If recent financial or personal hardship has left you struggling to afford your monthly mortgage payment, it is natural to find yourself suffering stress and anxiety over the prospect of losing your home.
These hardships could be anything from losing your job or suffering a medical emergency to being called up for military deployment.
If you are having trouble making monthly mortgage payments, you should know that you have other options besides losing your home. You may be eligible to apply to a bank for something called a loan modification, which would provide you with a lower, more affordable monthly payment.
At Loan Lawyers, we have decades of experience helping homeowners keep their homes by obtaining loan modifications. Let us help you through the loan modification process. We’ll fight on your behalf to reduce your monthly payments and keep your home.
What is a Loan modification?
Mortgage modification is a process where the terms of a mortgage are modified outside the original terms of the contract agreed to by the lender and borrower (i.e. mortgagee and mortgagor in mortgage states; Trustee and Trustor in Trust Deed states). In general, any loan can be modified, and the process is referred to as loan modification or debt rescheduling.
In the normal progression of a mortgage, payments are made according to the loan documents until the mortgage is paid in full (or paid off). The lender holds a lien on the property and if the borrower sells the property before the mortgage is paid off, the unpaid balance of the mortgage is paid to the lender to release the lien. Any change to the mortgage terms is a modification. Changes may include any of the following: a reduction of the yield (commonly referred to as the interest rate), an extension of the payment term (ex. extending a 30-year term to a 40-year term), or a reduction of the principal balance of the loan. (Wikipedia)
What sets Loan Lawyers apart from other law firms and modification firms is the fact that we are not only counselors and advisors, but battle-proven litigators and trial lawyers. By developing our reputation as fighters, and have taken over 200 foreclosure cases to trial, and have achieved tremendous results for our clients both at trial and in settlement negotiations. We always aggressively fight for our client’s rights and are willing to go to trial if we have to. Therefore, we are able to get our clients the maximum benefit and recovery in their cases.
Loan Lawyers has successfully gotten over 2,000 loan modifications for our clients. Often clients come to us from other law firms or companies that were not able to get them loan modifications. We succeed where others fail based on our detailed knowledge of the laws pertaining to loan modifications. Most people aren’t aware or well versed in the detailed laws of RESPA (The Real Estate Settlement Procedures Act), a Federal Statute that details specific procedures and laws that banks and loan servicers must adhere to when processing loan modifications. Banks and Loan Servicers know that when Loan Lawyers is involved in the modification procedure if they don’t follow the law we will sue them and hold them accountable.
Contact us now for a free consultation.
What are the Options for Loan Modifications in Florida?
Any homeowner who needs to lower their monthly mortgage payments could have multiple options for a loan modification. Some common options may include:
- Principal reduction. If you have cash or other liquid assets available, you may be able to reduce your mortgage payments by reducing the principal left on your loan. By paying off a significant amount of the principal on your mortgage, you may be able to renegotiate a much lower monthly payment for the remainder of the term of your mortgage.
- Lower interest rates. If you qualify for a lower interest rate and have sufficient equity in your home, you may be able to refinance your mortgage at a lower interest rate, which can reduce your monthly payments to a more manageable level.
- Extended loan terms. You may be able to negotiate to extend the term of your loan. By extending the term of the loan, you can reduce your monthly payments by spreading out the outstanding balance over a longer period. However, by extending the loan term, you will end up paying more in interest.
- Changing from adjustable to fixed rates. Many people apply for adjustable-rate mortgages, enticed by the low teaser rates and payments. Once the interest rate begins increasing, however, they often find themselves unable to afford the higher monthly payments. It may be possible to reduce monthly payments to a lower, more manageable amount by converting or refinancing your mortgage from an adjustable-rate mortgage to a fixed-rate mortgage. This also has the benefit of allowing you to plan for the long-term secure in the knowledge that your mortgage payment will not vary or gradually increase over the years.
- Postponement of payments. If you or a member of your family are experiencing a temporary hardship – such as losing your job, being temporarily disabled, suffering a medical emergency, or being called to military duty – you may be able to negotiate a temporary postponement or deferment of your mortgage payments. While this will give you an opportunity to stabilize your financial situation, bear in mind that postponing payments does not postpone the interest. You will continue to accrue interest on the principal during your postponement, and this in turn will increase your monthly payments once the postponement period ends.