Florida Loan Modification
What is a Loan Modification in Florida? In many situations where homeowners are struggling to make their monthly mortgage payments, a possible solution to assist in easing the burden of those monthly payments is to apply for a loan modification, a type of loss mitigation effort. In essence, a loan modification is an agreement between the borrower and the Bank wherein the Bank/Lender is agreeing to modify or change key portions of the mortgage. More specifically, the Bank/lender can agree to lower the monthly mortgage payments, reduce the interest on the mortgage, or reduce the amount of the principal balance of the mortgage.
As the borrower, you will have to determine if you are eligible for these types of loan modifications. The Bank/Lender can assess your situation on an individual basis and forward an application for a loan modification. It is very important to adhere to any deadlines as well as remit all requested documents, including pay stubs, tax returns and bank statements. The Bank/Lender wants to ensure that you are indeed struggling financially before they approve any modification.
Once a loan modification is approved and all parties agree to its terms, the borrower sometimes will be on a trial modification plan where the borrower must make the first three (3) payments to the Bank/Lender before a final modification is approved. The Bank/Lender wants to ensure that the borrower can make the new payments without falling further into debt and without missing any payments.
A Loan Modification can be a great resource for struggling homeowners but it is always important to read any loan modification as the payments may be decreasing per month but the deferred principal balance due at the maturity date of the loan may double. The Law Office of Ryan S. Shipp, PLLC and its team of dedicated Florida Foreclosure Defense Attorneys and support staff are here to help. Call us today at (561) 699-0399 to set up your free 20-minute consultation. We are located in Lantana, Florida. We serve South Florida.