The loan modification process can be frustrating and confusing for many distressed homeowners if you try to go at it alone. The banks are looking out for their best interest and they don’t have to modify your loan just because you’re going through a difficult situation. Banks are typically overwhelmed with delinquent mortgages so if you don’t present your information exactly how they want it you have no chance of them modifying your loan. If you are considering contacting your lender about your loan to avoid foreclosure, you need to be aware that anything you give them can be used against you later.
Programs and guidelines are changing every day so you want an experienced loan modification attorney to help navigate you through the loan modification negotiation process. To help you understand how the process works and what you can expect, here some of the frequently asked questions about the loan modification process. The Law Office of Marc L. Shapiro, P.A. helps its clients in loan modification process in the city of Everglades City, Marco Island, Naples, Bonita Springs, Cape Coral, Fort Myers and Sanibel.
A loan modification is a permanent change in one or more terms of a borrower’s home loan. This allows the loan to be reinstated and results in a payment the homeowner can afford.
The number one criterion is your ability to make the new modified payment now and in the future. You need to supply the lender with proof of your income, along with a complete and accurate financial statement detailing your income and expenses to show them that if granted the modification, you will be able to afford the new, lower payment.
Some lenders are now accepting applications from homeowners who are not currently delinquent, but who are able to prove to their bank that due to imminent interest rate increases, they will no longer be able to afford the loan payment under the terms of their loan. It is advisable to contact your lender as soon as possible to start the loan modification process, regardless of if you are delinquent or not.
Per HUD, the accrued late charges can be waived by the lender at the time of the loan workout but this varies depending on the type of loan. We always request a complete breakdown and description of all fees and penalties from your lender.
Each homeowner has a unique set of circumstances that caused them to fall behind on their home loan, but generally, the lenders consider divorce/separation, loss of income, the death of spouse, co-borrower or family member, illness, job relocation, military service to be acceptable reasons to consider a loan modification.
Yes, that is the goal – by working with your lender to find a loan workout solution, your loan is brought current and the foreclosure process is halted.
Yes, the arrears can be added to the new loan balance and spread out over the term to allow the loan to be brought current.