If you are looking for a temporary reprieve from your loan obligations, you are probably falling behind on your payments — either because you were prequalified for a loan that is out of your reach or because you have recently sustained extra expenses or job loss. Before you decide to apply for a temporary loan modification, you should ask yourself whether the reprieve is actually going to make a significant difference in your ability to catch up on outstanding loan payments. It may be useful to talk to a Florida lawyer with loan-modification experience before you decide how to proceed with your bank lender.
If a temporary reprieve from repayment is precisely what you need to catch up on your bills and/or missed payments, an attorney can help you work out a Loan Modification Agreement or a Forbearance Agreement that precisely matches what you need or expect from your residential or commercial real estate lender. Most lenders are willing to work with you if you have a history of good credit and can be expected to catch up on payments within a timely manner. A lawyer can help to ensure that banks deal with you fairly.
In other cases, it may become apparent that a “temporary” loan modification amounts to throwing away good money on a bad investment in real estate — particularly if the face value of your outstanding loan exceeds the worth of your property in today’s real estate market. You may want to review an article that outlines mortgage options for underwater homeowners, and describes the benefits of short sales and foreclosures for people who owe more on a mortgage than the property is actually worth.
For more information about loan modification agreements in Florida, contact an experienced attorney.
Posted in Bankruptcy