Eric A. Lanigan Foreclosures Law Blog on Lawyers.com

A Mortgage Workout Could Save Your Home

Tuesday, May 1, 2012 by Eric A. Lanigan

Don’t stick your head in the sand because you’re behind on your mortgage payments, or about to pay late for the first time. There are several options for Central Florida residents to resolve the monthly payment problems you’re having for home, for business or both mortgages that you may owe.

Before letting things slide further behind consult with Orlando area attorneys Roddy Lanigan and Eric Lanigan who may be able to provide options to save your home, refinance your existing mortgage, stop or prevent a foreclosure or determine next steps in your financial challenges.

No economic situation is the same and never become so desperate that you’re quitting before you know what can be done to save your home or business property.

Family and Friends May Not Have Answers
When you listen to friends or family who have lost their homes, ask them if they consulted an attorney. Did they fight for the home that their family grew up in or did they simply turn the home over in a short sale or file bankruptcy and lose a lot?

The options vary because every individual and business economic situation varies. You may qualify for one of several federal plans, and if you don’t Lanigan and Lanigan will work with you and with mortgage workout professional Rich Marquez to dig deeper and find out if another option will work for you.

If you like your home, want to save your business or office building then work with Lanigan and Lanigan to find a mortgage workout that will work for you.

There is no one answer and there is no guarantee, but if you don’t try, you’ll lose your home or business. Here is a little more information on what’s available. Please note that these are only two options. There are many more that may work for you.

Home Affordable Refinance Program
If you meet certain criteria, your loan may be eligible for a refinance through the federal Home Affordable Refinance Program (HARP). The program allows qualified borrowers to refinance a home that is upside down. A loan that is from 105 percent to as high as 125 percent of a home’s value.

HARP is for homeowners who are not in foreclosure. Delinquent payments in the past 12 months will automatically disqualify you from eligibility.
However, it’s worth investigating eligibility.

Refinancing through HARP can sometimes shave hundreds of dollars off of a monthly mortgage payment. It can sometimes make a difference between keeping and losing a home.
Option No. 2: HAMP
If you not only have an upside down mortgage and have missed payments, you may qualify for HAMP, the federal Home Affordable Modification Program available through mortgage lenders.
To qualify, you have to show financial hardship that puts your mortgage in imminent danger of default. The mortgage must be owned by Fannie Mae, Freddie Mac or by others signed up with the U.S. Treasury to qualify for HAMP.
While the program provides government incentives (of up to $1,500) to lenders to process these modifications, the ultimate approval rests with the lender.
HAMP is not a refinancing program — it’s a change to the contract terms … that can lower your payments for up to 60 months.
You Don’t Know All the Options
Mortgage Workouts take patience and knowledge of complex financing and refinancing terms. The average home or business owner doesn’t have the background in knowing what a bank wants.
The key is providing timely, carefully prepared paperwork. Presenting your case properly to banks and lenders. Knowing how to contact banks and who to speak to in order to quickly refinance.
Rich Marquez, mortgage professional with Lanigan and Lanigan is not an attorney. He worked in banking and in mortgages. He and his team know how to refinance, restructure, reorganize to make your mortgage payment lower.
If you don’t want to save your home, keep doing what your doing and soon a foreclosure notice will arrive at your front door.
But if you want to save your Central Florida property and are open to the possibilities then consult with Eric and Roddy Lanigan and Rich Marquez. Find out what can be done to lower your interest rate, your mortgage payment and possibly your principal.

Posted at 00:09 AM

Topic: Foreclosures