CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

What is Mortgage Modification?

Mortgage modification changes your original mortgage agreement. It is typically done to help make the mortgage repayment process easier for homeowners. Modification lowers monthly mortgage payments and can prevent default if you are struggling financially. Banks offer or grant loan modification requests because it is in their best interest to help you repay your loan.

Homeowners who are no longer able to afford their mortgages are sometimes offered mortgage modification from their current lender, another lender, or through a government program. Lenders offer loan modification to prevent the need for foreclosure or other attempts at collection. If you are unable to make your mortgage payments, the bank can foreclose, attempt to collect through wage garnishment, accept the loss, or wait until you declare bankruptcy and receive a portion of the original loan.

None of these options is ideal for the lender, so they offer the option of modification to adjust the terms of the loan. The change in interest rate reduces the homeowner’s monthly mortgage payments to an affordable amount, but since the terms of the loan are changed, the bank does not lose money in the long run. As a matter of fact, a lender might end up making more on your loan because of modification.

Beware Refinancing and Modification Offers

Keep in mind generic offers to modify your loan (often mailed to homeowners and marketed as a refi or refinancing offer) might be a gimmick. Even if an offer comes directly from your current lender claiming you qualify for modification, you can still be denied, even if you are in good standing on your mortgage. This is why it is helpful to work with a professional who understand the modification process.

Requesting a Mortgage Modification

If changes in your life have occurred since you purchased your home and you are no longer able to afford your mortgage payments, but your lender has not yet offered a modification, you can request one. Contact your lender and explain your financial situation. Criteria for approving a modification request vary from lender to lender, so it is important to get detailed information about your situation and determine whether or not a modification is beneficial.

Before committing to a mortgage modification, make sure you understand the terms of the new arrangement. Modifications can be temporary or permanent. If your goal is to reduce your monthly mortgage payments, you might end up paying more in interest in the long run, but the adjustment can prevent foreclosure or free up cash to help with other debts.

It is a good idea to work with an attorney who understand the modification process and can help you determine your best course of action. Modification might also be available if you are in the process of filing bankruptcy. If you have filed for bankruptcy and you are interested in mortgage modification, speak with your bankruptcy attorney.

If you are concerned you are headed toward foreclosure or you have questions about mortgage modification, contact the Law Offices of Robert M. Geller at 813.254.5696

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Here’s How You Can Rebuild Your Credit

How do you repair this damage and rebuild your credit after filing for bankruptcy? Many people believe that filing for...
Read More

How Can You Practice Smart Credit Card Management after Bankruptcy?

How can you learn better credit card management after bankruptcy? Using credit after bankruptcy is an intimidating experience for many...
Read More

How Do You Improve Your Credit Score?

How do you improve your credit score? Here's what you need to know. Your credit score plays an important role...
Read More

Does Bankruptcy Credit Counseling Work?

Bankruptcy credit counseling helps you emerge from bankruptcy understanding credit management. People filing for bankruptcy must take two courses regarding...
Read More

5 Things That Boost Your Credit Score

Your credit score has a major impact on your financial life. You can be a great person with a bad...
Read More

How to Correct Errors on Your Credit Report after Bankruptcy

How do you deal with errors on your credit report after bankruptcy? In a perfect world, you could ignore your...
Read More

Tips for Rebuilding Your Credit after Bankruptcy

One of the primary goals after filing for bankruptcy is rebuilding your credit. As tempting as it might be to...
Read More

I’m Starting a New Life and I want a Financial Fresh Start – Should I File for Bankruptcy Now or Wait?

As the say goes, “when it rains it pours.” If you’ve found yourself experiencing financial difficulties while also dealing with...
Read More

What Does It Mean to Get a “Financial Fresh Start” in Bankruptcy?

Financial Fresh Start You’ve probably heard it before. “Bankruptcy gives you a financial fresh start.” It’s something stated on this...
Read More

Tips for Overcoming the Negative Emotions of Bankruptcy: How Can an Attorney Help Me with My Finances?

As advantageous as bankruptcy is when you are struggling financially, it’s still a stressful experience. Some people have a tough...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

NACBA Logo avvo1 avvo2 avvo3 LEA BBB Logo RG Seal

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions