Orlando Loan Modification Attorney

There are many different events in life that can cause you to fall behind on your mortgage payments. Having overdue mortgage payments is not only stressful for you, but for everyone in the home. Sometimes, a situation may even cause you to lose your home. Fortunately, there are options available that can help you become current with your mortgage and even make future payments more affordable. Our Orlando loan attorneys can help you negotiate an agreement with your lender.

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 our Orlando loan modification attorneys help you keep your home and get your finances back on track. Call or contact us online for a free consultation now.

What is a Loan Modification?

A loan modification, also known as a mortgage modification, is the process of changing your current loan to make mortgage payments more affordable. A loan modification is not the same thing as a refinance. When you refinance your mortgage, your current loan is destroyed and you obtain an entirely new one. A loan modification does not void your current loan but just changes certain terms of it. If your lender approves a loan modification, you can change the interest rate, the life of the loan, your current payments, and even the principal amount. Any term of your mortgage can be changed through a loan modification.

The loan modification process is a complex one. You must negotiate with your lender and reach an agreement that is suitable to both parties. Our Orlando loan modification attorney can help you obtain the most favorable terms.

Benefits of Loan Modifications

Obtaining a loan modification is the best way to avoid foreclosure for many borrowers. The benefits of loan modifications are as follows:

• Avoid foreclosure, while also allowing you to keep your home,
• Reduce your interest rate, making future payments more affordable,
• Reduced monthly payments,
• Provide for an extension on payments that are past due,
• Lower the principal amount of the loan, and
• Have accrued interest waived.

Why Work with an Orlando Loan Modification Attorney?

The loan modification process is daunting and complicated. Your lender will ask you for a significant amount of paperwork and other information to assess your loan modification options. Mortgage lenders are typically very large companies and they may argue that you have not submitted the necessary documents, that your paperwork was not filed properly, or that you did not submit the paperwork on time. This can take the loan modification process much longer to complete and if you are already behind on mortgage payments, every month you may be incurring that much more debt, or be that much closer to foreclosure.

Our attorney will ensure that your documents are completely filled out, and that they are submitted on time. We can also negotiate a favorable loan modification with your lender.

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

How Can I Get a Mortgage Loan Modification?

You must demonstrate the hardship you face and show your ability to pay off the loan with new terms to qualify for a loan modification. Follow these steps to modify your mortgage loan.

Collect Necessary Paperwork

Your formal loan modification application must include documentation of your hardships. You should gather financial records showing your income before and after the hardship before discussing the matter with your lender. You can prepare for the conversation by outlining these following details:

• The nature of your hardship
• Your current obligations for necessities
• How much the hardship affects your income and your ability to keep up with current payments
• Your ability to pay a lower amount for the rest of the term

Contact Your Loan Servicer

The loan servicer is the company that receives your mortgage payments. It might be the same company as your original lender or a third party. You can look at your mortgage documents for the name and phone number of the servicer. Prepare for the conversation by organizing the essential documentation and determining how to explain your situation.

Submit the Application

You can request a modification application from your lender or download it from their website. Depending on the available methods, you might have to mail a paper form or submit the application online with the attached documents to support your request.

The documents you must provide will depend on the lender but might include the following:

• An authorization to conduct credit checks on all borrowers and additional payment contributors, if any
• An explanation of the financial hardship with documentation, such as an increase in expenses, loss of income, or the death of a co-borrower
• Real estate and other assets you own other than your home
• Current balances for your bank and investment accounts
• Current proof of income, such as federal tax returns or pay stubs, including documentation for surviving co-borrowers and anyone expected to contribute to your payments after the modification

Make Trial Payments

Your lender might require three trial payments while processing your application. It can take 90 days or longer to complete processing. The payments will likely be less than your previous obligation, but it might not reflect the new amount you will pay after finalizing the modification. Paying on time and in full is crucial while the lender processes your application.

Wait for a Decision

The lender should mail you their decision with the updated loan agreement and payment schedule if they approve your application. They will mail a denial letter if they don’t approve the modification.

Loan Modification During Chapter 13

You might be able to work on a modification with your lender even if you have already filed for Chapter 13 bankruptcy and are making payments on the owed amount.

The lender could add your missed payments to the end of the mortgage, thereby increasing the length of the term, or reduce your monthly payment amount by adjusting the interest rate. Your mortgage will be declared current upon approval of the modification application.

You must give the bankruptcy judge your modification for approval. The judge will likely approve your request if the new loan terms are reasonable. After approval, you must propose a new repayment plan for the Chapter 13 bankruptcy. The late mortgage payments you previously owed and other debt included in the new mortgage, such as unpaid property taxes, will be removed from your Chapter 13 repayment plan. You can continue your monthly payments at the new amount until the term ends. For a FREE Consultation, Call 1(800) 990-7763.

Our Loan Modification Attorney in Orlando Can Provide the Representation You Need

If you have fallen behind on your mortgage payments, our Orlando loan modification attorney can help you avoid foreclosure. At Florida Law Advisers, P.A., our experienced attorney can help you through the process and negotiate with the lender on your behalf so you have the best chance of obtaining a favorable outcome. Call us today at 1 (800) 990-7763 to schedule a consultation and to learn more.