Deerfield Beach Loan Modification Attorney
Your home loan might be your biggest monthly payment and the most difficult one to keep up with. It is almost certainly your largest debt overall, and your home is likely your most precious asset as well. What can you do when you can’t make your mortgage payments? Bankruptcy is one option, either by freeing up income and ridding debt through Chapter 7 or staving off foreclosure and stripping away junior liens through Chapter 13. But even before filing for bankruptcy, you might be able to get right-side-up on your mortgage through a loan modification.
A mortgage loan modification can provide valuable debt relief and help you keep your home, but it must be approached carefully and conducted with the help of an experienced professional. Otherwise, you risk wasting valuable time and energy while still putting your home at risk and falling deeper into debt. A skilled Deerfield Beach loan modification attorney at the Law Office of Adam I. Skolnik, P.A., can help you understand the ins and outs of loan modifications and determine whether this step is right for you. If so, Florida attorney Adam Skolnik will negotiate a loan workout on your behalf that is practical, effective and meets your needs.
What Can a Loan Modification Do?
A loan modification is the result of a negotiation between you (through your lawyer) and the lender. The terms of a loan modification, therefore, can be whatever benefits you the most and can be achieved through negotiations with the bank. For instance, a loan modification could result in any of the following:
- A lower interest rate
- Lowering the outstanding principal balance
- Reduced monthly payments
- Re-amortizing the loan
- Extending the length of the loan with additional pay periods
- Pushing past due amounts to the end of the loan
Why Would Lenders Agree to a Loan Modification?
Lenders know that if you can’t make your payments and wind up in default, their only recourse is to foreclose on the property. While foreclosure might be something you fear the most, lenders don’t want to see it either. After foreclosing, they are stuck with a piece of property on their hands. The bank has to go through the trouble of readying the house for sale, advertising and holding an auction, only to get a fraction of what was owed. They would much rather have a homeowner in the house making payments, even if they have to modify the mortgage somewhat. Also, lenders know that homeowners in dire straits might file bankruptcy, which could negatively impact their financial interest. With a skilled and knowledgeable attorney representing you, you’ll have a decent amount of leverage and bargaining power to negotiate a reasonable workout.
Are There Downsides to Loan Modifications?
Just because you enter negotiations with the bank, there is no guarantee that you will wind up with a modification. Lenders are not required to agree to workouts, even if they are participating in federal programs like Making Home Affordable. Also, if you have a high debt-to-income ratio, you might not be a good candidate for a loan modification. You could invest a lot of time and money in a loan modification that doesn’t pan out, and you could wind up further behind than when you started. Also, some homeowners think they have negotiated a modification, but it turns out to be only temporary, and after a few months, their mortgage payment shoots right back up to where it was before. Banks have also been known to pursue foreclosures against homeowners in default, even while they have the homeowner in the middle of a workout negotiation. The Law Office of Adam I. Skolnik, P.A., represents homeowners in disputes over mortgage servicing violations like these.
Many homeowners are struggling because they are upside-down or underwater on their mortgage, owing more on the mortgage than the home is worth on the market. It’s not likely that the lender would agree to modify the mortgage to the home’s market value, but this is something Chapter 13 bankruptcy can accomplish through processes known as cramdown or lien-stripping. You might think that loan modification seems less drastic than bankruptcy, but bankruptcy might be the better option, and it’s worth considering.
Call Adam I. Skolnik for Help With a Mortgage Loan Modification in Deerfield Beach, Fort Lauderdale or Boca Raton
The key to a successful loan modification is being represented by an experienced Deerfield Beach loan modification lawyer who can advise you on whether a loan modification is in your best interest and negotiate on your behalf with the lender for an effective workout that truly meets your needs. To discuss the possibility of a loan modification on your home mortgage in Palm Beach or Broward County, call the Law Office of Adam I. Skolnik, P.A., in Deerfield Beach for a free consultation. We have the skill and knowledge necessary for success and the dedication to make it happen.
