There are few things more distressing than the prospect of losing your home. For homeowners who struggle to make their monthly payments, it may be worth discussing the possibility of a loan modification with the lender.
In some cases, the banks are willing to adjust the terms of your loan to get you back on track. However, this process is not for everyone, making it vital that you speak with our compassionate bankruptcy attorneys before agreeing to anything. Our Miami loan modification lawyers at Werner, Hoffman, Greig & Garcia can help you weigh your options and choose the best path according to your finances.
Loan modification is a process that allows homeowners to change the terms of their existing mortgage. This is usually done to avoid foreclosure and remain in the family home. Modifying a loan is different than refinancing, which involves adopting an entirely different loan that replaces the existing one. Modification means keeping the existing agreement in place but tweaking some of the terms.
Loan modification is often used by homeowners experiencing financial hardship who want to stay in their homes. Lenders are often willing to alter the terms in a way that is favorable to the lender because keeping them in the residence is also in their best interest. Most banks would prefer receiving regular payments on a loan compared to the costs of foreclosing on a property and attempting to sell it. The reality of this process is that it will only work when both parties are on the same page. Your lender is not obligated to modify your mortgage, although many will agree to do so if it helps you avoid foreclosure. Your best bet in these situations is to rely on the support of a Miami loan modification attorney.
There are different ways that our loan modification attorney might be able to help you. No two situations are exactly the same, meaning your lender might not be as flexible with you compared to other homeowners. What matters is understanding how modification might help.
In most cases, the primary goal of a borrower is to lower their monthly payments. This is especially important in cases where the homeowner is stretched thin but has resources to make a lower payment amount. There are different ways to reach this goal, including lowering the interest rate or adjusting the length of the mortgage.
In some cases, the parties might also agree to address any delinquent payments as part of the deal. Lenders might agree to roll your delinquent payments into your balance, thereby extending the length of the loan but helping you catch up on missed payments at the same time.
Modifying the terms of your loan could work in your favor, but it is a good idea to have an attorney help with this complicated process.
There is no standard timeline for this process, as it comes down to negotiations between you and your lender, but on average, it generally takes at least three months.
Before you assume that keeping your home is only a pipe dream, consider the possibility of loan modification. Every year, homeowners work with their banks to adjust the terms of their mortgage in a favorable way. Our Miami loan modification lawyers can help you explore these options and determine if this approach is right for you. Instead of dealing with this issue alone, reach out to Werner, Hoffman, Greig & Garcia as soon as possible for a private consultation.
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