Florida homeowners continue to have problems making their mortgage payments despite the upturn in the economy across the nation. Some homeowners might be able to negotiate a loan modification with their lenders as a way of avoiding home foreclosure. For those who want to keep their homes, attempting to modify their loans is often the first step.
Before going to the lender with a request for a loan modification, it would be a good idea to gather some documentation. Tax returns, pay stubs and mortgage information, along with documentation about other sources of income, if any, are a good place to start. One important component that many people find a challenge to create, or forgot to include at all, is a letter explaining your situation.
Every Florida homeowner has unique reasons why making mortgage loan payments is difficult. It might help the lender to understand the situation. Depending on the circumstances, the lender might agree to postpone payments for a specified period of time, lower the interest rate or even extend the loan in order to make it easier for the homeowner to make payments.
However, obtaining a loan modification is not guaranteed. The lender is not necessarily obligated to work with the homeowner. If that becomes the case, then the homeowner might need to consider other options such as a bankruptcy. In any case, it would be beneficial to speak with an attorney about the situation before embarking on any negotiations with the lender in order to fully understand the options available.
Source: realtor.com, “What Is a Loan Modification? Can It Help Homeowners in Trouble?“, Lisa Johnson Mandell, July 5, 2016