Mortgage loan modification help in Miami
When it comes to a state that has struggled in recent years to combat the financial crisis in the housing market is Florida, second only to California. If you live in Florida and you are looking for the best way to solve your Mortgage problems, DebtCrushers has the legal experience and the professional team to be able to get you the best possible result available under the law.
DebtCrushers will represent you to aggressively pursue a suitable modification agreement with your lender.
If we determine that you are a good candidate for a bankruptcy, loan modification or short sale, you can be confident that we have the legal expertise and knowledge required to pursue a successful resolution on your behalf.
When it comes to a loan modification, time is of the essence.
If you are facing financial hardship and you need to pursue a mortgage loan modification, it is most important that you do not wait to legal help. If you act quickly, the more options, opportunities, and a much better chance of success. The quicker you act, the more incentive for your lender to reach an agreement, earlier in the process.
Our team of Miami Bankruptcy Lawyers are skilled negotiators and capable of obtaining a favorable outcome with your lender. DebtCrushers have handled hundreds of loan modification negotiations in the past and brings a wealth of experience to your team.
Contact DebtCrushers, your Miami Bankruptcy Lawyer, for immediate assistance with your mortgage loan modification needs.
RELIEF FROM FORECLOSURE CARES ACT
Federal Foreclosure and Eviction Suspensions; Mortgage Loan Forbearance
Enacted on March 25th 2020, the CARES Act Relief from Foreclosure: CARES Act § 4022 provides foreclosure relief for “federally-backed loans,” which means loans (for 1–4 family properties) purchased, securitized, owned, insured, or guaranteed by Fannie Mae or Freddie Mac, or owned, insured, or guaranteed by FHA, VA, or USDA. About one-third of residential mortgages are not federally backed and thus not covered by the Cares Act. Although the possibility may exist in the future, CARE Does not revive all expired loan modification programs implemented after the financial crisis of 2008 like: TARP, HAMP or HARP. These homeowners (and tenants) will have to rely on their lenders and future federal action or state orders.
Under the CARES Act, a servicer of federally backed mortgage loan may not: initiate any judicial or nonjudicial foreclosure process, move for a foreclosure judgment, order a sale, or execute a foreclosure-related eviction or foreclosure sale. The provision lasts for not less than the sixty-day period beginning on March 18, 2020.
Under the CARES Act, homeowners with federally backed mortgage loans affected by COVID-19 can request and obtain forbearance from mortgage payments for up to 180 days, and then request and obtain additional forbearance for up to another 180 days. During a period of forbearance, no fees, penalties, or interest shall accrue on the borrower’s account beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract. The covered period appears to be during the emergency or until December 31, 2020, whichever is earlier.
CARES Act Forbearance Rights for Owners of Multi-Family Properties (5 or more units) and Rights of Their Tenants: The Act provides for different forbearance rights for owners of multi-family property, and also provides that tenants are protected from eviction if the owner seeks such forbearance.
CARES Act Protections Against Eviction: During the 120-day period beginning on the Act’s enactment date, the lessor of a “covered dwelling” may not file a court action for eviction or charge additional fees for nonpayment of rent. See CARES Act § 4024(b). After that 120-day period, the lessor cannot require the tenant to vacate until it gives the tenant a thirty-day notice to quit. See § 4024(c). Remember that a covered dwelling is one where the building is secured by a federally backed mortgage loan or participates in certain federal housing programs.
How to Determining if a Mortgage Loan Is Federally Backed:
The CARES Act foreclosure and forbearance provisions apply in large part only to “federally backed mortgages.” In addition, prior to CARES Act enactment different federally backed mortgage investors had announced different foreclosure policies It is thus imperative to determine if a loan is federally backed and which investor is the backer: Fannie Mae, Freddie Mac, Federal Housing Administration (FHA), Veterans Affairs (VA), and the U.S. Department of Agriculture’s Rural Home Service (RHS).
The following tools let one quickly determine which investor backs a particular homeowner’s mortgage loan:
- Fannie Mae and Freddie Mac have easy loan look-up websites to determine if they own a mortgage. See https://ww3.freddiemac.com/loanlookup/ and https://www.knowyouroptions.com/loanlookup#.
- To determine if a loan is FHA-insured, look for an FHA case number on the mortgage document, specific language in the mortgage and note forms, or through the payment of an FHA premium on the mortgage statement. In some cases, unfortunately, loans may have been stripped of their FHA-insured status; call HUD’s National Servicing Center at 877-622-8525 if there are questions.
- A VA-guaranteed loan also has specific language in the note and mortgage identifying it as a V A loan, and there are fees paid to the VA noted in closing documents.
- While a borrower with a mortgage directly extended by the RHS will be very familiar with the agency, homeowners with privately serviced RHS-guaranteed loans often do not know the loan’s status. If an RHS-guaranteed loan is suspected, directly ask the servicer to review the homeowners’ closing documents.
Links to Foreclosure Suspensions by Federally Backed Mortgage Investors in Effect Prior to the CARE Act:
- FHA — https://www.hud.gov/sites/dfiles/OCHCO/documents/20-04hsgml.pdf
- VA — https://www.benefits.va.gov/HOMELOANS/documents/circulars/26_20_8.pdf
- USDA Direct (bottom of page 1) — https://www.rd.usda.gov/sites/default/files/USDA_SA_COVID19_SFHContinuity03202020.pdf
- USDA Guaranteed — https://www.rd.usda.gov/sites/default/files/USDA_RD_SA_Foreclosure_and_Eviction_Relief_COVID19_NationalEmergency.pdf
- Fannie Mae — https://singlefamily.fanniemae.com/media/22261/display
- Freddie Mac — https://guide.freddiemac.com/app/guide/bulletin/2020-4
Federal Banking Agency Guidance on Mortgage Servicing and Loan Modifications
On March 22, 2020 Federal Reserve, FDIC, NCUA, OCC, CFPB, and the Conference of State Bank Supervisors have issued an Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus. We have yet to see how these programs will actually work. Therefore, having a well-informed legal team on your side, can help you stay ahead and on top of all these potentially complex opportunities, contact DebtCrushers, your Miami Bankruptcy Lawyer, for immediate assistance with your mortgage loan modification needs.