The prospect of an upcoming foreclosure is enough to place strain on your emotional well-being and the financial security of your family. The unfortunate truth is that missing a single mortgage payment allows a lender to initiate foreclosure proceedings. Thankfully, most lenders are hesitant to do this. The costs and time involved with foreclosures are significant. Instead, they may be willing to enter into negotiations concerning your loan. In many cases, the creation of new loan terms can keep you in your home, make payment plans more manageable, and eliminate past debt.
At Daneri Diez, our real estate attorneys have over a decade of experience representing individuals in mortgage loan modifications. The loan modification process can be very intricate and complicated, which is why it is so important for a person to be represented by an experienced attorney throughout the process. Having an experienced Miami Shores loan modification lawyer on your side could mean the difference between successfully modifying your mortgage loan and potentially saving thousands or, instead, losing your house to foreclosure.
Banks and Lenders Attempting Foreclosure Must Follow Specific Procedures
Although it is true that a bank or lender may initiate a foreclosure case after a single missed payment, they must still follow strict procedures before any attempt to seize a home has a legal effect.
The receipt of an initial letter informing a homeowner of a bank’s intent to begin foreclosure is only the start of this process. After sending this letter, the bank must file an official lawsuit in a local courthouse. This complaint will give a homeowner a chance to respond. It can also serve as motivation to reach out to a lender about how to avoid foreclosure. In many instances, lenders will be willing to renegotiate a loan to keep a family in a home and continue receiving mortgage payments in the future. However, they need to follow a strict review process to confirm that the borrower can continue making the mortgage payments in the future. A Miami Shores loan modification attorney can provide more information about the foreclosure process and reach out to lenders on behalf of homeowners to see if loan modification is an option.
Working on Behalf of Homeowners to Renegotiate Loans
Loan modifications can be beneficial for everyone involved. Lenders are often reluctant to go through with formal foreclosure proceedings, especially if the value of the property is lower than the debt. Similarly, property owners want to save their homes and only seek to have more affordable payments. Even though lenders may be open to negotiating new terms for a loan, it is important to remember that loan modifications are not mandatory. Nevertheless, while it may appear that lenders have all the power in these situations, applying for a loan modification is a chance to obtain a new payment plan that works for borrowers. Common topics up for negotiation include:
- Reduction of monthly payments
- Reduction of interest rate
- Extension of the term of the loan
- Debt forgiveness
- Balloon payments
Refinancing is another option to save your home. When there is equity in the home, refinancing the loan can result in lesser payments that stretch over an increased period of time. However, these loans come with closing costs and additional fees for the borrower. Refinancing is obtaining a new loan on the property that will pay off the existing debt and will give you a new mortgage payment. If current loan rates are low, monthly payments can be significantly more affordable. A real estate lawyer in Miami Shores could represent your interests during these negotiations and create new mortgages that fit your budget.
Contact a Miami Shores Loan Modification Attorney Today
If you have received notice that a bank or lender intends to begin foreclosure proceedings, it is essential that you act quickly. A dedicated Miami Shores loan modification lawyer at Daneri Diez is here to help.
We work to understand your needs and budget to work towards the creation of a new loan that allows you to make payments on time and lessens the chance of falling behind on future payments. If you or someone you know is considering doing a mortgage loan modification or refinance, contact the experienced attorneys at Daneri Diez today for a free, no-obligation consultation.