Loan Modification

There can be many reasons people fall behind on their mortgage. Most people think it is all the borrowers' fault. But that is not always the case. 

Some banks and lenders have made loans based on inflated appraisals or artificially high market values. Some loans are made with deceptive interest rates. And sometimes, banks and servicers force-place insurance when it's not needed or undertake other improper acts that cause a "default."

Regardless, most people who contact our office want to keep their homes.  And if that's the case for you, a loan modification is often the best way to do it. But the process can be tedious, and tricky. Like much else in law, there is generally one way to do it right, and a million ways to screw it up. Loan modifications are no different.

In some instances, the best way to effectuate a loan modification is by creating leverage. Exposing evidence of fraud, false documents, “robo-signing,” servicing errors, misapplication of payments, evidentiary violations, discovery violations, illegal collection practices and more, can help. In order to increase your chances of obtaining a meaningful loan modification, you need an experienced lawyer on your side and the Law Offices of Evan M. Rosen, based in Fort Lauderdale and Hollywood, is here to help. We are dedicated to serving our clients and we will diligently represent you to help you to achieve the best possible modification, should that be your goal.

You are welcome to read more about loan modifications below or you can contact us now for a consultation by calling 754-400-5150 or by filling out our online form.

Loan modification is a change made to the terms of the existing mortgage on your home. It is different from refinancing. That's when you obtain a new loan to pay off your old loan. Modification is possible when refinancing is not available because of poor credit or because you are "underwater," owing more than the home is worth.

In many cases, a loan modification involves a change to the repayment terms on your loan, but it may or may not include a change in the balance owed. For instance, your interest rate could be reduced or the length of the loan could be extended. You may even have some portion of the balance owed on your loan deferred. That means a portion of the amount due does not accrue interest and is only due when you sell, refinance, or when the loan matures. In some cases, we have helped clients obtain principal reductions—permanently lowering the total amount owed.

Although certain government loan modification programs were created with the stated goal of helping struggling homeowners, they do not help everyone. One of the overriding concerns is that the servicer may just be fishing for information to see if they could be successful in obtaining a money judgment against you, in the event the property is underwater. If there is equity, this process could be used by the servicer to drain equity out of the property (and out of your pocket). Without a judgment being entered, your financial information is completely irrelevant in a foreclosure action; just as the millions of dollars the servicers and banks make is irrelevant. If you have something worth going after, by opening up your books at this stage, you are divulging damaging and sensitive financial information. It may also hurt your bargaining strength and your case. But in most instances, if you want to keep your home and can afford a reasonable monthly payment and are not sitting on significant cash and assets, it typically makes sense to apply for a modification to see what the servicer/bank is willing to propose.

We have helped many clients obtain loan modifications. At one point, we would not recommend these for a number of reasons, but things have changed. The odds of winning at trial are not what they once used to be and banks are much more willing to work with us than they used to be. We'd like to think our track record (winning the majority of our cases at trial) has helped motivate banks to work with our clients. So, if you want to keep your home and put the litigation behind you, the best course of action often includes trying to work out a loan modification.

At the Law Offices of Evan M. Rosen, we will fight vigorously for you to help you in any legal and ethical way possible. This includes trying to obtain a loan modification, with favorable terms, if this is what's best for you.

We listen to our clients and do all we can to help them achieve their goals. We focus on treating our clients as we would want to be treated and treating their cases as if they were our own. Contact our Fort Lauderdale and Hollywood loan modification lawyers today at 754-400-5150 or through our online form to schedule a consultation to learn more.

Let the Law Offices of Evan M. Rosen serve you!