Skilled Plantation Mortgage Loan Modification Lawyer
Our Florida Law Firm Helps Homeowners Avoid Foreclosure
When you take out a mortgage or another type of loan, you don’t anticipate that it will one day become difficult or impossible to pay. However, if you do experience a change in income or your ability to pay, you don’t have to default. Your lender may be willing to adjust the terms of your loan agreement to make it easier for you to repay. If you’re considering this option, you should consult a loan modification lawyer in Fort Lauderdale.
Loan modification involves changing your loan agreement — often by extending the repayment period, reducing the interest rate, or replacing a variable rate with a fixed rate — to make payments more affordable.
The Basics of Loan Modification
Just about any kind of loan may be modified. However, before you ask for a loan modification, it’s important to understand that lenders are never obligated to modify a loan to make it easier to repay. If your lender does agree to modify your loan, they may do one (and possibly more than one) of the following:
Lower the Interest Rate
Lowering the interest rate on a loan reduces the amount you pay over time. On a large loan like a mortgage, reducing the interest rate by just a point or two may save you thousands of dollars in the long run. Sometimes, the lender may agree to reduce your interest rate for now but gradually increase it over time.
Extend the Loan Term
This is a relatively simple way to make installment loans easier to pay. If the lender adds a few months (or more) to your loan term, it lowers the amount you pay per month. However, keep in mind that with this option, you’ll pay more in interest over time.
Substitute a Fixed Rate for a Variable One
In recent years, mortgage rates have varied wildly — jumping from 2.65% in January 2021 to 7.79% in October 2023. This kind of fluctuation may increase your monthly payments by hundreds of dollars. Sometimes, converting a mortgage to a fixed rate is all it takes to make it more affordable.
Adjust Monthly Payments Based on Your Income
This is a repayment strategy commonly used for student loans. If a lender increases or decreases your monthly payments with your income, it may be easier for you to achieve some level of financial stability.
Forgive a Portion of the Principal
Rarely, a lender may reduce the principal, or original loan amount, to reduce the amount you have to repay. If your lender goes this route, you may owe taxes on the total amount of principal forgiven.
Not sure if a loan modification is right for you? Call The Law Office of Carlos M. Amor, P.A. at 954-453-7200 to schedule your free case consultation.
Loan Modification and Your Credit
Before deciding on a loan modification, many people are understandably concerned that modifying a loan might harm their credit. In some instances, loan modification may be reported as a type of debt settlement, and settled debt may sometimes lower your credit score. However, debt settlement causes far less damage to your credit than defaulting on a loan.
Qualifying for a Loan Modification
Understanding the Application Process
Most of the time, you can’t simply call your lender, ask for a loan modification, and receive one. Generally speaking, both of the following must apply:
- You are facing financial hardship.
- The lender is confident you’ll be able to keep up with the revised loan terms.
When you apply for a loan modification, you will likely have to provide evidence that you meet the lender’s hardship requirements. You might qualify if you’re in any of the following situations:
- You have developed a long-term disability or illness.
- You have less household income because of a divorce.
- You have less household income because your spouse has died.
- You have suffered a major loss of property (and the loss wasn’t covered by insurance).
If the lender can tell that you’re facing financial hardship, they will then want to verify that you’ll be able to repay a modified loan. They will likely ask for some of the same information they did when you applied for the loan:
- Your credit scores
- Any outstanding debts you have
- Proof of current income
- Proof of savings
- Proof of disability/retirement benefits.
Gathering all necessary evidence and applying for the modification itself might seem overwhelming. When you have the help of an experienced attorney, the process becomes less stressful — and you may be more likely to see a positive outcome.
How a Ft. Lauderdale Loan Modification Lawyer May Help
If you choose to enlist the help of a lawyer when applying for loan modification, your attorney might be able to do the following:
Evaluate Your Circumstances
If your lawyer understands the terms of your loan and your financial situation, they will be better equipped to advocate for you.
Identify Opportunities
Most of the time, loan modification involves working directly with your lender. However, your lawyer may look to see if you qualify for any loan modification programs offered by government agencies.
Negotiate With Your Lender
This is one of the areas where having an attorney matters most. Your attorney may present evidence of your financial hardship and advocate for you when talking to the lender. Loan modification lawyers have a strong understanding of which negotiation tactics tend to work.
Protect You From Foreclosure
If your financial situation is so precarious that you may be facing foreclosure, having an attorney is even more critical. Your lawyer will understand the laws surrounding foreclosure, and they may be able to take action to protect your home and future.
Having Trouble Keeping Up With Loan Payments?
Don’t Let Financial Insecurity Take Over Your Life
Many people facing financial hardship wait until they’re on the brink of a crisis to reach out for help. However, the earlier you contact a loan modification lawyer, the better your chances of successfully adjusting your loan terms. Attorney Carlos M. Amor has extensive experience helping homeowners navigate real estate transactions, loan modifications, and foreclosures. If you’re struggling with mortgage payments, don’t wait — get in touch with him today.
For a free case evaluation, call The Law Office of Carlos M. Amor, P.A. at 954-453-7200.
ATTORNEY CARLOS M. AMOR
Carlos M. Amor is a skilled and experienced attorney and real estate broker. His legal practice in South Florida focuses on real estate litigation, real estate investments, tax deed and foreclosure auction purchases, traditional real estate transactions, short sales, foreclosure defense, and civil litigation. Carlos thinks “outside the box” and takes a practical approach to finding solutions that benefit his clients. [ ATTORNEY BIO ]
