There are many different reasons why a person may face foreclosure. Whether you have suffered job loss or unforeseen financial hardship, you may fear losing your home to foreclosure when you are unable to keep up with your mortgage payments. Obtaining approval for a loan modification from your lender is one option that allows borrowers to lower their monthly payments while keeping their mortgage current. Before you go through with a loan modification, you may wonder whether it is a good fit for your situation.
The Law Offices of Daryl L. Jones, P.A, is a Florida real estate law firm with over 30 years of experience helping clients who are facing foreclosure. If you are unsure if you should proceed with a loan modification application, it is important you understand the pros and cons.
What Are the Pros and Cons of a Florida Loan Modification?
When a person initially decides to take out a mortgage loan, it may seem like a great way to afford their dream home when they do not have enough money to pay for the home in full. However, for some borrowers it may later become apparent that the monthly payments needed to keep one’s mortgage current are difficult if not impossible to keep up. A loan modification may help resolve this issue, but it is vital that you understand the benefits and risks of applying for a Florida loan modification.
Loan Modification Benefits Your Lender
Most homeowners assume that their lender benefits when their home goes into foreclosure. However, that is not the case. Because the length of your loan term is often increased when a modification is granted, lenders reap the benefits of your monthly payments over a longer period.
Loan Modification Is a Good Option if You Have Bad Credit
If your credit has not yet suffered, you may be unable to refinance your loan to lower your monthly mortgage payments. If you cannot refinance due to your lowered credit score due to missed mortgage payments, you may think your only other option is foreclosure. However, a loan modification is another option that can help homeowners with bad credit.
The Terms of Your Loan Will Change
For those going through financial hardship, a loan modification is a significant benefit as it will typically decrease your monthly payments. Lowered monthly payment may allow you to:
- Get back on your feet financially
- Give you more time to find a new job
- Help you pay off other debts such as credit cards or medical bills
- Allow you to continue paying your mortgage loan
When the terms of your loan change because of a loan modification, you may have a clean slate regarding your financial situation.
The Application Process Can Be Confusing
The Florida loan modification process is not easy. It normally requires a lot of paperwork, and a lot of time invested in the process. With your home on the line, you want to ensure that your application is perfect before sending it off for review. The process can confuse those unfamiliar with Florida’s real estate laws. That is why it is essential to have the help of a trusted real estate attorney to help you along the way.
Contact a Florida Loan Modification Lawyer Today
If you are facing foreclosure and are not sure if a loan modification is the right option for you, it is crucial that you speak to an experienced loan modification lawyer who may be able to help.
The Law Offices of Daryl L. Jones, P.A, is a Florida real estate law firm with over 30 years of experience helping clients navigate the loan modification process. Our goal is to help ensure that you do not lose your home. To schedule a free initial strategy session, contact us here or call 305-969-3602.