Loan Modification Attorney Miami
A pending foreclosure can be a stressful and frightening thing to go through. You can avoid this problem by working with your lender on adjusting your mortgage. Your loan can be modified in order to reduce the interest rate which can also increase the duration of the mortgage and make your monthly payments more affordable.
Loan Modification law firms such as Gallardo Law Firm have lawyers who can work closely with you and your bank to gain the best possible terms for you. The goal of our firm is to make your payments affordable and avoid foreclosure .
What is a loan modification?
Homeowners struggling financially can sometimes find themselves dealing with a foreclosure. It’s possible to work with a lender to get a loan modification or mortgage modification in order to work out a plan or readjusting the loan.
This will change the mortgage loan’s terms and help the borrower to afford the payments. The lender may allow the homeowner to pay a lower interest rate, refinance the loan, skip payments and add them to the total loan amount, and extend the loan’s terms.
A loan modification is negotiated between you and your lender who may agree to negotiate or modify some of the terms of your loan in order to avoid foreclosure. This process begins with contacting the mortgage company, discussing the problem, and coming up with a solution that includes modifying the loan. The purpose of a loan or mortgage modification is to reduce your monthly payments making them more affordable. There are several loan modification programs available for your convenience. A loan modification attorney Miami from a popular firm such as Gallardo Law Firm can guide you through the process.
Should you hire a Loan Modification Attorney?
Although some lenders say legal services are unnecessary, attorneys can be and have been very helpful in such cases. A loan modification attorney Miami from a firm such as Gallardo Law Firm can help you as a borrower understand your rights, negotiate with your lender, and complete the required paperwork. They can also help stop or delay foreclosure sale which gives you some time to catch up on payments.
There are some cases that may require hiring a loan modification attorney. Some borrowers may be in a position that warrants a lawyer’s assistance.
A lawyer can help the client file for bankruptcy, if necessary, in order to stop the foreclosure. The attorney can also file an order to help stop the foreclosure sale. These are generally the two typical reasons why people hire these attorneys at firms such as Gallardo Law Firm.
The average homeowner would spend many hours a week on the phone trying to work out a loan modification. If you don’t have time to take on that much work, hiring a loan modification attorney Miami it’s often the best way to solve this problem. You should exercise caution before hiring anyone to represent your legal interests. Ask for references of reputable lawyers and law firms such as Gallardo Law Firm.
Loan Modification Process with the Legal Representation of a Loan Modification Attorney Miami
Not long ago the loan modification was an option appointed only for homeowners who were in violation, that is, when your granter disposed a motion to begin the process of foreclosure, usually after 90 days of late payments. Now, homeowners are getting help before going into default. You must have a minimum knowledge about the process to be undertaken. You will need the help of a professional, a person with sufficiently experience, time to devote to the process, and the courage to fight the lenders who generally have their own lawyers.
You should determine your eligibility status before contacting your lender. Having a steady income and a positive budget are two important facts to qualify for a loan modification. A positive budget means extra cash left after paying for all your monthly payments.
As part of the application, you will need to gather most of your financial information and present it to the lender. You have to provide the lender exactly what makes the process go faster. Lenders like to see you handling your financial crisis by reducing expenses and finding solutions. This is not a time for deception since it could only make the process turn against you.
A loan modification attorney Miami can be useful in these types of cases. Sometimes homeowners aren’t sure about what to do or to say. An attorney can give you legal advice and help you know and understand your legal rights. Depending on the circumstances, the loan modification attorney may recommend fighting the foreclosure, giving up the property, or pursuing a mortgage modification.
Finding an experienced Loan Modification Attorney Miami
You shouldn’t talk to an attorney before having a checklist of questions to ask. Some things to consider before hiring a loan modification attorney are the amount of loan modifications the firm has completed, how many cases the lawyer has currently open, and how long the firm has been doing loan modifications.
You must collect the following information:
- Information about the monthly gross
- The last income tax statement
- Information about savings and assets
- Information about your first mortgage
- Information on another mortgage you may have
- Accounts and monthly minimum payments due on all your credit cards
You will need a letter explaining all the reasons that led to this situation. As part of the documentation, you have to write a hardship letter explaining the unfortunate set of circumstances that have caused you to become delinquent on your mortgage.
You should also keep in mind that when the lender presents the agreement, you are not required to sign the agreement if you cannot afford it, i.e. if the loan is too high say so and argue with reasons why you shouldn’t accept it. Explain in details how this new agreement will fall to default again. Then, show the work done by a professional and talk about the payment method that best works for you. Lenders want to avoid foreclosure since it’s extremely expensive.
