There is no question that sky rocketing unemployment combined with the fallout of sub prime lending, mortgage interest rate adjustments/increases and property value decreases have led to a record default rate on mortgages across the State of Florida and nationwide. This “perfect storm” has left many homeowners in a dire financial hardship where they can no longer pay their loan when due under the current loan terms. As such, a change in the loan’s term, interest rate or monthly payment will be necessary in order for many homeowners to keep their homes. Most lenders have recognized this crisis and have loan modification programs in place to assist homeowners in keeping their homes. Each lender has different loan modification programs which may be available to assist you in keeping your home including, but not limited to, the Federal Government’s Home Affordable Modification Program (“HAMP”), and other internal modification programs which differ from lender to lender. In addition, the State of Florida Attorney General has entered into Settlement Agreements with major institutional lenders which require that the subject lenders modify certain loans in accordance with those Settlement Agreements.
The loan modification process, much like the short sale process, is very detailed, cumbersome, lengthy, frustrating and uncertain. To make matters even more complicated, lenders do not generally publish or disclose their internal loan modification guidelines so homeowners are unable to determine on their own whether they will qualify for a certain loan modification program. Despite these challenges, the real estate attorneys at Syprett Meshad have successfully completed many loan modifications helping many local families keep their homes. Although a loan modification can never be guaranteed on any certain terms, the assistance of a real estate attorney experienced in loan modifications can be of substantial benefit to you in the loan modification process.