Facing foreclosure of your home is something no one envisions when singing their mortgage. However, the events of life sometimes put honest people in unfortunate financial situations. There are options available to avoid foreclosure, and when trying to save your home you should use your best efforts to explore every avenue. Aside from challenging the validity of a foreclosure proceeding you can attempt a short sale, seek the protection of bankruptcy, or ask that your loan be modified.
There are several loan modification programs available to distressed homeowners. One of the most popular programs is the Making Homes Affordable Act (HAMP) Program. This program is one that your current lender may participate in, and that should be your first place you inquire for eligibility. Some benefits of this program include:
● Reduced interest rates, which will significantly lower your monthly payment. If your payment is unreasonably high, the savings can be great, making a new lower payment more manageable and more in line with your monthly budget.
● Skipping a payment, maybe even two. When you modify your loan under any modification program the chances are high that you will skip at least one required monthly payment. This can free up disposable income, which gives you the opportunity to focus on other, more pressing debt.
● Shorter repayment terms, which will save thousands of dollars in interest.
A loan modification is a useful tool when trying to save your home from foreclosure. Not only will you enjoy a lower payment, but in many instances seeking modification works to place a foreclosure proceeding on hold. This can give you the breathing room you need to get a handle on your finances and develop a plan that fits works for your bank account. The process can be confusing though, so the assistance of a skilled financial planning attorney is helpful. Call our office for more information and to learn your options.
If you are facing foreclosure and interested in a loan modification, let an experienced attorney help you. We fight to protect your rights so you can work to save your home. Call a Plantation, Florida debt relief attorney today for more information.