If you’re behind on your mortgage payments or struggling to stay current, a loan modification may provide the necessary solution. An Orlando loan modification attorney from Florida Law Advisers, P.A., could assist you in preventing the foreclosure process from moving forward.
You don’t have to go through loan modification alone. At Florida Law Advisers, P.A., our lawyers will work to increase the chances that a lender will agree to alter the terms of your loan, allowing you to afford the monthly payments.
Before selecting loan modification as an option, you should consider the benefits and consequences of modifying your loan. Let us help you keep your home and get your finances back on track. Call or contact us online for a free consultation now.
What Does Loan Modification Mean?
A loan modification occurs when you and your lender begin with the terms of your current loan, but the lender agrees to adjust the terms. That means the lender might extend the loan term, change the interest rate from fixed to variable, or reduce the monthly interest rate.
Lenders have an incentive to provide more favorable terms to borrowers. It might seem counterintuitive, but the lender won’t get paid the full amount of money they’re owed if the borrower defaults on their loan or files for bankruptcy. A loan modification guarantees payment to the lender.
The lender can proceed with foreclosure if they have your home as collateral. However, that is an expensive and time-consuming process. Modifying the loan terms is often easier than pursuing a foreclosure because they can collect payment sooner than they would if they wait for someone else to purchase your home.
What Are Mortgage Loan Modification Options?
The options for a loan modification can include one or more of these changes:
- Lowering the interest rate
- Changing the type of mortgage, such as switching from an adjustable rate to a fixed rate
- Adding past-due amounts such as escrow and interest to the principal balance owed and recalculating payments for a new term
- Extending the loan term
Will a Loan Modification Lower My Payment?
Yes. A modification can reduce the payment amount so you can afford to repay your loan.
How Our Orlando Lawyers Help with Loan Modifications
Modifying a mortgage loan can be time-consuming, stressful, and confusing. You should not begin the process without a mortgage and loan modification lawyer from Florida Law Advisers, P.A. We can assist you with multiple aspects of your loan modification, including:
- Preparing the required documents to submit the request to your lender
- Negotiating favorable terms for payments you can afford
- Managing your case to keep things moving forward efficiently
- Communicating with the lender on your behalf
- Finding ways to mitigate or eliminate the risk of foreclosure