If you have been financially affected due to the coronavirus (COVID-19) pandemic or for any other reason, the law might be able to assist you in obtaining mortgage modification.
Borrowers who want to retain their homes but are unable to make their mortgage payments and have exhausted their deferral options may apply for a mortgage modification. A mortgage modification is an option that reduces or extends the terms of a home loan to modify the monthly payments more manageable for the borrower.
If you’re having trouble keeping up with your mortgage payments or have received a notice, a mortgage modification could help you minimize your payments and potentially avoid foreclosure. It is preferable to act quickly until the situation worsens. The sooner you start, the fewer options you would have when bargaining mortgage terms with the lender.
Understanding Mortgage Modification
If you have fallen behind on your mortgage to the point where your lender has started reporting the missed payments to the major credit bureaus, you may not qualify for a refinance. A loan modification is not a form of mortgage loan refinance. The same is true if you are currently facing unemployment due to COVID-19 or any other reason. Mortgage Modification is an effective remedy to help you out.
The lender keeps your loan but adjusts the terms of the loan agreement with a modification. The lender can reduce your interest rate, extend the term of your loan, change the type of loan you have, or all three. In most cases, a modification may offer immediate relief and does not entail a complex credit score or income criteria.
It’s important to keep in mind that a mortgage modification will appear as a negative event on your credit report. However, having a modification on your credit report —especially one that helps you to remain current— is preferable to have missed payments or a foreclosure on your credit record.
Important Steps to Take for a Mortgage Modification
When you decide to apply for a mortgage modification, gather and copy all relevant mortgage and financial records, and then consult with a Florida-based mortgage loan modification attorney.
Your mortgage modification attorney will work with banks and lenders to get you the right terms and conditions for your mortgage modification.
Consult with an Experienced Attorney
The mortgage lenders have retained law firms that specialize in foreclosure to seize your house while it is in foreclosure. They are well-aware of what they are doing. Mortgage foreclosure is so advanced in Florida that it has its own set of specialized, extremely complicated, and technical laws. To fight a foreclosure, you’ll need to hire an experienced attorney who specializes in foreclosure protection.
You can consult with one of the Florida mortgage attorneys at Serrano, Farah Law, LP. They’ll work with you to figure out the best choices, and assist you in negotiating with your lender to find a solution that allows you to keep your home while maintaining financial security.