Loan modification refers to altering the terms of your mortgage so that you can afford to make payments, and ultimately, keep your home. Sometimes, a mortgage company will allow you to miss a couple of payments if you make them up over the next couple of months. Other times, you need a more permanent solution. Loan modification usually means lowering your payments - by negotiating better rates or extending the length of the loan, for example.
Illinois Mortgage Rescue Fraud Act
The Act prohibits loan modification consultants from taking a fee upfront. Be aware that although this is illegal in Illinois, consultants from out of state may try to charge you thousands of dollars upfront. The law states that you cannot be charged until the loan modification is successful, meaning that the terms are altered so that you can keep your home.
A loan modification attorney will charge a processing fee upfront (this is permitted under the law). The fee is generally $500. If and when the loan modification is successful, your attorney will collect an additional $1,000 or so. Again, you pay no attorney fees (just the processing fee) until the end when all the work has been done. If your attorney isn't successful in modifying your loan, you won't pay anything except the processing fee.
Finding an attorney
Most of the work can be done over the phone in loan modification cases. So, you can hire an attorney locally, or out of town, and it shouldn't make much of a difference. The focus should instead be on the attorney's experience and whether they have had success in loan modification cases in the past.
Timing - is it too late?
Even if you've already filed for bankruptcy, or the foreclosure process has begun, it's worth talking to an attorney because there still may be something they can do.
Additional resources provided by the author
Looking for a loan modification or bankruptcy attorney in Illinois? Give us a call. Our goal is to refer you to the best attorney we know for your situation. And we do it for free. 1-800-517-1614.
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