The Law Office of Michael E. Ripley

Exceeding Expectations

Is a Loan Modification Right for You?

San Diego Mortgage Modification Attorney helps with Economic Hardship

Loan modification is the process whereby a homeowner's mortgage is modified and both the lender and borrower are bound by the new terms.  The Law Office of Michael E. Ripley is experienced in handling all types of mortgage modifications including:

  • Reduction of the interest rate
  • Reduction in payments
  • Converting variable-rate loan to a fixed-rate loan
  • Reducing the principal of the loan
  • Extending amortization up to 40 years
  • Addressing tax arrearage, escrow fees, taxes and insurance

Unsure if Loan Modification Is Right for You?

In order to get a loan modification, a hardship letter is prepared that explains the client's situation. Our law firm knows what is required by lenders and can prepare a hardship letter that will satisfy a client's lender that loan modification is appropriate.  Is one, some, or all of the following factors involved?

  • Job loss
  • Reduced hours of work
  • High credit card debt
  • Medical bills/illness/death
  • Disability
  • Adjustable rate mortgage that has already reset
  • Adjustable rate mortgage that is going to reset in the near future
  • Homeowner owes more on home than it is worth
  • Homeowner is delinquent in house payments
  • Homeowner has received a Notice of Delinquency from his or her lender
  • Homeowner has had a Notice of Trustee's Sale posted on the front door of his or her home

If any or all of the above circumstances apply to you, you are eligible for loan modification.  A second factor for loan modification is your income. The goal and stated aim of loan modification is to reduce a homeowner's mortgage payments to equal 31 percent of their gross (pre-taxed) income. If your present mortgage payment exceeds 31 percent of your gross monthly income, then you should be able to qualify for a loan modification.

 Call 858-792-5800 for a Free Consultation
The knowledgeable staff at the Law Office of Michael E. Ripley is here to help San Diego, California residents who are seeking Loan Modifications.
Contact our Team by calling or filling out this CONTACT US form.

Loan Modification FAQs

What are my options?

Answer = Although a loan modification is one possibility, it is not the only one.  You may also consider a short sale.  You may also consider a deed in lieu of foreclosure.  Bankruptcy is another option.  Foreclosure avoidance is another option.  At the Law Office of Michael Ripley, we consider all of the options for a perspective client, before giving advice as to what the best option for them will be.

Why choose Loan Modification?

Answer = Loan modification works to create a mortgage resolution that is financially sustainable for a homeowner. The most common benefit to the homeowner is avoiding foreclosure. Lenders benefit by reducing the losses they would incur through foreclosing on the homeowner.

What if my credit is bad?

Answer = Whether your credit is good or bad does not determine if you get a loan modification.

What if I don't have any equity or I'm upside down on my mortgage?

Answer = Generally, people who are seeking loan modifications want to stay in their house even though they owe more than it is worth.

What can a prospective client expect in terms of a loan modification?

Answer = You will know what to expect during the first meeting with us. The government's guideline is a house payment cannot exceed 31 percent of your gross income. If a payment is 40, 50 or 60 percent of your gross pay, you can expect to get your payment down.

How much can someone expect to achieve dollar wise?

Answer = This dollar amount varies. Generally, with 30 to 40 years left on a loan and a savings of $500 a month, there would be a savings of over $150,000 over the life of the loan.

Do all banks engage in loan modification?

Answer = All banks are supposed to engage in loan modification. Some are easier to work with than others. We have been successful in getting loan modifications from every lender out there.

Is the government involved?

Answer = Yes, it can be, and there are several programs offered under President Obama's Making Home Affordable program. These include: Home Affordable Refinance Program (HARP), Home Affordable Modification Program (HAMP), Second Lien Modification Program (2MP) and Home Affordable Foreclosure Alternatives Program (HAFA).

How long should a client expect the process to take?

Answer = There is no easy answer and each case is different. But most cases are successfully completed within 60-90 days.

What should I expect my payments to be for my new loan?

Answer = The guidelines used by each bank are different, and the guidelines have been changing on a continuing basis. Typically, your lender will modify your loan so that you can afford to make your monthly payment. They do this by lowering the interest rate, extending the life of the loan, by principal reduction, or otherwise, by reducing the monthly payment so that you can continue to live in your home.


Contact Us

The Law Office of

Michael E. Ripley

Loan Modifications

12520 High Bluff Drive

Suite 110 (First Floor)

San Diego, CA  92130

Phone (858) 792-5800

Fax (858) 794-9132


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8:30am to 5pm

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