There are times when a homeowner has difficulty keeping up with mortgage payments. That struggle may be temporary or for the long-term. Sometimes, Florida homeowner may be unsure whether or not he or she will ever feel financially secure enough to keep up with home mortgage payments. While the urge to seek a loan modification may be strong when it is touted as a quick solution, it makes sense to consider all of your options before modifying your loan.
One downside of jumping straight into the loan modification process before exploring other options is that the homeowner seeking the modification has no leverage for negotiating a resolution that works in that homeowner’s favor. If bankruptcy is filed beforehand, the quest for a loan modification may be handled differently and more in line with what may be best for that individual homeowner. Filing also freezes any foreclosure action, giving you time to explore all alternatives.
Another option that may be more beneficial than a loan modification may be if a second mortgage is stripped. Under Chapter 13 bankruptcy, a second mortgage can be discharged under certain circumstances. Once this added monthly expense is eliminated, a homeowner may be able to keep up with the original mortgage and avoid the possibility of home foreclosure or the need for a loan modification.
While obtaining a loan modification has helped many struggling homeowners keep their Florida homes, it is not the perfect solution for every situation. Knowing all options for working toward repaying debt, repaying back due mortgage payments and regaining financial stability can be the first step to understanding what the best course of action may be for your individual situation. Our firm has more information online about alternatives to modifying your loan and keeping your home.