In Maryland, some consumers face uncertain circumstances based on the loan contracts they sign. If they are unfamiliar with legal terms, they could sign a contract that could lead to foreclosure or repossession. The following are details about the reasons for seeking loan modification services.
Predatory Lending Practices
Lenders are required by federal law to assess the consumer’s income before providing a loan. They must evaluate the consumer’s ability to pay the loan based on an income-to-debt ratio. This ratio defines the exact value that is affordable for the consumer. However, some lenders don’t follow the rules and provide unaffordable loans to unfortunate consumers. The purpose of this action is to ensure the consumer defaults on their loans and cannot fulfill their obligations. An attorney can help the consumer eliminate these terms from their loan.
Financial Hardships Due to Job Loss
Consumers can face financial hardships at any time. These circumstances arise from job loss or a sudden death in the family. These reasons could help them make changes in their loan contract to prevent a default. Lenders can provide a forbearance of the loan until the consumer can restart payments.
Avoiding a Bankruptcy Claim
A bankruptcy claim helps consumers avoid foreclosure. The bankruptcy applies an automatic stay for the consumer that can prevent the lender from seizing their property. However, some consumers don’t need to file these claims. A loan modification can assist them with the circumstances they are facing without the negative impacts of a bankruptcy.
Managing Adjustments Based on Interest Rates
An attorney reviews the interest rates that were available when the loan was initiated. If the lender failed to provide the best rates available to the consumer, the lender faces certain liabilities. A loan modification can improve the consumer’s interest rates and make the loan more affordable.
In Maryland, consumers need assistance to prevent unethical lenders from taking advantage of them. The terms of the loan contract could indicate a possible foreclosure or repossession based on predatory terms. These terms guarantee the consumer won’t be able to afford their loan. Consumers who need loan modification services can visit Law-margulies.com for more information now.