Over the past few years in our foreclosure defense and bankruptcy practice, we’ve learned a little bit about mortgage modification in Florida and here are some tips and tricks of which homeowners should be aware:
Call your mortgage servicer and ask about their HAMP program and participation. Any bank who accepted TARP bailout funds back in 2008, or who has signed a servicing agreement are required to consider any potentially qualifying borrower for HAMP. HAMP modifications often provide for interest rates of as little as 2% and are usually more beneficial than in house mods.
Under a HAMP mod, you don’t have to miss a mortgage payment to qualify. You can simply submit an affidavit of impending hardship. Use the words “imminent default”. This avoids the lender telling you that you have to be three months deliquent for them to consider a mod, and then changing the story when you call again in three months by now requiring you to be current to modify your loan.
Ask about the Principal Reduction Alternative (PRA) if you are upside down in your mortgage.
Ask about the Hardest Hit Funds (HHF) available in the states hardest hit by the recession.
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