It is no secret that the Florida real estate market has experienced more highs and lows in the last 15 years than we would typically expect. This, unfortunately, has generated a large number of attempted loan modifications and foreclosures, especially in the years 2010-2015. Even though the dust has settled, there are always families that have changes in their employment or financial situation that may warrant a loan modification.
A loan modification is a financial transaction that occurs when a lender decreases the monthly payment and/or principle balance on a homeowner’s mortgage to make their homes more affordable. This financial tool can allow homeowners to halt foreclosure proceedings, decrease mortgage payments, and/or reduce interest rates.
For homeowners, the negotiation process with your bank can be difficult, confusing, and time consuming. A qualified loan modification attorney can often negotiate much better terms and expedite the entire process.
If you fit into one or more of the following scenarios, we invite you to contact us for a consultation:
- Do you owe more on your home than it is worth?
- Did your interest rate recently increase?
- Do you have an adjustable rate mortgage that will be increasing soon?
- Are you late on your payments?
- Have foreclosure papers been received?
- Do you have an interest rate that is higher than the current rates?
If you answered yes to one or more of these questions, you may be a good candidate for a loan modification.
Applying for a modification is a legal process. Financial records such as bank statements, monthly income, and expenses will all be documented and play an important role in qualification process. Lenders will frequently ask for additional documents and updated documents, and your failure to provide them in a timely fashion may result in being denied. The homeowner must carefully monitor the status of your modification and make sure that all the documents and information you have submitted are most recent and updated.
We recommend the guidance of a qualified loan modification attorney throughout this entire process. However, if you choose to attempt a loan modification yourself, we strongly recommend that you hire a loan modification lawyer to review the trial plan or actual modification to ensure that the terms are fair and that you are properly protected. Remember, this is a brand new, and in most cases long term, legal document that you are bound to until satisfaction.
Please also keep in mind that in Florida, only a licensed Florida attorney can negotiate a loan modification with your lender on your behalf. Beware of loan modification companies or specialists that say they can represent you, as they are just third party providers that may charge unnecessary fees.
If you believe that you may be a candidate for a loan modification, contact our office to consult with Donna Hearne-Gousse, an experienced and qualified Florida loan modification attorney.
The Law Office of Donna Hearne-Gousse