How to Obtain a Loan Modification in Florida
If you are behind on mortgage payments and your lender has threatened to foreclose on your home, it is important that you do not panic. You do have legal options that can help you remedy the situation and even stay in the property. One of these is a loan modification. A loan modification can change any term of your current mortgage including the interest rate, the length of the loan, the principal amount, and more. Unfortunately, not everyone qualifies for a loan modification. Below, our Tampa loan modification lawyer outlines the eligibility requirements, and how to obtain one.
Determining if You are Eligible for a Loan Modification
To qualify for a loan modification, you must establish the following:
- Hardship: You must draft a hardship letter that outlines the financial stressors that are making it difficult to make mortgage payments.
- Income: You must prove that you currently have an income and that it is sufficient enough to allow you to pay the proposed new monthly mortgage installments.
- Decreased value: You must also show that your property has significantly decreased in value.
- Lack of equity: You must demonstrate that the current loan exceeds the current value of the property, leaving you without equity in the home.
- Late payment history: Surprising to many borrowers, a history of late payments can actually help you obtain a loan modification. Late payments show lenders that you want to make your mortgage payments, but a current hardship is preventing you from making payments on time. This can persuade many lenders to approve your loan modification.
How to Obtain a Loan Modification
If your lender agrees to a loan modification, there are certain steps you must take. These are as follows:
- Document the hardship: You should collect any paperwork necessary to show the nature of the hardship you are facing, as well as the extent to which it has impacted your income and ability to pay your mortgage in a timely manner. You should also document your ability to pay the mortgage under the new proposed terms of the loan.
- Meet with your lender: You will need to meet with your lender to discuss the possible options for a loan modification.
- Submit your application: You then need to complete and submit your application for a loan modification, including all of the paperwork that supports your claims. The exact documentation you will need will depend on your own personal circumstances. Bank statements and copies of previous tax returns are almost always needed so your lender can run a credit check.
- Make payments: You must continue to make payments according to the newly modified mortgage or your lender can start the foreclosure process again.
Our Loan Modification Lawyer in Tampa Can Help You Obtain Approval
If you are struggling to pay your mortgage and believe a loan modification would help, our Tampa loan modification lawyer can help. At Messina Law Group, P.A., our seasoned attorney can advise on whether you are eligible and help you navigate the process so you obtain the most favorable outcome possible. Call us today at (813) 492-7798 or chat with us online to schedule a consultation and to learn more.
Source:
leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0702/0702.html
