A home is more than just a building — it is a place where Florida families make memories, put up decorations to make their own and lay down roots for the future. Unfortunately, financial changes of any kind can threaten one’s ability to keep a home. Mortgage modification may be an option for some homeowners struggling to keep up with their monthly payments.
Whether due to illness, job loss or another unexpected financial hurdle, many people feel a great sense of devastation and shame at the thought of foreclosure. However, it is possible to keep people in their homes while also satisfying the bank. The mortgage modification process gives individuals the ability to modify parts of their contract, leading to more manageable payments. Lenders also benefit from this process, as it makes it more likely that they will recover the money they are owed.
Common modifications include lower interest rates, longer loan terms, small principal payments, a temporary suspension of payments and more. In some cases, a modification of a single term is sufficient. For others, multiple changes to the mortgage contract are necessary to lower payments to a more realistic level.
Although for many people modifying a mortgage is ideal when compared to foreclosure, it is not a quick solution. Florida homeowners must engage in negotiations with their lenders to reach an agreeable solution, and they will also have to prove their financial hardship. It takes time, dedication and knowledge to fully utilize the potentials of a mortgage modification.