Many of our South Florida readers have probably seen previous posts here that refer to mortgage loan modifications as a potential option for homeowners who may be facing a foreclosure action. Of course, for a homeowner who is struggling to make the monthly mortgage payment, any option is likely to be explored. But, for those who are interested in the possibility of a mortgage loan modification, at our law firm we attempt to explain the circumstances in which this option could become a reality.
For starters, a borrower must have a legitimate reason to request a mortgage loan modification from a lender. The most legitimate reason? A significant change in the borrower’s financial circumstances – demonstrating to the lender that the borrower is now facing financial hardship.
Now, demonstrating financial hardship may not be as easy as some of our South Florida readers may think. The fact is that the majority of Americans probably face financial hardships every day. Let’s face it, stagnant wages and economic growth isn’t doing anyone any favors, financially speaking. However, the hardship that must be demonstrated in order to have a possibility of securing a mortgage loan modification usually comes in one of two forms: a decrease in income, or an increase in expenses.
Whatever the reason, the hardship must be so significant that the borrower can make the case to the lender that the ability to continue to make the monthly mortgage payment as it is set is no longer present. At our law firm, we do our best to help clients who are trying to make their case to lenders that a modification of the present loan terms is an option to consider. For more information, please visit the loan modification section of our law firm’s website.