Flat Fee Legal Services for Loan Modifications

In a difficult economy, it is often hard to decide if it is better to modify a loan agreement  or simply stop paying. For a homeowner underwater, as so many are today, the choice seems to be in favor of stop paying. The problem, however, and often to the homeowner's surprise, is that as the failure to pay gives freedom from immediate debt, the unpaid balance or deficiency accumulates. When a later loan modification is sought, the lender adds the deficiency to the loan balance, along with fees and costs,making the new monthly payment even more than the one the homeowner had before. 

This is not only a residential loan problem. It happens whenever interest "PIKs" (PIK Interest stands for Paid in Kind and it occurs whenever interest accumulates to add to the principal balance as opposed to being paid in cash) and when covenants are missed and waiver fees are added to the loan balance.It happens when there is an early buy-out of equipment leases, including car leases. What sometimes looks like a great deal is often a future financial hardship coming in the form of increased monthly payments or large balloons or residuals.

I am often asked what options a person or business may have when facing a loan payment which is beyond the Borrower's ability to pay. Loan modifications are clearly one of the best ways to work-out the problem, especially if a package and picture is presented to the Lender which makes good business sense for both the Borrower and the Lender. I have negotiated both commercial and residential modifications in the most difficult financial markets. The right story and the presentation makes the difference. Can we help you consider your options?