Many homeowners have fallen behind on their mortgage and could soon be on the path to foreclosure without permanent help. If this sounds like your situation, you may be eligible to modify your mortgage.
If you are struggling to pay your mortgage and are afraid you may soon be facing foreclosure, there are options available to you. A mortgage loan modification may help you bring your mortgage up-to-date and avoid foreclosure. However, a mortgage modification is a complicated process which is why you need to speak to a qualified modification lawyer before reaching out to your mortgage company.
Saedi Law Group employs a full service Loss Mitigation Department to help Georgia consumers modify their mortgage loans.
The department includes a team of loss mitigation specialists, real estate specialists, and loan modification attorneys. Our team has handled hundreds of Loan Modification and Foreclosure Prevention cases and will work with you to receive the results you want.
Like most issues that arise today, you are more than able to attempt to handle your loan modification yourself. You are not required to have an attorney to modify your loan however many consumers feel mortgage comfortable retaining a law firm to not only process their modification directly with the lender but to also review the terms of the proposed modification.
A loan modification obligates you to pay a large amount of money, secured by your home. It is critical that you understand all of the terms of the contract.
It is almost always worth the relatively small expense of having an experienced lawyer do a review of your documents before you sign. You will want to make sure you understand the deal you are making, and make sure you can make the payments, since your chances of getting another modification after a default are far less likely.
Unlike the mortgage crisis in 2009 and the loan modification mess that followed, today’s loan modifications can be processed quickly and efficiently. Our firm works with lenders directly on their private loan modification portals to process your modification and ensure that nothing falls through the cracks. Once a modification is approved our team will review terms with you to ensure that you understand the new mortgage loan you are entering into.
If you’re looking for ways to stop foreclosure immediately, it’s important to act fast. The Consumer Financial Protection Bureau stipulates that lenders put a pause on the foreclosure process while your loan modification application is pending, but it doesn’t always happen the way it should, particularly when you’re dealing with your lender on your own and don’t have an attorney involved in the process.
If you have started the loan modification process early then you may be able to modify your loan before a foreclosure occurs.
The good news is that even if you are too late to modify your loan BEFORE the foreclosure you can still file a Chapter 13 bankruptcy to immediately stop the foreclosure process, then apply for a loan modification.
We have many current Chapter 13 clients that modify their loans while in their bankruptcy case.
A forbearance plan is an agreement that allows homeowners experiencing a temporary hardship to make a reduced mortgage payment (or no mortgage payment at all) during the plan’s term and is aimed at helping homeowners get their financial footing.
Hardships related to COVID-19 are causing millions of Americans to look at a forbearance plan as a way to stay in their homes and avoid foreclosure.
If you receive a forbearance plan, you will eventually have to repay any amounts that were not paid during the plan. Right now, many homeowners are confused about how they’ll be required to pay back the amounts not paid while on a forbearance plan.
There are several options for dealing with these missed payments during the forbearance period:
A reinstatement means that you pay the total forbearance amount all at once.
A allows you to bring your mortgage current over a period of time (up to 12 months). A repayment plan is an agreement that provides you with an opportunity to repay the forbearance amount on your mortgage by making additional monthly payments along with your regular monthly mortgage payments.
A COVID-19 payment deferral allows you to bring your mortgage current by delaying repayment of forbearance amounts without changing other terms of your mortgage. This option may be available if you cannot afford a reinstatement or repayment plan. You will not be charged interest on the forbearance amounts, which will be due and payable at the maturity of the mortgage loan or earlier whenever you sell or transfer of the property, refinance the mortgage loan, or pay off the interest-bearing unpaid principal balance.
A loan modification will permanently changes the terms of your original loan. It is intended to make your payments or terms more manageable, and typically results in a lower monthly payment.
If you have resolved or are in the process of resolving your forbearance plan, you may be eligible to refinance your loan.
Don’t wait until the last minute to deal with your past due payments in forbearance.
Temporary Measures to Limit Foreclosures.
Although the approach being taken across the country is not uniform, a federally-imposed moratorium on evictions and foreclosures was announced in March by the Department of Housing and Urban Development (HUD). HUD said it would suspend evictions for 60 days to the end of April.
The Federal Housing Finance Agency announced that Fannie Mae and Freddie Mac (the entities that buy most home loans) also announced in March that it would be suspending evictions and foreclosures for a minimum of 60 days.
These suspensions, it must be stressed, are being taken at the federal, not the state, level. Each state in the nation is handling this in its own way.
And they are temporary.
The eviction suspensions are all generally tied to the shelter-in-place and stay-at-home orders. Once those orders are lifted, the foreclosure moratoriums will disappear and homeowners will be required to resume their mortgage payments.
It is important, therefore, that you consult with counsel in your state to stay abreast of all changes and for more information.
Georgia and Foreclosures.
On March 20, 2020, the Magistrate Court and Fulton County Marshal announced the suspension of eviction hearings for the duration of the limited Judicial Emergency, declared by the Georgia Supreme Court (through to April 14, 2020). Unless extended, foreclosure hearings will be suspended to April 14, 2020.
Again, be aware that these measures are temporary and they not consistent across the state. Not all 159 counties in Georgia have suspension measures in place. So if you are facing foreclosure, please contact a bankruptcy attorney to discuss options to protect your property.
We invite you to contact us either online or by phone at 404-919-7296 to schedule a free confidential consultation to review your personal financial situation and what options we can provide to protect you from creditors. For additional information about bankruptcy please also check out our YouTube Channel which has up to date vlogs on issues related to personal bankruptcy.