Understanding different types of mortgage loans
- Fixed-rate mortgage: This is when the mortgage interest remains the same throughout the entire loan. These are some of the most popular loans. They represent about 75% of all home loans. These loans come in terms of 30, 15, and 10 years. The 30 years option is one of the most popular options. Having a fixed rate has many advantages and one of the most important ones is that the homeowner is able to know with accuracy what the principal and interest will be for the length of the loan.
- Adjustable-rate mortgage loans (ARMs): This mortgage loan has the interest rate adjusted periodically. Adjustable mortgage loans are offered at the lender’s standard adjustable rate/base rate. These loans can provide attractive interest rates, but payments are not fixed. Adjustable-rate mortgage calculators can help you find out the approximate amount of your mortgage payments. Monthly payments will increase when rates go up and decrease when rates fall.
- VA loan: This loan is guaranteed by the U.S. Department of Veterans Affairs (VA). This loan can only be used by qualified lenders. The VA loan was created in order to offer long-term financing to American veterans who are eligible and their surviving spouses. Home financing is provided in areas where private financing is not commonly available. The loan helps veterans purchase properties without the need of a down payment.
- FHA loans: This loan is provided by the Federal Housing Administration (FHA). Mortgage insurance is provided on loans by lenders approved by FHA. The FHA covers these loans on multi-family and single family homes in US. This is the largest residential mortgage insurer which ensures millions of properties since 1934, when this loan was first created.
- Reverse mortgage: This is a special category of home loan that allows the homeowner to convert part of the equity in your property into cash. The equity built up over the years is paid to you. To be eligible for this loan the homeowner must be 62 years of age or older and have the finances required to pay ongoing charges such as insurance and taxes.
Home Loan Modification: Benefits and Eligibility
Mortgages are modified to the benefit of the borrower in different ways; such ways could comprise lowering the interest rate, or changing from an adjustable to a fixed rate. In many cases, the principal amount is lowered in order to bring down the outstanding amount to the current price of the home. In addition, lenders can also extend the loan term in order to make the monthly payments more affordable.
What is HAMP (Home Affordable Modification Program)?
This program has been designed to help homeowners struggling financially to avoid foreclosure by modifying these loans in a way that is affordable for the borrowers and also sustainable over the long-term. The program offers reliable and clear loan modification guidelines that could be used by the whole mortgage industry. The HAMP has incentives for servicers, investors, and borrowers.
Applying for this program is a fundamental initial step that will help you get a more affordable mortgage. Getting a modification it’s just the start. It’s essential that you take the steps required to maintain a good standing in order to reap the benefits from the HAMP:
- Understand your mortgage’s terms.
- Modification payments must be made in full and on time.
- Have a time of preparation for future payment changes.
- In order to have long-term success in your finances, try restoring your financial health now.
Several mortgage companies such as Morgan Chase, Bank of America, Ocwen, and Wells Fargo are part of MHA programs. If your mortgage is insured, guaranteed or owned by Freddie Mac, Fannie Mae, Veterans Affairs, Federal Housing Administration (FHA), or U.S. Department of Agriculture (USDA), you should ask the mortgage company which alternatives or solutions are best for you.
Who is eligible for a Home Affordable Modification Program?
HAMP was designed in order to help homeowners struggling financially. HAMP helps modify your loan and make your monthly mortgage payment about 31% or less of the borrower’s gross income. When the borrower is eligible, the original terms of the mortgage are changed permanently. The Home Affordable Modification Program (HAMP) has several eligibility requirements including:
- The loan was obtained before January 2012.
- The borrower has documented financial hardship with probability of becoming delinquent.
- The property with the loan has one to four units.
- The borrower is able to afford a different mortgage payment
- The borrower has not being convicted of felony larceny, fraud or forgery, theft, tax evasion or money laundering in the last ten years.
Revisions or changes made to HAMP’s Tier 2 on June 1, 2012 helps to provide relief to homeowners and also make a huge impact on the housing market by helping more homeowners avoid foreclosure and reduce their monthly mortgage payments significantly. You can find out more about these revisions online.
Gallardo Law Firm can help you find a Loan Modification Attorney
Gallardo Law Firm attorneys have been defending the rights of our customers in a sensitive and compassionate manner, with the honesty and integrity they deserve in Loan Modification cases. They will deliver compelling strategies geared toward achieving the best resolution for your case. Our loan modification attorneys are qualified and have extensive knowledge in various types of loan modification programs. Our loan modification lawyers will work with you and your home lender to get the best possible terms for you.
Frequently Asked Questions about Loan Modification in Miami
- Selling your your home for less than you presently owe the bank.
- The home is given back to the lender through a “deed-in-lieu of foreclosure.'
- Applying for forbearance, which helps the lender reduce or suspend loan payments normally for up to 90 days.