Facing a foreclosure on your home is nothing that anyone ever wants to go through. Fortunately for Florida residents, keeping your home despite the foreclosure might be possible. Florida was one of the first states to mandate mortgage modification mediation. This program can prove useful for some homeowners who need to hang on to their primary residence.
Loan modifications are permanent changes that allow the mortgage to be reinstated. In most cases, the loan modification allows the payment terms to be altered in a way that makes the payments more affordable for the homeowner. Homeowners can only have one loan modification every 24 months.
The loan modification can include the fees related to the foreclosure, such as legal fees. This can mean that the homeowner pays more overall for the mortgage, but many homeowners are willing to do that just to stay in their home while making affordable payments. Late fees, however, are expected to be waived as part of the loan modification proceedings. The loan must also be re-amortized so the loan term is 360 months from the date the first installment is due.
A homeowner who is seeking a loan modification might have to have an interior inspection of the home. This is to ensure that the property is suitable for the mortgage that occurs with the modification.
Mortgage modifications have very specific conditions that must be met. This includes a trial payment plan. Anyone who is considering seeking a mortgage modification in Florida should endeavor to understand all aspects of the program prior to moving forward; however, fast action is vital to ensure that the modification is completed prior to the end of the foreclosure process.
Source: U.S. Department of Housing and Urban Development, “Loan Modification Frequently Asked Questions” Dec. 07, 2014