Due to economic turmoil, foreclosures in many U.S. markets peaked in 2010 and have steadily decreased in most parts of the nation since then. However, foreclosure activity in the Miami-Dade and Broward areas remains at record levels. The loss of a property from foreclosure greatly impacts yourself, your family, and your credit. As such, you should do all that you can to avoid foreclosure. Fortunately, loan modifications and short sales are widely available to homeowners that are proactive in resolving their homeownership issues.
Many lenders are now realizing that loan modifications can result in a “win-win” scenario for both the borrower and the bank. Instead of ignoring notices from your lender, you should do your best to get to the negotiation table to modify your loan by hiring an experienced loan modification attorney.What is a Loan Modification?
A loan modification is an agreement between a lender and a delinquent borrower in order to put the loan back on track. It involves re-negotiating and rescheduling the loan in order to keep it current. In a loan modification, the borrower benefits from a smaller installment amount and possibly a longer payback period.
Here are some of the ways a loan workout can benefit you:
- It can reduce your mortgage’s interest rate to the current rate, which is usually lower than what you are paying.
- It can convert your payment from a variable rate to a fixed rate mortgage, effectively bringing monthly payments down.
- You can extend the payment period, lowering monthly payments, giving you ample time to get back on your financial feet.
- You can re-amortize the loan by computing your missed payments into the principal balance. It is almost like having a brand new loan.
Obtaining advice from experienced real estate lawyers is the first step to a loan modification. Professional legal counsel with ample knowledge on real estate law will help you consider your options and get started on understanding foreclosure and consumer protection laws.
Your real estate lawyer at ESQ.title will help you weave through the intricate process of a loan modification. The real estate lawyers at ESQ.title have achieved lowered interest rates, affordable monthly payments, and a modified loan term that is concurrent to their client’s financial standing. In short, loan modifications that are feasible and that help avoid foreclosure.
Below are four steps you can take for a successful loan workout together with your lawyer:
- Be honest. Lay your cards on the table and allow your real estate lawyer to assess your situation. This does not just involve your financial situation; it also includes an analysis of your property’s value.
- Consult your lawyer for any legal claims you may have against your lender.
- Discuss a realistic loan workout that you can comply with in the long-term.
- Together with your lawyer, sit down at the negotiating table and attempt a mutually beneficial loan workout between you and the lender.
If you or anyone you know is in need of legal assistance in a loan modification, foreclosure, or short sale in Miami, Broward, or Palm Beach County, please contact ESQ.title today for a free consultation at 305-501-2836.