Florida borrowers that are behind in their mortgage payments are opting for a loan modification to help them keep their homes and make their monthly mortgage payments more affordable. If you are thinking about obtaining a loan modification, you should speak to your lender right away. It is also a good idea to talk to a Florida modification attorney.
The Process
The modification process works as follows:
- You should contact your lender to find out if you qualify.
- Hire a modification attorney to help you with the negotiations.
- Submit a hardship letter, financial documentation, authorization letter and an application
- Follow-up with your lender to make sure they received the documents.
- Have your attorney review your loan documents to see if your lender committed any predatory loan practices or violated any lending laws at the time they processed your original loan. If they did, your attorney can use this as leverage to negotiate better terms for your modification.
- Wait for a negotiator to be assigned to your file.
- The negotiator will contact you if they need additional information. Expect the process to take a couple months because lenders have many requests for modifications and not enough staff to process them.
- The negotiator will advise you or your attorney if they modification has been approved or disapproved.
If your modification is disapproved, you may qualify for other foreclosure options such as short sale, deed in lieu or forbearance. Your attorney can explain what to do next.
Tips to Getting Your Modification Approved
Here are some tips to help you get your modification approved:
- The best advice is to use an experienced Florida modification attorney to negotiate with your lender. The attorney handles modification on a routine basis, has established relationships with loss mitigation departments of lenders and can get you better results.
- Start the process early before your lender files a foreclosure notice against you.
- Keep your lender advised of your intentions.
- Don’t forget to include all the financial information that your lender requests including your last two paycheck stubs, your W-2’s or 1099’s, your last two year’s income tax returns, bank statements, hardship letter, and a financial statement.
- Make sure you calculate your new monthly payment to see if you can afford it. Your lender wants to make sure that you have sufficient income to make the new payment. Your new payment should not exceed 31% of your gross monthly income.
- Keep following up with your lender so your lender doesn’t forget about your application or lose it.
If you follow these tips, you have a much better chance of getting your modification approved.
When to Get Legal Help
Modifications can be complex, and lenders are difficult to deal with. Using a modification attorney makes the process quicker and more efficient because the attorney is an expert at negotiating modifications and understands the foreclosure prevention laws.
