In times of financial hardship, it can be difficult to face the truth: bills may be difficult or impossible to pay, and you need help. The first step is to realize that you need to take control. Getting behind on payments or failing to pay each month can result in bad credit and foreclosure of your home. Loan modification may be an option for you. Loan modification helps borrowers who are facing financial problems work with their lender to change the terms of their mortgage loan to make it affordable.
Those that are unable to make monthly mortgage payments have the option to request a loan modification. In the event of a loan modification, the bank will give you any one of the following: an extension to a 40-year term, temporary or permanent interest rate reduction or a balloon payment, which is a large payment due at the end of a mortgage or loan. However, if you are still able to make payments, you will most likely be denied by your bank unless you stop making payments and risk foreclosure of your home.
But you have options. In the case that your bank denies you loan modification, speak with them about other options you may have. Refinancing may be one. This allows the homeowner to switch to a fixed rate or a lowered monthly payment. This is a great option if you are current on mortgage payments. If you’re behind, ask about a repayment plan. This helps you catch up until your finances are back in order.
Whatever your situation, discuss with your bank as soon as possible. They may be able to recommend the best options for you and your family. Also, if you aren’t sure what your best options are, help is available. Stephen K. Hachey, a Florida loan modification attorney, that can help you navigate this process and make the most of a difficult situation. Contact him at 813-549-0096.
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With so many programs in place to help homeowners avoid foreclosures and keep their homes, it can be difficult to figure out who is legitimate and who is harboring less than honest intentions. If you are trying to get a modification on your home loan or looking for a way to avoid or manage a looming foreclosure, make sure you take some time to evaluate a company before jumping into a business deal. Dealing with a potential foreclosure can be emotional and challenging, so find a company that is available to meet your needs and work with your lender on your behalf. If you aren’t sure whether to trust a company, call the Attorney General and find out if there are any complaints on file.
One of the first questions you should ask is whether the foreclosure modification company expects any money up front. If the company wants you to pay them before any work is done, you might want to reconsider doing business. You should also be skeptical of any company that promises you they can save your home. That decision will ultimately be the bank’s call. If the foreclosure modification company promises they can get you a lower interest rate or a lower monthly payment, you should also be suspicious. A good foreclosure modification company will evaluate your current situation and offer you options for how to modify your mortgage and save your home. They should not charge any fees up front and they cannot make promises that they will not be able to follow through on. If you have additional questions about this process, Stephen K. Hachey, a Florida real estate attorney, can help. Contact our offices at 813-549-0096.
This article is for general informational purposes only and does not establish an attorney-client relationship. Please contact a licensed attorney in your state of residence. For more information on our services, please visit our website at floridarealestatelawyer.org.
This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.
The Home Affordable Modification Program, affectionately called HAMP, is a federal program passed in 2009 to help homeowners stay in their homes. This program was enacted in order to stem the alarming rate of foreclosures in the nation. With house values falling below what most people owe on their mortgages, getting refinanced and keeping up with mortgage payments seemed impossible for a lot of homeowners. HAMP encourages borrowers to work with their lenders towards finding a way to stay in their homes and get current on their mortgages.
Depending on your financial situation, the value of your home and the lender you are working with, HAMP can help you reduce the principal owed on your mortgage, or get your interest rate lowered to a point that makes your monthly mortgage payments more affordable. There are several requirements that you will have to meet in order to qualify for HAMP. You must be seeking a modification on your principal residence, and you must have signed your mortgage prior to January 1, 2009. If you meet those requirements, talk to your bank about the amount you owe and how it compares to the value of your home. You may be able to get a modification that makes payments more reasonable.
Many of the largest lenders in the nation are working with their borrowers through HAMP. If you are worried about foreclosure or you have struggled to make your mortgage payments, call your lender and find out if HAMP is an option for you. Stephen K. Hachey, a Florida real estate attorney, can help you navigate this process. Contact our offices at 813-549-0096.
This article is for general informational purposes only and does not establish an attorney-client relationship. Please contact a licensed attorney in your state of residence. For more information on our services, please visit our website at www.floridarealestatelawyer.org/
This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.
