A loan modification in Miami means changing the original agreement between lender and borrower. You are telling your lender that you cannot afford the original payments, and asking for different terms. Keep in mind that you are asking for a favor from them. The Florida loan modifications process can be very long and stressful. It can take several months. While every loan modification is different, here are the basic steps.
- Create a finance sheet with all your expenses. You need to show the bank where your money is going. If you do not know how to create a financial spread sheet, consider hiring a Miami foreclosure attorney. You should include all your expenses and bills, including bills you have not been able to pay in the last few months. Your income may end up being less than your monthly bills, and that is fine. The entire point is to show you are under severe financial stress. Above all, be honest. If you have documentation where you have cut back financially, include it. You need to show that you really have been trying to up hold your end of the original agreement.
- Determine the current value of your home. Search for online for CMA– comparative market analysis. Or check at your county court house or ask a realtor if they can help. This step should not cost you any money. The purpose of this step is to show that there is a difference between what you owe on your home and what it is now worth. If you are facing foreclosure in Miami, this process may help you keep your home by lowering what you still owe.
- The next step is to write a hardship letter. You will send this letter along with paycheck stubs, your expense sheet and the comparative market value requesting a change in the terms of your mortgage. This letter should be around a page and personal but also direct. A few points you want to include: Why you can no longer pay your mortgage (a salary cut, for example), that you have been trying to hold up your end of the deal, and that you want to pay your mortgage. You are asking for a favor, keep that in mind.
- Once you have all the paperwork together, call your lender and ask for the Loss Mitigation Department. This first call may take hours, so be prepared for that. Have all of your documents close at hand and be ready to fax them over. Keep in mind that these calls may get frustrating. Keep your temper in check, lenders are far more likely to help you if you are polite and easy to talk to. Keep a journal of the dates and times and the name of the person you speak with every time you converse with your lender.
- The last step is simply to wait. Unfortunately while your bank makes their decision, this is all you can do.