STUART LOAN MODIFICATION LAWYER
If you are facing a mortgage foreclosure, you may have alternative options. Foreclosures are often difficult experiences and it can be damaging both to your finances and credit score. A lender will often begin the foreclosure lawsuit about 3 to 5 months after payments stop coming in. The first thing you must do to avoid a lawsuit is stay in contact with your lender. Do not ignore the notices they send you. If you fall behind on your payments, call them and explain the situation—they may be willing to negotiate. One option that your lender may be willing to consider is a loan modification.
What is a loan modification?
Essentially a loan modification is the process by which an existing mortgage loan is renegotiated and restructured. A few possible ways for a loan to be restructured include:
- Reducing or freezing interest rates for adjustable loans
- Reducing principal balance
- Reducing late fees or other penalties
- Lengthening terms of a loan
- Capping monthly payments
Whatever the agreement, loan modifications are a permanent change to your loan. Many lenders will be willing to consider such a change as it can create a win-win solution. First, you will not be overwhelmed by debt, and second, they will not have to lose money through the foreclosure process. Furthermore, they will once again have a consistent asset.
A loan modification is one of the best options available to you. It will not hurt your credit score and it will allow you to stay in your home. In general, it makes your mortgage more manageable. If you do decide request a modification, you most likely will have to provide your lender with your most recent bank statements, tax returns from the last 2 years, and paycheck stubs. This will show your lender how much income you are making and why you need such a modification. When a homeowner has fallen on hard times, it is often more likely that a lender will be more willing to consider a change and approve a modification.
What should I be aware of?
Every foreclosure situation is different. Every homeowner’s position is unique. Because of this reality, there are no guarantees of how mortgage difficulties will play out. Some banks and lenders will be more willing to negotiate than others. Whatever the situation you are in, for better or for worse, it will be beneficial to have a legal professional on your side. An attorney will be able to advise you on which path you should take. Even though the final outcome is dependent on the lender, a lawyer can help protect and defend your rights through the entire process.
If you are looking for a law firm that is experienced and compassionate, work with Crary Buchanan. Our legal team is dedicated to helping the community of Florida. We believe in having clients, not cases, because we know how difficult this time can be.
For more information about loan modifications and your options, contact us today.