Protecting Your Home And Your Financial Future
At the Law Office of Kimberly A. Abrams & Associates, P.A., we are sympathetic to the hardships our clients face in these difficult financial times. We have dedicated much of our practice to advocating for South Florida residents who face the very real prospect of losing their property.
Whether you are trying to prevent a foreclosure or are trying to restructure your loan agreement, our legal professionals can represent your interests and negotiate on your behalf with your current lender or mortgage holder. We are qualified to help you pursue loan modifications, short sales and deeds in lieu of foreclosure.
Uncertain of your options? Please read the information below to learn more about legal solutions that may be available to you.
If you cannot meet your financial obligations, you may qualify for a loan modification. Lenders study a variety of factors before they approve a temporary or permanent loan modification. These factors include:
- The terms of the existing loan
- The borrower’s current financial circumstances
The crux of any loan modification is a change in circumstance otherwise known as a “hardship.” In order to qualify for a loan modification, a borrower must demonstrate that:
- There has been some change in circumstance or hardship that has occurred that makes it impossible for the borrower to meet his/her financial obligations
- Increased expenses or decreased income led to this change in circumstance or hardship
Either way, the borrower must demonstrate to the lender that he/she can no longer afford to pay his/her mortgage payment at the current amount.
If you owe more to your mortgage lender than your property is currently worth, you may qualify to sell your property in a short sale. When lenders approve a short sale, they allow the owners to sell “underwater” property at market value, which may not allow the owner to recoup the original cost of the property. After the short sale closes, the lender receives all the sales proceeds after closing costs and other fees are paid.
Each lender has requirements for approving this type of sale. Factors lenders may consider include:
- The market value of the property
- The costs of foreclosing
- The carrying costs if the lender forecloses
- The degree of financial hardship the borrower faces
- The inability of the borrower to pay the deficiency at closing
Deed In Lieu Of Foreclosure
If you have fallen behind on your mortgage payments, giving your lender the deed to your property may allow you to avoid the foreclosure process. Lenders may agree to accept property titles from borrowers who are not able to meet their financial obligations. Not all borrowers qualify for this option, however. Lenders may prefer to foreclose on the property rather than take the borrower’s deed when:
- Terms in the mortgage prohibit deed in lieu of foreclosure
- There are additional mortgages attached to the primary mortgage, which may include home equity loans or lines of credit
- There are judgments liens on the mortgage
Get A Skilled Ally In Your Corner
Let us find solutions for your difficult legal matters. If you have questions about loan modifications, short sales, deeds in lieu of foreclosure or foreclosure defense, contact our Fort Lauderdale office over the phone at 954-985-9715 or via our contact form. Arrange your consultation today and take the first step toward addressing your concerns.