Loan Modifications in Tampa and elsewhere in Florida:
Banks strive to avoid foreclosure proceedings as much as the homeowner does. The foreclosure process is not only a lengthy process, but it creates additional costs for any parties involved. In many cases, the homeowner may have difficulty receiving their requested modification, however, Fernandez Law Group and our skilled attorneys have been extremely successful in working with the banks to reverse that trend.
Homeowners who are current, past due, in default, or already in foreclosure may opt to modify the original terms of their loan agreement with their lender. Lenders typically offer greater flexibility when modifying loans. By modifying the terms of the homeowners' mortgage loans, lenders are able to offer monthly mortgage payments at a more affordable rate. Loan Modifications are implemented to make a property more affordable for a homeowner by altering loan factors such as interest rate, principal balance, late fees, or other loan penalties.
Our qualified attorneys are highly experienced at bringing the two parties together and aggressively securing the best loan modification plan for both the lender and the homeowner.
What is a Loan Modification?
A Loan Modification is an agreement that is negotiated with your lender whereby the original terms and conditions of the promissory note secured by your mortgage are changed. The change can be to one or more terms of the loan such as a reduction in the interest rate, an extension of the term for repayment, a reduction in the principal balance or any combination of these.
The most common misconception is that loan modification is easy to get and can be handled by simply applying with the lender. The reality is that most homeowners do not have the knowledge and resources needed to see success through the process. Many homeowners have great difficulties in the modification process party due to the misconception and misleading information that is displayed by the media and other sources that they seek information and help from. The percentage of homeowners that actually get permanent modifications is very low, and to often homeowners are denied because they do not understand how to properly structure their case for a modification.
Hiring a trained professional like those at the Fernandez Law Group can often reduce the amount of time and risk for error by processing your paperwork efficiently, and presenting your application in the exact manner that each lender wants it.
Prior to your free attorney consultation, our firm will perform the following:
- Review your particular financial situation in detail during the application process to ensure that we have obtained all relevant information necessary to review your case and maximize your prospects for a successful modification.
- Take down your financial information so that we can match with the program guidelines set forth by your investor/lender.
- Review with you your current household budget to determine whether you qualify for the programs made available by your investor/lender.
- Determine with you the maximum monthly mortgage payment you can afford to make given your current income if you were to receive a modification and recalculate that payment as necessary to ensure you are able to continue making any modified payment on a go forward basis.
- Contact your lender to determine what modification programs are available and if you meet the particular guidelines of each program offered.
- Upon obtaining the foregoing information, your case manager will review the information with you in detail and determine whether you wish to schedule a free consultation with the actual attorney who will represent you.
HERE ARE JUST A FEW SUCCESS STORIES OF OUR LOAN MODIFICATION SERVICES AND HOW THEY'VE HELPED OUR CLIENTS:
- Forbearance Plan to a Modification:
Our client was 46 payments in arrears and his hardship was a job loss. After several years of collecting unemployment our client finally started a new job. The lender was not comfortable with the new found job, however our office was aware of the guidelines for this particular investor and worked out a six month forbearance plan for our client. This forbearance allowed our client to begin making mortgage payments again. At the end of the six month forbearance period, we were able to roll our client into a modification. The arrears of $33,475 were added to the back of the note and the new interest rate was 3.675%.
- Fannie Mae Modification:
Our client was behind on their mortgage for 18 months, a total of $39,450.00 in arrears. Our client's hardship was a loss of income as a self-employed individual. We were able to work with the lender as to which they rolled the arrears into the current unpaid principle balance of $321,716 with a recast of the note at 5.75%. The term of the loan was also extended to 40 years.
- Second Mortgage Default:
Our office will negotiate payment plans and or balance reductions for Charged Off Second Mortgages. Our client had started to recover from his hardship and as such was able to show the lender that he now wanted to take responsibility of the defaulted second mortgage. The defaulted amount was $110,633. We negotiated the defaulted amount down to $42,000 that began with a $5,000 down payment and the remaining balance to be paid over 74 months at $500 a month. There was also no interest accruing on the remaining balance.
- National Settlement Modification Program
Huge principle balance reduction based on today's Market Value.
The client did not make a mortgage payment for 66 months, an estimated arrearage of $141,181. The unpaid principle balance of this note was $161,599. The lender had an new total balance due on this property of $302,788. The lender did a principle balance reduction of $172,780, they also deferred an additional amount $12,151. This plan is a 2% start rate for the first five years and then on year eight becomes fixed at 4.25% for the balance of the new thirty year note. Old payment was $1,308 and new payment is $1,001 based on a new loan balance of $117,848.
- HAMP Program
Client had to wait until her Social Security Disability was approved which took a few years. The home was kept in foreclosure defense until her award was sent to her. Consequently the client did not make mortgage payments for 53 months. The lender deferred $22,000 and the new note balance is $52,711. This plan is a 2% start rate for the first five years and then on year eight becomes fixed at 4.125% for the balance of the new forty year note. Her old payment was $578.00 and her new payment is $427.00.
- Internal Modification with Private Investor
This client did not make a mortgage payment for 53 months, a new total due on this property of $439,202. The lender did a principle balance reduction of $129,297. The new modified loan amount is $304,000 The new interest rate is 4.12%. The old payment was $2,222.00 which did not include taxes or insurance, the new principle and interest payment of $1,954.00 and escrows of $1,003.00.This file had a set sale date within 90 days.
- A client was working with a government recognized "Non Profit" - (Free Servicing Company) for a Loan Modification. The client was denied for all Loan Modification options. Our Firm WAS ABLE to get an alternative 3 month trial Loan Mod program! The old payment was $1865 and we negotiated a NEW Payment of just $1385, with 18 payments in rears!
- Fannie Mae Trial Modification Plan
3 month trial plan. Rate recast to take the old payment of $1382.00 PITI to the new payment PITI of $778.85. The term was extended to 40 years, with the client receiving a principle balance reduction of 20% to make the payment sustainable.
- Lender Internal Trial Modification Plan
3 month trial plan. Rate recast back to a 30 year term with an interest rate of 4.875%. The old payment was $2,851.52 PITI and the new payment is $2,340.00 PITI.
- Fernandez Law Group helped modify a loan in late December 2011. The old payment was $937.34 per month, and the NEW Payment is now just $597.47 per month with 11 payments down deferred to the rear of the loan.
Our firm will perform all of the aforementioned services free of charge - prior to the attorney consultation without requiring you to enter into any contracts or to otherwise obligate yourself in any way. Information concerning applicable fees for services rendered will be made available at the homeowner’s and/or will be discussed in detailed during your consultation with one of our attorneys. Contact our office at 813-489-3222 for a free no-obligation consultation.
The information on this firm's website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. The information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.
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Additional Foreclosure Defense Information:
Additional information about Loan Modifications:
Additional information on Short Sales:
Content authored by Gaston Fernandez
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