Understanding the terms of a loan forbearance
A temporary legal agreement that should be managed by your Miami foreclosure attorney
What originally sounded like a simple problem: find homeowners underwater on their mortgages due to the real estate crisis, then solve it by helping them modify their loans and avoid foreclosure has become mired in a long list of legal requirements. Unfortunately, this “simple” problem isn’t so simple to solve.
While the term ‘loan forbearance’ means a temporary legal agreement between the borrower and lender to modify the mortgage terms, the structure of the modification is not completely defined. The terms of a loan forbearance, therefore, can vary from state to state, county to county, and institution to institution.
Those complicated legal agreements control a complex chain of parties that traditionally service mortgages. Many of those parties have been left to interpret the law as they will – putting the typical homeowner without a Miami foreclosure attorney in even more financial danger.
Loan Forbearance is Only One Way to Avoid Foreclosure
There are actually many ways for a homeowner to avoid foreclosure, and a loan forbearance is just one of them. Unfortunately, many homeowners go into the process trusting that the banks know and fully understand the foreclosure process; but really, they don’t. After all, bankers and bank representatives are not foreclosure attorneys. They simply don’t have the necessary experience to interpret the law and stop foreclosure.
Nor do they have any interest in some cases in helping a homeowner avoid foreclosure. After all, if they seize your home they believe they can sell it for an amount that’s more favorable than what they’ll get if they renegotiate. It’s critical that homeowners go into the process with a Miami foreclosure attorney protecting their best interests.
Talk to your foreclosure law firm experienced in mortgage loan forbearance and related issues. Discuss various options such as a loan work-out, loan modification, forbearance agreement, refinancing with a new lender, refinancing under the FHA-insured program, a “short sale” or a deed-in-lieu of foreclosure. Your Miami foreclosure lawyer can help determine which one may be best suited to your situation.
Manage the Loan Forbearance Process with a Miami Foreclosure Attorney
There are a number of important disadvantages to a mortgage loan forbearance, including:
- It’s a temporary agreement, and not a permanent solution.
- Time is not on the side of the homeowner; you must move quickly.
- The new terms – if not skillfully negotiated – may not be better than the previous ones.
- Applying for a loan forbearance may not stop foreclosure.
Whatever your mortgage situation may be, getting the right advice and legal counsel can help you. For a no cost, no obligation consultation and review of your case call a Legal Help Group Law Firm professional right now at 877-304-9404, or fill out the “contact me” form to connect with a Miami foreclosure defense attorney.