' What Is a Mortgage Modification? - Law Offices of Robert M. Geller
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

How Do I Find a Bankruptcy Attorney in Clearwater?

If you're facing financial hardships and are considering bankruptcy in Clearwater, finding the right attorney can be a critical decision....
Read More

Should I Sell My Home to Get Out of Debt?

Debt is a common modern problem. Whether it's credit cards, student loans, or medical bills, debt can cripple even the...
Read More

What to Ask a Bankruptcy Lawyer

What should you ask a bankruptcy lawyer? Financial problems can be incredibly stressful. One option that many people turn to...
Read More

Is It Easy to File for Bankruptcy?

Bankruptcy is a legal process that allows individuals and businesses to eliminate or reorganize their debts. It offers relief to...
Read More

How to Stay Motivated to Pay Off Debt

If you are struggling with debt, you are not alone. The average American has tens of thousands of dollars in...
Read More

Can I Fire My Bankruptcy Attorney?

Filing for bankruptcy can be overwhelming. Your bankruptcy attorney plays a crucial role in navigating you through the process. Unfortunately,...
Read More

Am I Responsible for My Parent’s Credit Card Debt?

As we grow older, our parents also age. Sometimes they become dependent on us in many ways. Even if they...
Read More

How to Hide from Debt Collectors

There are many ways to “hide” from debt collectors. You can ignore their calls, not answer your door, or ask...
Read More

Is Your Spouse Responsible for Credit Card Debt in Florida?

Debt can be overwhelming, especially when you're not sure who is responsible for it. That's why it's important to understand...
Read More

What Happens If You Ignore a Debt Collector?

Debt can be overwhelming. It’s easy to let bills pile up and miss payments, and before you know it, you...
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

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