West Palm Beach, Palm Beach County Loan Modification

Christian N. Scholin, Attorney at Law, helps clients understand how loan modification may help them protect their real estate assets from foreclosure.

Understanding Loan Modification

Contacting your mortgage holder as soon as you miss a payment or anticipate difficulty meeting your loan obligation often allows you to work out new terms in which the loan can be repaid and you can retain your property. Typically, once two to four payments have been missed, the loan is in default and loan servicers are less willing to work with borrowers on alternative payment plans. Lenders in West Palm Beach and Palm Beach County want to work with borrowers to avoid foreclosure. The earlier you contact the lender, the more options for which you may be qualified.

Short-term Alternatives to Loan Modification

• Repayment plan - If you have only missed a few payments, an option may be to divide the past due amount and add it to your regular mortgage payments going forward.
• Mortgage reinstatement - If you can establish that the difficulties meeting your mortgage obligation are temporary, it may be possible to pay the lender the entire amount of the missed payments (plus late fees and penalties incurred) by a mutually agreed upon date and to continue under the original terms of the loan.
• Repayment plan - If you have only missed a few payments, another option may be to divide the past due amount and add smaller amounts to your regular mortgage payments going forward.
• Special forbearance - When a borrower's income is reduced temporarily, through job loss or employment medical leave, a lender can reduce or suspend mortgage payments. When the period of forbearance expires, the borrower resumes regular payments with additional partial payments or a one-time lump sum payment to cover the gap.

Loan Modification

Loan modification may be the preferred course of action if the negative change in the borrower's financial circumstances appear to be long term. For many borrowers, a permanent change of loan terms is the only way to retain property and prevent foreclosure. In a loan modification, borrower and lender agree to make permanent changes to one or more of the loan terms, resulting in more manageable payments for the borrower. An experienced debt relief attorney can represent you in the process of restructuring your mortgage loan permanently.

Loan modification may entail:

• Lowering the interest rate
• Extending the term of the mortgage
• Adding missed payments to balance

To find out whether you are qualified for loan modification or other payment restructuring, contact Christian N. Scholin today at 561-459-2587, or use our web form.