A loan modification is a change made to the terms of an existing loan by a lender. It may involve a reduction in the interest rate, an extension of the length of time for repayment, a different type of loan, or any combination of the three.
Such changes usually are made because the borrower is unable to repay the original loan. Most successful loan modification processes are negotiated with the help of an attorney or a settlement company. Some borrowers are eligible for government assistance in loan modification.

Getting a mortgage loan modification could mean extending the length of your term, lowering your interest rate or changing from an adjustable-rate mortgage to a fixed-rate loan. Though the terms of your modification are up to the lender, the outcome is lower, more affordable monthly mortgage payments. Foreclosure is a costly process for lenders, so many are willing to consider loan modification as a way to avoid it.

A short sale in real estate is when a financially distressed homeowner sells his or her property for less than the amount due on the mortgage. The buyer of the property is a third party not the bank, and all proceeds from the sale go to the lender. The lender either forgives the difference or gets a deficiency judgment against the borrower requiring them to pay the lender all or part of the difference between the sale price and the original value of the mortgage. For example: If a Seller still owes a bank $200,000 on their mortgage, but they may only be able to sell the home for $175,000 on the open market, then the home and seller may qualify for a short sale, and the bank may agree to accept $175,000 as full payment.
Why would anyone agree to do this?  The foreclosure process can be very lengthy and costly for the bank.  It can also be very frustrating and emotionally draining for the Seller.  Many homeowners who can no longer afford to keep mortgage payments current find that a short sale is the best alternative to bankruptcy or foreclosure proceedings.  It may also possibly save their credit from total disaster.  When lenders agree to a short sale in real estate, they are betting that they can avoid a lengthy and costly foreclosure process. It is supposed to create a win-win scenario for all parties involved. 


A mortgage forbearance agreement is an agreement made between a mortgage lender and a delinquent borrower in which the lender agrees not to exercise its legal right to foreclose on a mortgage and the borrower agrees to a mortgage plan that will—over a certain time period—bring the borrower current on their payments.

The coronavirus outbreak has triggered forbearance help from Fannie Mae and Freddie Mac, which, between them, guarantee more than two-thirds of all mortgages and 95% of mortgage-backed securities.

Forbearance provides the borrower time to repay delinquent mortgage sums. This is advantageous to the struggling borrower, but offering forbearance also benefits the loan owner, such as a bank, which frequently loses money on foreclosure after paying the fees associated with the process. However, loan servicers, which collect payments but do not own the loans, may be less willing to work with borrowers on forbearance relief because they do not bear as much financial risk.

A repayment plan on a mortgage helps you get back on track after a period of missed payments. While your mortgage lender already charges you a fixed amount per month, a repayment plan adds a portion of the past-due amount to your bill for a period of several months until you're caught up. It's a strong option if you're now in a better financial situation and you're motivated to avoid falling further behind. You'll need to demonstrate to your lender that you can afford the repayment plan, which may incorporate late fees.


A conventional sale is when the property is owned outright (has no mortgage remaining) or the owner owes less on their mortgage than what the market indicates the owner could sell their property for. Such conventional sales are often smoother transactions than non-conventional sales, such as foreclosures, probate related sales and short sales.

To learn more about your options, call (305) 969-3602 or send an email to schedule a confidential case consultation with our experienced foreclosure attorneys.


MIAMI, FL 33176
PHONE: (305) 969-3602


PHONE: (305) 969-3602