Our office has been inundated with calls from homeowners who are concerned and even panicking because their CARES Act forbearance is coming to an end, or has already come to an end, but they do not know the next steps. The reality is that millions of homeowners across America are behind on their mortgages and in forbearance. While we would like to believe that all loan servicers are there to help and really have homeowners’ best interest at heart, the reality is that they do not. Their job is to be as profitable as possible to make as much money as they can for their shareholders and officers. That means they are not generally going to overstaff their office to make sure they can handle the influx of people needing assistance. They will hire the bare minimum to get by. Further, there is only so much the federal government can do. They cannot force servicers to give everyone modifications or write off past due balances. Homeowners need to know what can be done and who to turn to.
A loan modification is a great solution for many struggling homeowners. The modification may bring a lower interest rate and longer terms, which may result in a reduction in the monthly payment amount. However, modification can be tricky and it’s important to have the right law firm on your side who can guide you through the process. Just because you are behind on payments does not mean that you will automatically qualify for a loan modification. For example, if you have no income or limited income that is not enough to support a loan modification, your modification will be denied. A modification needs to be done right the first time. So determining the right time to file a modification request is vital. On the flip side, if you have too much income, that could also be a problem.
Modification is also not the only solution. Some loan servicers have agreed to defer the missed payments to the end of the loan, so all that needs to be done is resume making regular payments again and those missed payments will not be coming due until the loan is paid off. There could also be a repayment plan where the missed payments are spread out over time to catch up. There is also an option for a Chapter 13 bankruptcy that will give a homeowner five years to catch up on their missed payments.
At Loan Lawyers, we have substantial experience in all of these areas and have saved thousands of homes in Florida. If you find yourself in the position where you are behind on mortgage payments for any reason, call us no wot chat about your situation with an attorney. We can help you create a plan that suits your needs and puts you in the best position to try to save your home. Call us now at 1-888-FIGHT-13 for your FREE consultation.