances beyond your control have likely intervened to make doing so impossible.

Lenders, unfortunately, can be less than sympathetic to the extenuating circumstances of their borrowers. Some can be unscrupulous in their methods of collecting, leading to creditor harassment. Still, a loan is a legal agreement, and you are obligated to pay.

Some seek to explore loan modification, the process of changing the terms of this deal, including through bankruptcy. While you can attempt to negotiate a modification or even manage bankruptcy on your own, you can strategically place yourself in a much more advantageous position by hiring an experienced attorney. Below, we cover why retaining legal representation can dramatically assist you in pursuing a loan modification.

Fighting Lenders Is Not Productive

Some borrowers will attempt to take on lenders without any legal representation. This is generally not a good idea, as lenders have all of the leverage, legally speaking. Your loan agreement specifies when you must make payments. If you do not make those payments, you are in default, and your lenders have legitimate reason to attempt to collect or pursue other actions.

The reality is they also probably do not care about any hardships that have contributed to your inability to pay. Lenders are only concerned with getting their money back.

When lenders are not sympathetic to your problems and seek only to collect payment, some borrowers can become frustrated or even angry. Berating or getting aggressive with your lender is not a viable solution to solving an issue with a loan. Experienced lenders, like those at banking institutions, have likely seen just about everything when it comes to borrower reactions, and even the most firmly worded rant is unlikely to sway them from their position.

It is understandable you are upset your lender is refusing to cooperate, especially if your loan involves your home or your car. Nevertheless, you have to remember this is not an emotional transaction for your lender. All they want is for the loan to be resolved.

Even if you do propose a loan modification to resolve an issue, lenders will evaluate what move is most financially prudent for them. You can attempt to negotiate a modification, but it is easy to become overwhelmed – or not understand when you are putting yourself in a vulnerable decision – if you are not familiar with all of the factors and jargon governing these agreements.

Lenders Respond to Lawyers

Most lenders will perk up when they learn a client has hired an experienced attorney to represent them in a loan modification negotiation. The hiring of legal representation tells a lender that a borrower is serious about resolving the loan.

Your lawyer can manage all of the day-to-day communications with the lender. Attorneys are trained to be rational, calm, and direct when negotiating with lenders. They also understand the language and can more ably convey your position and the potential paths to resolution. You will not have to spend time getting bogged down by long phone calls: Your lawyer can handle those conversations and work to solve the problem as efficiently as possible.

A skilled bankruptcy attorney will also be able to evaluate the specific circumstances of your situation and help you understand your legal options for loan modifications. Lenders will not advise you on an option that is not financially advantageous to them, including, generally, bankruptcy. Remember, lenders are only looking out for themselves. A lawyer will look out for you.

Keep in mind that even the act of hiring legal representation can improve your day-to-day life while you work toward a loan modification. Your lender cannot bother you with collection calls, for example, once they know you have hired a lawyer. Lenders must contact your attorney about matters relating to your debt, instead.

At the end of the day, every party wants the loan dispute to be resolved. Lenders know that a lawyer will not let you be pushed around, and many will even become cooperative to avoid a protracted, costly endeavor.

We Can Help You with Loan Modification

Our attorney at Schuyler Elliott & Associates, Inc. has been practicing law for over 25 years. Our team has substantial experience advocating for consumers pursuing loan modifications and are prepared to help you conquer your debt. We can assess your situation, manage communications with your lender, and advise you on your legal options. We are well-versed in negotiating loan modifications that protect your interests and will help you understand the implications of each potential solution, including bankruptcy.

Do not face negotiating with your lender alone. Call (770) 400-9102 or contact us online to hire an experienced lawyer to assist with your loan modification today.