Loan Modification Attorney vs Representing Yourself

Loan modification allows borrowers to rework the terms of their mortgage loan and stave off a potential foreclosure. This process benefits both borrowers and lenders and allows for local economies to avoid the potential financial devastation that is brought on by an individual’s inability to pay back their loans.

Loan Modification Process

A loan modification is a complex process that involves some legal understanding in order to be successful. There are many who suggest that a successful loan modification application should be conducted with the assistance of an attorney or legal counsel while others feel confident in their abilities to go it alone. Although using a lawyer is always advisable when entering into a complex or complicated legal process, this article will look at representing yourself as well as consulting with a lawyer.

Doing It Yourself

One of the advantages of representing yourself in a loan modification process is the cost savings that are derived from not having to pay lawyer’s fees. This is often times seen as the biggest advantage in going it alone and foregoing the use of an attorney when entering into a loan modification. An individual who wishes to represent themselves should be confident in their ability to negotiate with a lender and understand fully the terms and conditions of the loan agreement.  

The Expertise of an Attorney

An attorney can provide expert advice and represent the interests of a borrower seeking loan modification. This is because a lawyer speaks the language of a lawyer that constructed the terms of a loan modification agreement and can cut through the legalese to determine if the new arrangement is beneficial to the borrower. This may not be possible of a lay person who is seeing a loan agreement for the first time. 

The obvious trade-off is the cost associated with hiring an attorney as oppose to going it alone.

Loan modifications may not always provide the desired cost benefit that the borrower is looking for in order to reduce their monthly costs and avoid foreclosures. An individual who chooses to represent themselves in a loan modification should become as educated as possible in order to understand all of the particulars of the agreement and to make sure that it meets their expectations to lower costs. Again, the value of a lawyer may help in this regard, saving the time and expense that an untrained individual will experience if they misinterpret the meaning of the loan modification agreement.