Real Estate, Financial
Loan Modification: In response to the economic devastation caused by the subprime mortgage crisis of 2008, the federal government created the Home Affordable Modification Program. The goal of this program is to provide homeowners who have distressed mortgages with assistance in obtaining a loan modification, which makes it easier for them to afford their monthly mortgage payments. It is run by the U.S. Department of the Treasury, and in essence, it works by offering incentives to mortgage lenders to modify distressed home loans rather than foreclose on them.
As good as this program may look on paper, it has unfortunately not worked out as well as originally intended. Homeowners attempting to take advantage of its benefits often end up bogged down in a quagmire of paperwork and bureaucratic red tape, resulting in a denial of a requested modification and the loss of their homes to foreclosure anyway. Even worse, many lenders will require a homeowner to apply through the program despite knowing that they won’t qualify simply so that they can report to the government that they made an effort to help the borrower before moving forward with foreclosure.
Applying for a loan modification involves changing the original terms of your mortgage note) to better suit the capabilities of the borrower. Loan modification is a complicated multi-step process. It is best to seek advice and counsel from The Law Offices of Justin McMurray, P.A. for your loan modification concerns and other bankruptcy and foreclosure issues to ensure that you indeed doing everything possible to stay in your home.
Our lawyers can help you determine if you may be eligible; To be qualified for a loan modification program you must have income. By itself, unemployment benefits are not enough to qualify you for a loan modification. Having a positive budget means having extra money left after paying off all your monthly expenses. Some pre-qualification criteria for a Jacksonville loan modification include: non vacant homes, suffering financial hardship that makes mortgage payment unaffordable, having a steady income, and having a desire to keep your property.
Our lawyers will also help you formulate an action plan; Lenders will be more willing to agree on modified loan terms if they see that you are willing to reduce your expenses, find new sources of income and do everything in your power to manage your problem. Our lawyers can help you draft a hardship letter that should not only explain to the lender why you fell behind on your loan or mortgage payments, but also how you are working to manage the crisis. We will also talk to your lender to explain your situation in a clear and brief manner. Having a lawyer who specializes in loan modifications will allow you to get all the information you need to start on your application, ranging from tax forms to income verification stubs, your hardship letter, positive household budget, current bank statements, tax returns, and important IRS forms.
Finally, we can demonstrate to your lenders that you are proactive about your application and are keen in keeping your property. The process does not stop at simply sending the documentary requirements and forgetting about the application. Our processing Agent will continue to contact your lender to follow up on your application, ensuring a response within the predetermined period all while keeping you well informed uploading all communication to your privet Login Portal in our website.