Making Your Mortgage Affordable
If you cannot afford your current mortgage payment, a mortgage modification is a process that may work for you. In a mortgage modification, you negotiate with your lender to obtain a more beneficial loan. You may be able to change your loan's terms, interest rate, or monthly payment. If you are having difficulty paying your mortgage, I recommend that you contact me at Robert J. Warren, P.A., Attorney at Law; I can assist you in better understanding the mortgage modification process and help determine if it is a viable option for you. As a Gainesville bankruptcy attorney who has helped thousands of individuals with debt relief, bankruptcy, and other financial matters in the North Florida area, I am experienced with loan documentation and modification.
Prevent Foreclosure with a Modification Mediation in Bankruptcy
Outside of bankruptcy, less than four percent of borrowers have been successful in having their loans modified. Fortunately, the bankruptcy courts of North Florida have adopted a new program called Mortgage Modification Mediation. This new method of approaching the modification process has an average success rate of around seventy five percent! Modification in bankruptcy works better because the court is supervising the process and, rather than deal with the usual inefficient bureaucracy of the banking industry, the bank is compelled to cooperate according to a schedule set by the court and deal in good faith knowing that the court will be reviewing their actions and results.
The goal of the loan modification process is to negotiate a more affordable payment for you. This may be achievable through an interest rate reduction, which may be established as temporary or permanent, or by extending the payback term in some cases to as much as 40 years. Other options may include deferring principal payments, generally at zero interest. While it is rare, in some cases the lender may agree to a principal reduction in cases where your home has lost value due to a declining real estate market or other factors.
A loan modification can be a way of preventing a foreclosure on your home, which will be beneficial to both you and the lender. The foreclosure process is costly for lenders, thus making some lenders more amenable to keeping borrowers in their homes under modified terms. Mortgage modifications can be complicated, confusing, and lengthy, depending on how much traffic your lender is dealing with, how complex your individual case may be, and whether the lender has a streamlined process in place to deal with the matter.
As an attorney who has dealt with foreclosures, bankruptcy, and debt relief for many years, I hope you will let me use my hard-won experience and legal skills to help you in understanding and preparing for the mortgage modification process or with other debt relief options. It is my professional goal to help you find legal solutions that will save your home, save you money, and reduce your financial stress.