Fourth, you must show that your loan amount exceeds the current property value. This will establish the potential necessity of a mortgage modification, as you will have no equity in the home. In an ideal scenario, your modification will bring your updated mortgage in line with what the home is presently worth.
Fifth and finally, you must have a recent history of late or missed mortgage payments. You cannot get a loan modification if you are still able to pay your original mortgage. You also cannot request a loan modification before you actually begin to miss payments. If you know you are about to be hit with huge medical bills that will consume much of your income, for example, you unfortunately cannot seek a mortgage modification until one or more payments is late or missed entirely. This may seem counterintuitive, but it is a feature of the system attempting to curb abuse by those simply seeking to avoid honoring the original mortgage.
Once you meet all 5 of the above conditions, you can submit your affidavit of hardship, which can be done even if foreclosure proceedings have already begun against your property. This typically begins negotiations with your bank or lending institution. Remember, loan modifications require cooperation with your financial institution. If they refuse to negotiate and you are determined not to lose your home, note that filing for either Chapter 7 or Chapter 13 bankruptcy will issue an automatic stay that halts foreclosure proceedings. You could still lose your home in Chapter 7 liquidation, but you will have an opportunity to repay a portion of your mortgage in Chapter 13 reorganization. Our experienced Tampa loan modification attorneys can help negotiate with your financial institution and explore alternative options should they refuse to cooperate.
What Can a Mortgage Modification Accomplish?
The main goal of any mortgage modification is to save your home and adjust the loan’s monetary terms to figures you can continue to pay sustainability. In other words, a successful loan modification will be advantageous to both you and your financial institution, as it allows the financial relationship to continue long-term without going through the expensive and resource-consuming foreclosure process.
Our Tampa loan modification lawyers can help renegotiate many elements of your mortgage, including:
- Reducing the principle balance
- Reducing the amount of your monthly installment payments
- Lowering the interest rate
- Reducing or eliminating late fees
- Extending the amount of time to repay
Hire Successful Loan Modification Negotiators
At Cremeens Law Group PLLC, we have a proven history of helping our Florida clients keep their homes through successful mortgage loan modifications. Our team is made up of accomplished negotiators who understand how to communicate with banks and other financial institutions and how to best advocate for the needs of our clients. Should you retain our services, we can evaluate the details of your situation, determine if you qualify for a loan modification, assist in drafting your hardship affidavit, and work to achieve a favorable result with your lending institution. We are empathetic to what is at stake and will do everything possible to help you keep your home.
If you are already facing foreclosure proceedings, do not wait to get in touch with us. We can help explore loan modifications and other means of saving your home. Call (813) 683-8688 or contact us online to schedule a free consultation.