Falling behind on home mortgage payments can lead to dire consequences. Aside from past due notices, calls from the lenders and trying to catch up with payments to no avail, a homeowner runs the risk of foreclosure and losing their home. The majority of families rely on the comfort of homeownership, and facing the possibility of losing that home can be extremely stressful and heartbreaking. However, there are solutions and federal programs available to homeowners who are close to the possibility of foreclosure or within its bounds. In order to properly assess your particular situation, it is highly advised to seek the legal assistance of a loan modification attorney in Miami.
Federal Housing Administration (FHA) and Loss Mitigation
The government offers a number of federal programs that can aid a homeowner during a time of duress. Some of these federal programs are administered by the Federal Housing Administration or FHA. The FHA was created as part of the U.S. Department of Housing and Urban Development (HUD). The FHA offers mortgage insurance to approved lenders that meet certain requirements. In turn, lenders offer potential homebuyers or people who are interested in purchasing a home an FHA backed loan. An FHA loan allows home buyers the opportunity to qualify for a mortgage in cases where a traditional home mortgage is out of reach.
Homebuyers can qualify for an FHA loan with a lower credit score and a smaller down payment. First time home buyers or individuals who are between a low to moderate-income level may also qualify for an FHA loan. Once approved for an FHA loan, the borrower is required to pay a mortgage insurance premium as part of the program. The mortgage insurance assures that the lender is protected from losses against mortgage defaults. In other words, The FHA loan ensures that in case a borrower defaults on his or her loan, the lender is able to get paid on a specified amount.
It is not unusual for individuals to fall behind on mortgage payments. Loss of employment, medical issues, death, and other life-altering circumstances can cause severe financial hardship, and individuals are entitled to seek help before matters worsen. Regardless of whether a borrower has a traditional or FHA home loan, it is imperative to consult with a Miami loan modification attorney right away to discuss available options.
If an FHA loan borrower defaults on their loan or is facing foreclosure, their lender or servicer is subject to evaluate the borrower’s circumstance and determine appropriate actions for loss mitigation. The servicer will work through loss mitigation options with the borrower in order to help them avoid foreclosure.
The servicer will determine whether the borrower qualifies for a forbearance, repayment plan, loan modification, partial claim, short sale, or a deed in lieu of foreclosure. Working with an experienced loan modification attorney in Miami is recommended. A loan modification attorney in Miami can help determine the best federal programs and options that can help you with matters dealing with foreclosure regardless of whether you have an FHA loan, conventional, or traditional loan.
Individuals who do not have an FHA loan also have loss mitigation options to help them if they are facing foreclosure or have fallen behind on mortgage payments. If you are in default of your mortgage payments or facing foreclosure, it is vital to consult with a Miami loan modification attorney in Miami as soon as possible to discuss your loss mitigation options. At the Law Offices of Daryl L. Jones, P.A, we have years of experience helping clients with federal programs and loss mitigation solutions.
Loss mitigation is beneficial to both the lender and borrower. It is more costly for the lender to process a foreclosure than it is to help mitigate issues with repayment and the borrower. Under some loss mitigations options, the borrower is able to keep his or her home. A loan modification, forbearance agreement, or repayment plan are three options that allow a borrower to keep their home. If the options previously mentioned are not feasible, a short sale or deed in lieu of foreclosure are two alternative options that can help a borrower give up or sell the home without going through a foreclosure.
When a borrower has entered the delinquent loan state, a servicer will make contact and begin working towards a solution. At the point, the servicer will communicate all options available to the borrower. For instance, the servicer will provide information on all available loss mitigation programs and federal programs. The servicer will also instruct on how to submit an application for loss mitigation. It is important to seek a loan modification attorney in Miami to help you with federal programs and loss mitigation programs.
If your servicer determines that loss mitigation is an appropriate measure to solve your circumstance, they will send you a loss mitigation package. The loss mitigation package will include everything needed to complete the loss mitigation process. Completing the loss mitigation process can be overwhelming, but you do not have to handle it alone. You can turn to a loan modification attorney in Miami for legal guidance.
Submitting a complete and accurate loss mitigation package can delay a foreclosure. Under the law, you have rights, and foreclosure cannot commence if you send a completed package before the start of foreclosure. The lender cannot continue the process of foreclosure unless you are not eligible for any loss mitigation options, you fail to comply with the loss mitigation terms, or if you reject all the offers available through loss mitigation. To better understand the process, a loan modification attorney in Miami can clarify the complexities of the loss mitigation process.
A knowledgeable Miami loan modification attorney can help explain the best available options in regard to federal programs. The availability of federal programs to reduce loss mitigation is continuously changing. Some programs expire within a few years while others are more long-term. The majority of federal programs require certain eligibility requirements, paperwork, proof of income, proof of hardship, and other criteria that need to be accurately completed to ensure approval. An experienced Miami loan modification attorney will make sure that you have all the documents and paperwork completed correctly and ready to submit. It is wise to talk to an expert loan modification attorney in Miami who knows which federal programs are current and beneficial to your unique circumstance.