Like so many others, you may have found in recent years that the dream of owning your home has become more of a nightmare. It used to be that you could get a loan to finance the purchase your house. You made your payments, and now and then you might have even refinance your loan. Eventually, you paid off your home or you sold it before that happened. But now, more and more, people are finding that the value of their home has plummeted, and they owe far more than the current market value of the property. This is due to the drop in property values across the country. Added to that is the reality of more layoffs, more debt, and other expenses that add up to less income and more bills.

As a result, more homeowners have been opting to just not pay their mortgages. And that has led to a massive increase in foreclosures, which leads to further drops in property values. As one of the alternatives to bankruptcy, many home mortgage lenders have begun to offer programs that modify these loans in order to allow people to afford their payments and thereby keep their homes. There are specific requirements that must be met to qualify for a loan modification, and the process can be complex. A Virginia Beach loan modification attorney can be of immense value in helping you obtain a loan modification. You don't want to be turned down because you didn't understand common pitfalls.


The main difference between a refinance and a loan modification is that with a modification, there will be no reduction in the final amount owed. Both make changes in your payment plan and interest rate, making your regular payments more manageable. But if you have failed to make a few mortgage payments, you won't qualify for a refinance. For one, your credit score will have dropped, and this is a primary factor in whether a lender considers you a good risk, and is willing to give you a new loan. Perhaps you lost your job, or had an accident or illness and just could not make the monthly payments. In some cases, due to the drop in property values, you cannot refinance because now your home does not have enough property value to qualify. A loan modification might be your answer.


The federal government has several programs that could help you, including HAMP (Home Affordable Modification Program), PRA (Principal Reduction Alternative), Second Lien Modification Program (2MP), as well as FHA-HAMP (FHA Home Affordable Modification Program), and special programs for veterans. Many people need help to get some help to understand if you qualify for any of these programs. Banks have not been particularly kind about assisting homeowners that are struggling with an underwater mortgage. They often respond better when our law firm gives them a call. Why? They know we can help you file for bankruptcy, which makes the issue much more complicated. We know how to negotiate with banks and other lenders.

Common Requirements for a Loan Modification

Following are the main factors most mortgage servicers require for a modification:

  • You have had a significant change in your financial status or incurred a hardship, all which can be documented.
  • You have not filed for bankruptcy.
  • You have not paid at least three mortgage payments.
  • You occupy the property as your primary residence.
  • You demonstrate that you are working with your lender by responding to their requests for various documents on a timely basis.
  • Able to show you can make payments on time by having an acceptable debt to income ratio.

How our Virginia Beach Loan Modification Attorney Can Help You

There are many documents, such as income and expense summaries, authorizations for tax disclosure and credit checks, proof of income, tax returns and more you need to submit to the lender. Making sure they are complete and correct is critical. It is also common for lenders to make mistakes, lose applications and paperwork, or even to have failed to have the correct documentation for your original loan. You could be denied the option for a loan modification, or be given such a runaround that you have no idea what to do next. Our attorneys at the David McCormick Law Group are extremely skilled in this area and will do everything necessary to maximize your chances of obtaining a loan modification and helping you to get a reasonable mortgage payment, as well as avoid foreclosure and keep your home. Call us today for more information.

Bankruptcy Intake Forms
Click Here

Fill out a bankruptcy intake form here.