Fidelity Law Group: Three Avenues of Loan Modification

San Diego based Fidelity Law Group explains the three ways to accomplish a loan modification.

San Diego, CA, July 02, 2009 --( Based in San Diego, CA, Fidelity Law Group has a combined twenty-one years experience of helping consumers with real estate and bankruptcy law.

In short, a loan modification is a process by which a bank modifies the terms of the borrower’s mortgage, allowing the borrower to make their payments while simultaneously improving their own financial or debt position. Loan modifications generally result in either a lowering of the agreement’s interest rate, reducing the principal balance of the loan, extending the length of the loan, or a combination of the above.

“The overall idea here,” explains Michael Schunk, President of Fidelity Law Group, “is to establish the best avenue for our clients. Because we have the experience and know-how in loss mitigations and loan modifications, we know what departments to contact and how to get through the bureaucracy where most laymen get tangled.”

There are three avenues in which to accomplish a loan modification: hardship, forensic review, and Chapter 13 Bankruptcy. A hardship is a financial analysis packet containing all the financials of the borrower that can demonstrate their inability to afford their current payment. A forensic audit is the process of combing through the original loan documents to discover if the lender violated a lending law, like the Truth in Lending Act, the Real Estate Settlement and Procedures Act, or the Unfair Dealing and Practices Act. A Chapter 13 Bankruptcy is where the law firm, on behalf of their client, the borrower, files for bankruptcy. The focus is to reduce the principal balance the borrower owes on the mortgage agreement to the current Fair Market Value of the property.

“Over the past number of months we’ve been able to help a lot of clients,” adds Schunk. “They get their mortgage issues resolved, and we get to help a client in need. It’s a win-win.”

Fidelity Law Group is located in San Diego, CA, and for more information call 1(888) 809-5299, or contact them via their website:

Fidelity Law Group
Michael Schunk
(888) 809-5299