Florida Loan Forbearance Attorney
Dedicated Loan Forbearance Lawyers Helping Homeowners Prevent Foreclosure & Temporarily Suspend Their Mortgage Payments
The coronavirus pandemic has presented everyone with new daily and long-term challenges. While the virus is a threat, the pandemic has also resulted in innumerable social and financial difficulties.
Countless people have lost jobs, experienced drops in pay, and accumulated new expenses. Medical bills, missed mortgage payments, and other miscellaneous costs all result in debt.
Many homeowners struggle to make their monthly mortgage payments. The additional financial burdens brought on by the COVID-19 pandemic have made it impossible for some households to keep up.
If you have been facing mounting financial difficulties, you are not alone. According to the Mortgage Bankers Association, 2 million homeowners are in forbearance plans as of June 2021. You may wonder about the possibility of debt relief.
Speaking to an accomplished Florida mortgage loan forbearance attorney can help you to understand your options.
Seeking mortgage forbearance can seem overwhelming. The accomplished attorneys at our Foreclosure Defense Law Firm can help.
Our team boasts decades of experience helping clients find debt relief options. Do not bear the burdens of your mounting debt alone. Contact our Foreclosure Defense Law Firm for a legal consultation to discuss the best course of action for you.
How Does The CARES Act Affect Mortgage Forbearance?
The United States Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act on March 27th, 2020. Beyond help for unemployment and student loans, the CARES Act provides mortgage forbearance.
A “forbearance” is an impermanent pause on recurring payments toward a loan. Mortgage forbearance means that the borrower does not have to pay on their home loan until the pause expires.
Many households have suffered massive financial difficulties during the pandemic. If this describes you, the CARES Act may provide you with the option of mortgage forbearance.
The forbearance provided by the CARES Act can last up to one year. But homeowners must apply for relief in six-month increments.
To secure mortgage forbearance, you will need to apply through your mortgage servicer. Your mortgage servicer is the organization that accepts your monthly home loan payments.
To apply, you must detail the financial hardships that you are facing. Lenders want to verify that forbearance is necessary in your case. These difficulties may be a direct result of the pandemic or an indirect result of its economic effects.
It is important to note that you do not have to contract COVID-19 to be eligible for this forbearance option. Contacting a skilled mortgage loan forbearance attorney is the surest way to discover all of your debt relief options.
At our Foreclosure Defense Law Firm, we believe that everyone deserves legal representation. Contact us to speak with a knowledgeable forbearance specialist.
What About Future Mortgage Payments and Fees?
Mortgage forbearance is not the same as loan forgiveness. Forbearance only allows you to postpone your mortgage payments. You will still be required to pay back your loan.
When you secure mortgage forbearance with the help of an attorney, you will be given additional time to make payments. This type of delay can help you to deal with the financial difficulties that you face.
Many borrowers worry about the possibility of fees from mortgage forbearance. Fortunately, there are no extra penalties or fees for seeking or acquiring mortgage forbearance.
This option does not only postpone the payments that you currently owe. Additionally, forbearance pauses the accruing interest on the loan. When you resume your regular payments, you will not be charged additional interest.
This is an excellent option for many homeowners. When the mortgage forbearance expires, you do not owe the entire lump sum at once.
At the end of the forbearance period, you will simply resume your normal payment schedule. Suppose your mortgage costs $2,000 per month and you receive a six-month forbearance. In this case, you will not owe $12,000 all at once when the six months are over.
There are many potential advantages to mortgage forbearance. If you are facing financial difficulties in the state of Florida, speak with an accomplished loan forbearance lawyer. Reach out to an experienced Foreclosure Defense attorney today.
What Are My Options After Mortgage Forbearance?
Once your mortgage forbearance ends, you will be expected to resume your normal mortgage payments. It is important to contact your mortgage servicer to decide the best way to pay off the postponed charges.
If the institution that is servicing your mortgage is uncooperative, speak with a loan forbearance lawyer immediately. A legal professional can work on your behalf to arrange the best repayment approach for you.
Some of the most common loan arrangements include the following:
This type of arrangement further postpones your mortgage payment requirements. With a deferral, your loan is due at the time that you refinance or sell your home.
Securing a deferral means that the money will not be due in the near future.
Under a standard repayment plan, the money that you owe from mortgage forbearance is paid incrementally. Rather than paying back a lump sum, you will repay your lender gradually over time.
Following mortgage forbearance, many homeowners seek mortgage modifications. If you are still having difficulty making payments, a loan modification may be the best option. A loan modification attorney can work to secure changes to your loan agreement.
There are many different types of modifications that can be made to mortgage loan agreements. Some examples include:
- Forgiving past-due fees
- Shifting the loan timeline
- Decreasing the interest rate on the loan
- Changing interest from an adjustable to a fixed rate
- Forgiving some portion of the balance
- Lowering required monthly payments
- And more
Mortgage modifications may cause the borrower to hold the loan for a longer period of time. However, a loan modification attorney can help you get the best terms possible in your case.
Speak with a qualified legal professional if you have questions about mortgage modifications.
Is Bankruptcy an Option?
Some loan holders consider the possibility of bankruptcy following mortgage forbearance. Homeowners sometimes feel that their financial hardships have become unmanageable.
When this happens, bankruptcy can be an option. Mortgage modification may not be enough in these instances.
Additionally, some mortgage holders are not eligible for mortgage forbearance through the CARES Act for various reasons.
It is important to note that bankruptcy is a serious financial decision. Bankruptcy brings long-term effects to your financial history and credit score.
Still, some homeowners find bankruptcy to be their best financial option. For example, Chapter 13 bankruptcy allows borrowers to create a repayment plan that extends for three to five years.
Speaking with a legal professional will give you the information you need to make the best choice for you.
Schedule A Free Consultation With An Experienced Florida Loan Forbearance Attorney Today
If you are facing financial difficulty that is affecting your ability to make your mortgage payments, do not hesitate. Contact the accomplished legal team at our Foreclosure Defense Law Firm.
Our attorneys boast more than 50 years of combined legal experience. We believe that all borrowers deserve the best legal representation.
If you feel overwhelmed by your mortgage debt, you have options. Our lawyers have the skills and specialized knowledge to negotiate effectively on your behalf.
We know how to create leverage for negotiating with uncooperative banks and lenders. Our trusted mortgage loan forbearance attorneys will ensure that your rights as a borrower are protected.