There are plenty of loss prevention and mitigation options available to homeowners in need. Loan modification (what banks call “mortgage modification”) is one of the first places people often start. As documented proof of your financial hardship, it’s one of the most popular approaches for reaching a fair settlement for both you and the bank and can help avoid the potential of a costly foreclosure.
Missed a few payments? Falling behind? Or just worried about falling behind?
So what’s the trouble? One of the most common things we hear from clients is how frustrating it can be to deal with banks throughout the mortgage modification process. Many banks are slow and unresponsive to applications. Others may weigh you down with forms or difficult-to-find documentation. Too often, this leads to borrowers like you either giving up or missing deadlines and allowing the bank to proceed with their foreclosure.
As foreclosure attorneys experienced in all walks of the legal process, we’ve seen almost every situation. We know exactly what the bank is looking for — and we know exactly how to help you find it. When it comes to mortgage modification applications, we’ve helped dozens of clients file their paperwork and meet the bank’s expectations.
If you’re having difficulty qualifying for a mortgage modification or you’re simply looking to move on from your home, a short sale may be your best option.
If your lender is willing to agree to a short sale — be it a bank or any other lending agency — it means they are open to accepting a mortgage payoff less than what you actually owe in order to facilitate its sale. It’s often a better, more dignified way of resolving your outstanding payments than a lengthy, potentially embarrassing foreclosure process. And compared to a foreclosure, it may help you rescue some of the credit you’ve built up along the way.
After we’ve consulted with you about your options, we can help you negotiate with the bank to organize a short sale under terms that work for everyone. We’ll tell you what makes sense — and what doesn’t. What’s fair — and what isn’t.
We’ll go to bat for you, ensuring you don’t get pinned with unnecessary short sale fees or run-arounds from the bank.
Deed In Lieu Of Foreclosure
A deed in lieu of foreclosure can also help you resolve some or all financial liabilities, transferring your home’s title to the bank that already maintains your mortgage. If your bank has already rejected a short sale offer or other loan modification effort, they may be interested in discussing a deed in lieu of foreclosure — it often helps cut down on litigation fees or lengthy processing periods.
The bank, however, isn’t required to extend a deed in lieu of foreclosure. And you may need someone with expert knowledge on your side to help you navigate the process and terms of the agreement. For example, you may even be able to reach an agreement with the bank that transfers your deed but lets you immediately lease the property back, keeping you in the same home with a more reasonable rent payment.
Our firm can help you work out the terms and protect your best interests along the way.
Mortgage Forbearance Agreement
A mortgage forbearance agreement is an act of good faith between lenders and borrowers, allowing borrowers to effectively put a pause on their mortgage payments until they’re in a better position to repay their debts.
Mortgage forbearance agreements typically set out conditions under which the lender agrees to ignore its legal right to foreclosure, so long as a borrower can prove their financial hardship and agree on a time frame to make up missed payments — oftentimes including principal, interest, taxes, and insurance.
If you think you might be eligible for a mortgage forbearance agreement, get in touch. We’ll talk about what it could mean for your financial health and help you draft an agreement between you and your bank.