Representing Florida Homeowners Facing Foreclosure 

If you have fallen behind on mortgage payments or have already been served a notice of foreclosure, you may feel that you have nowhere to turn. This same situation has happened to numerous homeowners throughout Central Florida. There are options that may help, however. A lawyer experienced with these matters can look to such options as a short sale or deed in lieu of foreclosure, a loan modification, or vigorous pursuit of a defense and review for predatory or unfair lending practices. Any of these options may be able to help you avoid foreclosure or save your home. By discussing your particular options and your financial goals with you, an attorney at our offices can help you make an informed decision about fighting the foreclosure of your home.

Contact the Law Office of Parker & Associates, P.A. today - 888-588-3314.

Loan Modification

What is a loan modification?

Loan modifications are changes to your loan agreement. Your payments get more affordable, and you don’t have to default on your loan. Banks choose to offer loan modification programs because it is easier to work with you than to go after you.

Why do Banks Offer Loan Modification?

If you stop making payments or fall behind on payments, the bank or lender has several options.

·         It can attempt to repossess property (a home foreclosure, for example)

·         It can attempt to collect money due by suing you and garnishing wages or bank accounts

·         It can give up and accept its losses; or

·         Watch you declare bankruptcy and receive little or nothing.

These options are not attractive to you or the bank. Your credit will suffer, and there’s a financial cost to the bank.

There is another option. Lenders offer loan modification so that they don’t have to do any of the above. Loan modification can be less expensive and more profitable for banks, but not in every case.

What Types of Loan Modifications Exist?

Banks can change the terms of your loan to make the payments more affordable. These changes may be permanent or temporary. In any case, the result should be a more manageable payment. There are several ways this can be accomplished:

·         Refinance the loan;

·         Skipping payments, and add those payments to the end of your loan;

·         Reduce the total amount of your loan (forgive principal);

·         Reduce the interest rate charged (APR);

·         Extend the loan term.

With lower monthly payments, you could end up paying more in interest over the years. If loan modification keeps you afloat, it may be worth the cost. However, make sure you know what it'll cost you and that it's your best option - not just a way to free up cash each month.

Modifications are far from guaranteed. There is no law requiring the bank to modify your loan. The federal government directed the mortgage industry to help reverse the effects of loose lending practices and falling home values and gave them a portion 700 billion dollars to do it. The average home owner needs to understand that a loan modification is a negotiation between the mortgage company and the owner. Nothing is guaranteed by the federal government or any other institution. Banks have vague guidelines under which a borrower must qualify in order to get the modification. Approaching this process from a negotiating standpoint is critical to achieving success. At Parker & Associates, P.A., we can negotiate with your lender on your behalf to attempt to obtain the best possible resolution for your situation. Call us today 888-588-3314.