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Loan Modification vs. Bankruptcy Archives

Couple seeking loan modification faced foreclosure

Many Florida residents and others across the country experienced financial difficulty in the recent mortgage crisis. In efforts to avoid foreclosure, some homeowners started the loan modification process. Working with financial institutions to lower monthly mortgage payments enabled some to stay in their homes. Despite following instructions from their bank, one couple's efforts to get their loan modified resulted in unexpected foreclosure proceedings.

Loan modification popular option for consumers

Many Florida homeowners experiencing financial difficulties are considering all possible options when it comes to avoiding foreclosure and keeping their homes. A loan modification is often a welcome remedy for families struggling to stay current with house payments and meet other obligations. Approximately 29,000 homeowners had their loans permanently modified in Jan. 2017.

Ruling on post-bankruptcy loan modification benefits borrowers

Florida residents overwhelmed by debt may choose bankruptcy as an option in getting a fresh start with their finances. Several issues arise when a loan modification is sought following a bankruptcy discharge. A recent ruling by a judge in the nation's Bankruptcy Court may make the situation more difficult for lenders in this situation.

Recent loan modification defaults faster than in previous years

A prominent credit rating agency has published a report on lending trends in Florida and across the country. One area of interest was the default rate for loans that were modified. The study states that a loan modification that took place since 2014 was more like to re-default faster than a loan that was modified earlier.

End of federal program will change loan modification program

The new administration in Washington has no plans to replace a program that expired in December after being in place for the past eight years. The Home Affordable Modification Program was established in 2009 in an effort to help struggling families during the mortgage crisis. Many Florida residents and others across the country whose objective was avoiding home foreclosure through loan modification hoped to participate in the program. However, the program was not as successful as the former administration had hoped.

Avoiding home foreclosure can be a slippery slope

When finances are strained, making a mortgage loan payment could be difficult. Missing even one payment could begin a slippery slope to avoiding home foreclosure. Most Florida residents will exhaust all of their options trying to save their homes.

Beware of loan modification schemes

When Florida homeowners are unable to make their mortgage payments, they can begin to panic and look for a way to avoid losing their homes. It is this group of people that can easily become the target of loan modification schemes. Recently, two men were recently sentenced to prison for taking advantage of their victims' fears, and four others are awaiting sentencing.

Be wary of companies that promise you a loan modification

Too many Florida homeowners understand the uncertainty of whether they will be able to keep their homes because they are unable to make the payments. It is that uncertainty and fear upon which mortgage debt relief companies prey. Every homeowner should be wary of any company that promises that it can provide him or her with a loan modification for a fee.

A loan modification could help in avoiding home foreclosure

Florida homeowners continue to have problems making their mortgage payments despite the upturn in the economy across the nation. Some homeowners might be able to negotiate a loan modification with their lenders as a way of avoiding home foreclosure. For those who want to keep their homes, attempting to modify their loans is often the first step.

The FHFA could make avoiding home foreclosure easier for some

Despite the fact that the recession and the housing market crash are considered to be over, there are still thousands of homeowners here in Florida and elsewhere whose mortgages are underwater (homeowners owe more than the home is worth). In response to this, the Federal Housing Finance Agency (FHFA) wants to make avoiding home foreclosure easier for some. Fannie Mae and Freddie Mac, which are regulated mainly by the FHFA, might be in a position to help some 33,000 homeowners who are seriously delinquent on their mortgage loans.

Paul Urich
Orlando Office

Law Office of Paul L. Urich, P.A.
1510 East Colonial Drive
Suite 204
Orlando, FL 32803
Phone: 407-896-3077
Fax: 407-896-3041

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