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

5 Common Budgeting Mistakes Newlyweds Make and How to Avoid Them

Budgeting mistakes are common, especially when you’re young. Not all newlyweds are young adults, but many first-time marriages do involve...
Read More

When Should Married Couples File for Bankruptcy Together?

There's no easy answer to the question of timing when it comes to bankruptcy. In some cases, it may make...
Read More

Can Your Spouses Debt Force You Into Bankruptcy?

If you're married and your spouse has a lot of debt, you may be wondering if that debt can force...
Read More

Do You Need a Bankruptcy Attorney If You’re Divorcing with Financial Problems?

Divorce and bankruptcies are more common than many people realize. Financial problems make a stressful transition even more difficult. If...
Read More

Can You File Bankruptcy without Your Spouse?

Filing for bankruptcy is a decision that should not be taken lightly. It can affect your financial life and the...
Read More

How Seniors Can Avoid Bankruptcy

Seniors are at a high risk of bankruptcy, but there are ways to avoid it. What do you need to...
Read More

What Happens If I Own Too Many Assets to File for Chapter 7?

Does hiding assets in bankruptcy protect them from your creditors? If you own too many assets to qualify for Chapter...
Read More

How to Find the Best Lawyer for Filing for Bankruptcy after Retirement

Many retirees decide to file for bankruptcy as a way to get a fresh start. But finding the right lawyer...
Read More

Does Declaring Bankruptcy Affect My Retirement Savings?

When you're struggling with debt, the thought of bankruptcy might cross your mind. But what would that mean for your...
Read More

Is a Reverse Mortgage Right for Me?

Reverse mortgages in Florida are loans that allow homeowners 62 and older to borrow against the equity in their homes....
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

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