Ask an Attorney
Representation for Financial Matters
Obviously, whenever possible, you would like an attorney to represent you when negotiating with lenders. Whether it’s a bankruptcy or a loan modification, attorney representation can protect you from the never ending predatory practices of financial institutions who are looking out for their own bottom line.
Take for example something as simple as home loan modification. There are many do it yourself models and a large lobby telling you not to trust anyone and to use the free government programs. But here is a small detail that has huge consequences, where an experienced attorney would help you, the unsuspecting homeowner, from once again becoming a victim of an army of lender attorneys.
In California, mortgages are non recourse loans per the California Code of Civil Procedure Section 580b, meaning you can lose your home if you don’t pay your mortgage, but the lender can not go after your other assets. Now what happens when you get a DIY loan modification; a slight piece of legal language gets slipped into the new contract.
If for some reason you can not afford to make the new payments, well you may have a big surprise in store for you. Depending on the wording in the contract, it can be legally argued that the loan modification is not purchase money financing (money used in the purchase of the home), and therefore you are no longer protected by the state’s non-recourse code. This means in layman’s English, you just let the bank have access to all of your assets because you didn’t hire an attorney to help you with the loan modification process.
In every sector of financial negotiations, there are tricks that financial institutions know about which can harm you and that is why it is always the right idea to hire an attorney to look out for YOUR FINANCIAL INTERESTS.
LoanWorkout911 has various Forum resources available to help you get legal questions answered or find legal representation. You can also ask regular people how they may have handled similar situations. You’ll find our Forum logically organized and easy to navigate. Be sure to register and start posting your questions or stories today!
Forums
Click to select
