Can You Avoid Foreclosure With a Loan Modification?

Statistics show that in 2008, Florida was ranked number 3 when foreclosures were concerned. Some of the hardest hit areas were Cape Coral, Port Charlotte, Ft Myers, Miami, Fort Lauderdale and Kissimmee. More and more people are being faced with foreclosure every single day, so if you feel that foreclosure is becoming an increasingly likely possibility in your future, do what you can to avoid it by considering a loan modification.

A loan modification is setup by banks, and it's a process with an aim to create a permanent solution for all Florida homeowner's so that they can continue to maintain their mortgage payments, save their home and above all: avoid foreclosure. A loan modification can help you to reduce your mortgage rate as well as extend the length of your loan or package past due payments, this will result in your mortgage payments being reduced which will allow you to pay your mortgage each month once again without defaulting.

If you are facing foreclosure, then you are in need of help, one top tip has to be to never ignore any mail or phone calls from your lender. Open every letter, answer every phone call, the sooner you are aware of your problem the sooner you will be able to take steps towards avoiding it, the last thing your bank wants is for your home to go through foreclosure, it's just as bad for them as it is for you, so the sooner you get help the better. The first step you need to take is to get a good foreclosure prevention attorney.

A foreclosure prevention attorney can help you decide if a loan modification is for you and if you are a good candidate for it. In order to be eligible for a loan modification, your monthly mortgage must be un-payable by you due to some form of financial hardship, this could include a job loss, pay reduction or even a mortgage payment increase. You will also qualify is you have an adjustable rate mortgage, or your interest rates are above 7%.

It is also important to understand that not every mortgage will qualify for a modification. For instance, under the Home Affordable Mortgage Plan or HAMP, the loan amount cannot exceed $762,000 and the property must be owner occupied. But in some cases your lender may have alternative plans that can still accommodate these certain situations and your attorney can advise you on whether you qualify for one of these programs.

Additionally if a loan modification will not at all be possible and you are eventually faced with the decision of what to do in foreclosure, your foreclosure prevention attorney can also go through all the proceedings and notes that were sent out to you in regarding your missed payments and imminent foreclosure. By doing this, they (your attorney) can identify places where procedure hasn't been carried out correctly and help you if you don't feel you were notified correctly. If this is the case then they can appeal your foreclosure and even put a halt to the proceedings.

A foreclosure prevention lawyer will have the knowledge and experience that you may not have, it might seem like an easy option to represent yourself throughout any foreclosure procedure, but it's a subject in which the laws are forever changing, so it's important you get the very best advice from start to finish to ensure that any modifications that are made to your mortgage are for your benefit and will not lead you further into debt in the long run.

Remember, if you are faced with a possible foreclosure, don't throw in the towel, explore your options and consider having a mortgage modification that could make your life a lot easier on you and your family by relieving the stress and worry that comes with expensive monthly payments that you are just unable to pay.

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