| Mortgage Modification Services |
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You and your servicer would enter into a loan modification agreement that changes the terms of the loan. This option allows you to keep the property at the terms and conditions that have been set forth in the modified mortgage. It is as if a new mortgage was taken out without the cost of refinancing the property.
If a bankruptcy is planned at some point, we generally recommend doing a modification prior to the filing of a bankruptcy. The reason for this is if in the future you want to walk away from the property, a modification done prior to the bankruptcy will wipe out the liability on the modified mortgage as well as any potential deficiency if the value of the property does not go up. |
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| We recommend that you try doing the modification of mortgage on your own, if not, let the Law Offices of Manny Singh do it for you. |
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| There are several key points to a modification. The first is persistency. Call them periodically; however do not become a pest. The second is to provide them the required information promptly. The third is to know the different programs and their rules. The fourth and main point is that you must have enough income to be able to qualify for their modified amount. |
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| As far as a mortgage modification is concerned, we try to achieve the following: |
- Reduce the principal
- Reduce the interest rate
- Negotiate the arrears to a lower amount
- Try to get the mortgage company to pay the property taxes (if any are due).
- Set up an escrow if there is no escrow already set up on your account.
- Modify the mortgage from a variable to a fixed interest rate.
- Extend the term of the loan up to 40 years.
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The principal is the hardest to reduce.
Some of the ways we have been able to get a principal reduction are as follows: |
- If the mortgage company agrees.
- If a forensic examination of the closing file reveals irregularities.
- If there is a short sale.
- If the loan falls into a special category for which the attorney general of the U.S. or the State of Florida has made a deal with a particular mortgage company to reduce the principal.
- If it is a non-homestead we can cram it down in a bankruptcy.
- If the property was over-appraised.
- If there is fraud in the inducement when the loan was processed.
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