Today, the residents of a trailer park community in Florida might find a solid reason for hope. In 2005, residents of the community came together to get a loan to buy the mobile home park area. Just as it has happened for so many borrowers in Florida and throughout the country, the economy affected their ability to afford the mortgage, and they’ve found themselves unable to meet the monthly payments.
The park is a home for residents who are 55 and older. The last thing that these older residents likely want to worry about at this point in their lives is where they are going to live and whether they will get kicked out of their homes. Perhaps today is the day that they will find comfort in the form of a loan modification agreement with the lender bank.
The Sun Sentinel reports that a representative from the bank that made the loan to the residents will be meeting with the community today. Ideally, the parties will come together and peaceably discuss solutions that will mean that the bank will receive payment from the residents and the residents will be able to afford those payments. That’s essentially what a loan modification would do. It would lower the amount of the monthly mortgage payments, allowing the residents to afford their homes and benefiting the bank because it would begin receiving more money again.
A loan modification is an option that homeowners should consider if they are at risk of losing their homes to foreclosure. The problem with the option in the past is that banks tend to drag their feet and leave struggling homeowners hanging until foreclosure is forced upon them. Though the process can sometimes feel hopeless and infuriating, it can prove fruitful, especially if a homeowner has an aggressive attorney on his side to fight for him in the process.
Source: Sun Sentinel, “Mobile home park, lender plan mediation,” Paul Owers, June 19, 2012