Mortgage Modification: Time is Not on Your Side

If you can no longer make your mortgage payments but you don’t want to give up your house, a loan modification may be a viable solution. Under the government’s Home Affordable Modification Program or HAMP, you can request your lender to restructure your loan so you’ll end up paying smaller monthly installments.

Before Foreclosure

Though foreclosure is something no one wants to face, it helps to understand the foreclosure process in Florida—especially since much can be done before foreclosure to better your outcome.

Missing One Payment

The road to foreclosure starts when you miss one payment. If you want to avoid foreclosure altogether, it is important to update payments as soon as possible. You will incur a late fee due to your missed payment, so be sure to take this into account.

America’s Seniors More at Risk of Foreclosure

Although the past U.S. housing crisis left plenty of people struggling to keep their homes, none were as affected as the American senior population. A 2011 survey identified homeowners over 75 as having the highest foreclosure rate for people over 50. According to a report from the Consumer Financial Protection Bureau, the percentage of seniors with mortgage debt increased from 22 percent in 2001 to 30 percent a decade later. In that same time period, the rate more than doubled among those aged 75 and older, from 8.4 percent to a staggering 21.2 percent.

Loan Modification: Best Done Sooner than Later

When it comes to saving a home from foreclosure, one of the best solutions you can use is to apply for a loan modification. Think of it as a backup plan that you can fall back on. It’s possible that you won’t get the verdict you want, which is to retain your home, out of your foreclosure case. Your foreclosure lawyers will likely advise you to start talking to your lender about loan modification while they defend your foreclosure case.