Millions of homeowners across America have received a mortgage forbearance for their home loan. Although many homeowners have had their forbearance plans expire already, while many are still in a forbearance plan. During the period of forbearance, a homeowner is not required to make monthly mortgage payments. The CARES Act passed by Congress at the beginning of the coronavirus pandemic made it easy for homeowners to obtain this temporary forbearance by simply calling their mortgage loan servicer and asking for a forbearance.
Many homeowners wonder what is next after their mortgage forbearance plan ends. Well, there are several possibilities of what a homeowner can expect after their forbearance plan has ended. On some loans, the homeowner is expected to make up all missed payments in a lump sum as soon as the forbearance plan has ended. So, under this resolution, a homeowner who had a six-month forbearance in place is expected to make all 6 missed payments at the end of the six month period. For other loans, the missed payments are added to the back end of the loan and are due with the last regular monthly payment at the time the loan is paid off. With other loans, we have where the servicer will give a six or twelve-month payment plan to pay back the missed payments in equal monthly installments.
What is a homeowner to do if they still cannot make their mortgage payments or does not have the ability make up the missed payments in a lump sum or payment plan? All hope is not lost. There is a right to receive a review for a mortgage loan modification for most home mortgages. However, it should be noted that there is no right to be reviewed for a loan modification for a home equity line of credit, or HELOC, although many servicers will still consider a loan modification request. That being said, even when there is a right to be reviewed for a mortgage loan modification, there is no requirement that a loan servicer or bank actually approve a modification, only that they consider it.
When attempting to modify a loan, timing is everything. If you apply for a modification at the time you are unemployed, there is almost a zero percent change that you will be approved, and now you have used up your right to be reviewed for a loan modification for at least one year in most circumstances. At the same time, if you have too much income, that could also be a problem in getting approved for a modification. At Loan Lawyers, we have helped thousands of Florida homeowners modify their home mortgage loans. We have the tools and experience to be able to advise you when the right time may be to submit the modification or even whether a loan modification is right for you.
In addition to the loan modification option, many homeowners can consider filing bankruptcy under Chapter 13 of the bankruptcy code. There are several options that may be available to homeowners in a Chapter 13 bankruptcy. The best route to pursue in the bankruptcy is really dependent on each homeowner’s unique set of facts. For some homeowners that are back to earning income but just need time to catch up on their missed mortgage payments, they may be able to get a payment plan to back any missed mortgage payments over a period of five years. For other homeowners, they may actually be able to pay off their whole mortgage in a five year period by taking advantage of a lower interest rate in the bankruptcy proceedings. For other homeowners, depending on which Florida county you live in, there may be a mortgage modification program through the bankruptcy courts that may work for you.
One of the greatest lessons we have learned by helping thousands of Florida homeowners is that there is no one-size-fits-all solution. Every borrower has a different circumstance and a plan needs to be crafted for that borrower depending on their unique situation. At Loan lawyers, our legal services include representation for foreclosure defense, mortgage loan modification, bankruptcy, and we also sue banks, loan servicers, and debt collection for violating a borrower’s rights. It may be some combination of these services that is necessary to give a homeowner the best chance of saving their home.
When choosing a law firm to assist in saving your home after a forbearance plan has ended, or at any juncture, it is critical to make sure that the law firm you are considering provides ALL of these services so that they are prepared to do whatever needs to be done to put you in the best possible position. For example, if you choose a law firm that does nothing but foreclosure defense, then how will ever get help getting your loan modified, or get good advice if a bankruptcy is right for you? The best-case scenario is that you find a law firm that offers all of these services so that everything that may be needed to save your home can be done in-house and you do not need to find different law firms for different services who can then point the finger at each other if things do not go well for you.
At Loan Lawyers, we will give you a free consultation with a qualified, licensed foreclosure relief attorney from our office who will help you create a plan that is best for you, not best for the law firm, and one that is customized for your specific situation. If your needs or situation changes at some point while we are representing you, we are equipped to quickly change gears and create new plan for you that accounts for your change of circumstances, such as increased or reduced income.
When it comes to saving your home, do not even consider taking a chance with an unproven law firm or one that does not offer all of the legal services that may be necessary to help you. Call Loan Lawyers right now at 1-888-FIGHT-13 for your absolutely free consultation in the office or over the computer or phone.