Upside Down House

Florida mortgage modifications are available to borrowers who financially qualify because they have high levels of mortgage debt relative to income or whose home is “upside down” or “underwater” because it’s worth less than the amount of mortgage debt owed. Federal loan modification programs like HAMP and private modification programs offered by banks have been touted as making sensible financial relief widely available to many deserving Americans. Despite the supposed widespread availability of mortgage modifications, many Florida homeowners have found that they have been wrongfully and illegally denied permanent loan modifications by banks and loan servicers.

The Problem

The securitization of mortgages spurred by high demand to invest in pools of mortgages, has complicated the path to permanent loan modifications for many Florida homeowners. Mortgage pools may impose various restrictions, limitations and conditions concerning the availability of loan modifications for mortgages in their pool. Loan servicers often claim, when dealing with borrowers requesting loan modifications, that they are hamstrung by these restrictions and unable to offer the requested modification.

Many Florida borrowers report that they have been approved for trial period plans, have made the three to five months of payments required by the trial period plan and then have been denied permanent loan modifications. Often times these permanent loan modifications have been denied without explanation, leaving the borrower to wonder what went wrong and what prevents them from obtaining a permanent loan modification.

In many instances Florida borrowers are qualified for permanent loan modifications, but lenders or loan servicers simply fail or refuse to approve permanent loan modifications that should be approved. Loan servicers receive significant fees for servicing loans and much has been reported that these fees incentivize servicers to deny loan modification requests because it is more profitable for servicers to continue collecting fees on loans that are in default and which lead to foreclosure. In many cases servicers simpy deny modification requests because they are unaware of how to comply with the myriad conditions imposed by mortgage pools for loan modifications. And in other instances the servicers may simply be inundated with so many modification requests that many requests do not receive the attention necessary to be processed properly.


A Possible Solution

Florida homeowners are increasingly filing suit against mortgage lenders and servicers whom they claim have wrongfully failed to approve their mortgage modification. Florida borrowers have asserted various legal claims in an effort to compel banks and loan servicers to permanently modify Florida mortgages.

Our consumer attorneys are committed to seeking permanent loan modifications for deserving Florida homeowners. We believe that in many instances, Florida homeowners who were denied a permanent loan modification after completing trial period payments can pursue lawsuits that may result in permanent loan modifications.

Contact our consumer attorneys to find out how you may be able to obtain a permanent loan modification.

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