Millions of homeowners around the country availed themselves of forbearance plans due to the COVID-19 pandemic. Forbearance plans allow a homeowner to miss mortgage payments for a given period. In the short term, this is great for a struggling homeowner. However, what the banks and loan servicers don’t tell you is what will happen when the forbearance plan ends. We have seen a wide range of offers. Most of the time, we see the loan servicer requiring all missed mortgage payments to be made immediately at the end of the forbearance.
If someone was struggling and could not make payments, where in the world were they going to come up with 6 months of missed mortgage payments in one shot? Plus, many people were delinquent on at least one mortgage payment when they entered the forbearance and for these homeowners, paying all of the missed payments is the only option that we have seen loan servicers offer homeowners in this position.
For many homeowners stuck in this position, a Chapter 13 bankruptcy may be a great option to explore. In a Chapter 13 bankruptcy, you may be able to get a plan to start making your normal mortgage payments again and get 5 years to catch up on any missed mortgage payments during a forbearance. For someone who is back on their feet and already has a low-interest rate, this could be a great option.
If you are back on your feet but have a high interest rate, you may want to consider going straight to a Fort Lauderdale loan modification or possibly still file a Chapter 13 bankruptcy and enter the mortgage mediation modification program in bankruptcy if you live in South Florida. There are many paths that someone could take after a forbearance and navigating the options can be daunting.
It is important to find an experienced South Florida bankruptcy lawyer who does loan modification, bankruptcies, and foreclosure defense to help you determine which option may be the best option for you. If you go to a law firm that only offers one of these solutions, they are going to throw your case in the same bucket as everyone else’s case, even if that’s not the best option for you. These options are very nuanced, and it takes many years of experience in saving homes to properly advise someone on which path to take.
At Loan Lawyers, we have helped thousands of Florida families navigate through the stressful process of saving their homes and you can put our experience to work for you. As more and more people need help saving their homes, more and more scams and inexperienced lawyers are going to start popping out of the woodwork. You need the best legal advice and assistance you can get, so call Loan Lawyers today for your FREE legal consultation with one of our Florida foreclosure defense lawyers. We will walk you through your options and provide you with a solution that is suited to give you the best chance of saving your home. Call our Fort Lauderdale bankruptcy attorney today at 1-888-FIGHT-13 to schedule your free consultation.
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I have been living in South Florida for the past 40 years. I knew since I was a teenager that I wanted to be an undefined lawyer. When I graduated from law school, I started my own firm in 1999 and haven’t looked back since. In my career, I have helped people with a myriad of legal problems, but nothing has been as satisfying as helping those struggling to save their homes or fighting a creditor. When I go home at the end of a long day and we saved someone’s house or successfully sued a debt collector, it gives me a great deal of satisfaction and happiness like no other area of law ever has.
