If you are behind on your mortgage, a modification might be in your best interests. Modifying the terms of your loan could help you become current and avoid foreclosure.
Of course, you cannot choose to modify the terms of your loan on your own. Your lender must agree to any modification in order for the loan terms to be altered. Working with a seasoned attorney at Marc Brown P.A. can help you negotiate with your lender and obtain loan modification in Fort Lauderdale.
Benefits of Loan Modification
There are several benefits that come with modifying the terms of a home loan. First and foremost, loan modification could be the answer to avoiding foreclosure. In fact, the lender might agree to modify the terms of a loan even after foreclosure proceedings have already begun.
Loan modification could also lower the interest rate a homeowner in Fort Lauderdale must pay. This in turn drops the monthly payment, which can increase the odds that a homeowner is able to make their payment each month.
In some cases, loan modification could restructure the debt to address any deficiencies. Lenders often allow borrowers to transfer their late payments into the main loan. This extends the length of the loan, but it also ends any default.
Finally, loan modification has the potential to address unreasonable variable mortgage rates. Many homeowners found that a variable rate that remains high can prevent them from making their payments. Switching to a fixed rate could make a major difference in a homeowner’s ability to pay on time.
Loan modification does not only benefit you. Most of the time, lenders would much rather have a homeowner making their monthly payments instead of dealing with default or foreclosure. Many lenders will agree to modify the terms of the loan in a way that is more favorable to the borrower only to keep them in the home.
The Loan Modification Process
When a borrower falls behind on their mortgage and is unable to get caught up on their own, it is unlikely that the lender will unilaterally seek to improve the terms of the loan. It is necessary for a homeowner seeking a loan modification to request an alteration to the terms of the loan from the lender.
Banks are never guaranteed to agree with a loan modification request, but Fort Lauderdale homeowners can request one at any time. This is true when borrowers are current on their loan, or it could occur when a homeowner is already facing eviction.
Each lender has strict requirements for granting loan modifications. Before the lender will agree to any changes, it must first determine if an applicant qualifies. When a lender agrees to a modification, they often require borrowers to make payments into a trial modification plan before formally modifying the entire loan.
Talk to a Fort Lauderdale Attorney About Loan Modification
If you are facing the prospect of foreclosure, a loan modification might be the best option for keeping your home. This process is rarely easy, but Marc Brown P.A. can assist you with the process.
Let our experienced attorneys advise you on loan modification in Fort Lauderdale. Call right away for you a free consultation.