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Bankruptcy Lanigan & Lanigan, P.L.
831 W. Morse Blvd., Winter Park, Florida 32789

407-740-7379

foreclosure

mortgage workouts

Desperate Lenders, Homeowners Try Workout Mortgages

If you’re ready to let your home go or are looking into a short sale or other desperate measure to get rid of your home, first, answer the following questions:

  • You’re looking at your home as a liability because it’s under water
  • You’re trying to lower your mortgage payment
  • You want a lower APR
  • You wish you could somehow erase your second mortgage
  • You’d do anything to have some of your principal forgiven
  • You’d like to keep your home, but you can’t see it ever regaining value
  • You believe your mortgage was processed under a predatory lending practice
  • You feel that you’ve found the paperwork proving that your home loan was robo-signed
  • You have unaffordable monthly mortgage payments
  • Your interest rate is over 6.5%
  • Your home equity line is breaking the bank every month
  • You’ll soon run out of money to pay for monthly mortgage payments

If you’ve answered yes to any of these questions, you should look into whether you can qualify for a home refinance known as a mortgage workout.

Desperate + Desperate = Mortgage Workouts

Lanigan and Lanigan suggest to clients who are desperate for help that lenders are also desperate which makes this the time to try to help themselves save their homes.

There are desperate lenders who are finally, after last year’s settlement that forced them to negotiating with homeowners who are also desperate to keep their homes.

A bank doesn’t benefit from taking a home in foreclosure. Banks are in the lending business, not in property ownership or management. Banks were also forced to work harder with homeowners to renegotiate loans and have been taking financial losses to allow homeowners to stay in their home.

Don’t Be Overconfident: Criteria is Specific

However, there are restrictions and approval is dependent on criteria including but not limited to hardship, income, debt ratios.

A reduced interest rate is typically part of the new terms included in a loan modification. However there is no guarantee you will receive a loan modification. Loan Modification approval is strict but banks and lenders are more open to negotiation because they have to be.

Banks are forgiving equity lines, credit card balances, lowering APRs, forgiving some principal amounts. They’re taking measures to make the home worth its actual value.  

Before throwing in the towel and letting your family home go into foreclosure find out if you qualify for a mortgage workout also known as a mortgage refinance. Call Eric Lanigan and Roddy Lanigan, Winter Park lawyers who will work with you to try to save your home. 

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