Mortgage Alteration in Florida

Though issues stemming from the housing and financial crises are rampant throughout the United States, Florida remains one of the most affected areas for home repossession and bank foreclosure. Nearly half the homeowners in South Florida alone are facing foreclosure issues or are upside-down on their homes. What being upside-down on a home loan or mortgage means is that the total borrowed amount on the property exceeds that of the homes actual fair market worth. Are you one of the many Florida homeowners facing financial blockades when attempting to save your home? A mortgage alteration in Florida can be the answer you are seeking. 

How Mortgage Modification Works

A mortgage alteration or modification is a method where the homeowner negotiates with a lender to make changes to the terms of a home loan. This situation involves a mutually beneficial outcome for both parties. Mortgage modifications can involve changing rates in order to make the loan more affordable or manageable by homeowners. Loans can even be adapted from an unpredictable variable rate to a more stable fixed rate. This alleviates the uncertainty of not knowing how high or low your payments may be.

Mortgage modification programs offer a variety of loan solutions. When stuck in a seemingly inescapable financial conundrum like an impending foreclosure, it can be a vital step in the recovery process to discuss your options with your lender. You may even be able to get them to extend and modify the term, and the total balance of the loan. Though these types of outcomes are relatively uncommon, with the current state of financial markets, mortgage lending institutions are far more lenient in trying to help debtors and finding a beneficial resolution for both parties.

Attempt to Modify My Mortgage, Or Short Sale My Home

There is a multitude of reasons when facing financial issues in regards to your property, to attempt to modify your mortgage. Many advisors even recommend this method as it offers salvation from financial purgatory. While this can provide a positive outcome, in the end, mortgage modification is not always the most beneficial method of escaping your financial issues.

When facing a foreclosure, timing is paramount. There often isn’t much time to act with banks and financial institutions closing in on your home. Accompanied by large amounts of bureaucratic red tape and other hoops to jump through, negotiations offer no guarantee of the outcome you’re searching for. While some lenders can be very receptive to the ideas of adapting your mortgage terms to a more manageable option, this is not always the case, and you can spend months of time attempting to haggle for a beneficial outcome, only to have the bank reject any and all recourses.

Luckily mortgage refinance isn’t the only option available in attempting to get out of an unfortunate real estate situation like a foreclosure. If your home’s value has dramatically decreased to an amount far below what is owed on the total debt, then a short sale might be the best option available in the resolution of your situation.

What is a Short Sale?

A short sale is a process where your home is purchased for a sum that falls short of the total balance owed on the mortgage. The seller, buyer, as well as the lending institution all agree to these terms. In this situation, the latter accepts a deficit amount versus what you actually owe.

If you’re asking “Well, what’s the better option, short sales, or mortgage modification?” the answer is dependent on your unique and individual situation. Obviously, if you’re intending to keep your home, a short sale is probably not in your best interests. However, when considering solutions with minimal damage to your credit, a short sale is a great option to consider. Short sales include an escape from foreclosure issues

Both of these processes are relatively complex, convoluted, and not necessarily suitable to all situations and circumstances. The best thing to do is to consider your own circumstances, analyze the problems, and use that information to find the best possible resolution.

Your Florida House Buyers

For more information on mortgage alteration in Florida, you can contact Your Florida House Buyers. Our company is a team of independent real estate investors that buy and sell homes all over South Florida. We have experience helping homeowners in difficult financial situations like foreclosure and other mortgage issues. To find out how the Your Florida House Buyers team can help you, contact us today!

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