With the devastating downturn in the economy and real estate market, many homeowners found themselves “underwater” on their mortgages owing hundreds of thousands more than their homes could be sold for in the current market. Combine this with loss of a job or reduction of income and many homeowners had to either walk away from their homes or helplessly watch as their nest egg was foreclosed upon. An alternative to foreclosure for some is a loan modification. It is not easy to get a loan modification, and it is in your best interests to work with a Clermont loan modification lawyer if you decide to pursue one.
What Is a Loan Modification?
Contrary to what many people think, loan mods are not new. They were used in previous severe economic downturns, such as the Great Depression. In essence, it takes into account the current income of the borrower and provides a reduction in monthly payments to below 31% of this.Your Clermont real estate lawyer will tell you that just because you are unable to make your current house payment, you are not automatically qualified. Rather, you will need to do the following:
• Prove financial hardship. This must be significant enough to disallow you from making your monthly house payment.
• Currently have an income. You cannot be out of work and get a modification. The lender wants assurance that you will be able to pay the new monthly mortgage; otherwise, there would be no point to allowing you a modification.
• Show that your monthly house payment exceeds 31% of your gross income.
What Are the Advantages and Disadvantages of a Modification?
The greatest advantage of obtaining a loan modification is that you are thereby allowed to stay in your home while paying a monthly payment you can afford. This is usually a borrower’s last option before seeking personal bankruptcy or allowing the home to be foreclosed upon. One signification disadvantage to a modification is that it records much like a bankruptcy on your credit report. Given that many homeowners seeking modifications are likely behind on payments anyway, and perhaps are not current on other bills, this may not be as deleterious a result as it otherwise might be.
Call Today If You Want To Speak To A Clermont Loan Modification Attorney
You may find yourself dealing with a lender who is unethical and has no true interest in helping you keep your home. Make sure that you have legal representation on your side—you can be sure that the lender does. Call a Clermont real estate lawyer today: Merideth Nagel, P.A., Attorney at Law. 352-404-4634.
Serving West Orange County, Lake County, Sumter County & Marion County
The more I get to know her the more convinced I am that she is the right attorney for me. The compassion and integrity I have seen is quite remarkable and I highly recommend you use her office to service… ~ Kelly,
Ms. Nagel represented my wife and I in a bankruptcy case and also in a recent real estate transaction. I felt compelled to share our experience. Ms Nagel and all of her staff handled everything in a very professional matter… ~ Mike,
Merideth Nagel has been a help to me, over the last 10 years, for multiple legal issues! As her client, and as a realtor who utilizes her real estate and title services, Merideth, along with her phenomenal staff, has afforded… ~ Tiki Jackson,
“If it weren't for Merideth Nagel and her top-notch team of seasoned professionals, I shudder to think where my family would be today. At this firm, you are not a name, a face, a case number, or a quagmire. You… ~ Heather, Clermont
“Merideth and her team have been a real blessing to me over the years! She helped me with real estate several times and estate planning. I can recommend her with full confidence!” ~ Nancy, Orlando
“We utilized Nagel Law to assist us with a real estate transaction a little over a year ago. Merideth and her entire staff treated us with the utmost professionalism as well as eased our minds pertaining to this transaction. We… ~ Lynette, Orlando