loan modification in Florida

 

What are the requirements for a loan modification in Florida?

loan modification in Florida?

Today, approximately 1.75 million Americans remain in forbearance, while another 1.8 million Americans are delinquent on their mortgages. The fallout from COVID-19 may not be fully known for many years to come but market conditions are significantly different from the Great Recession. There are two main differences we see in the market place. First, many Americans have equity in their homes. The median sales price for a home in Florida in June 2021 was $345,000. The average homeowner looks to have between $30,000 - $50,000 in equity in their home. Second, the federal government has offered deferrals and forbearances to homeowners during COVID-19 and now has come out with a number of loan modification programs for federally backed loans. Here is a summary of programs currently being offered.

We represent homeowners seeking loan modifications on their mortgages. The paperwork can be confusing and time-consuming. Call us today at (813) 282-9330 or email us at HELP@floridacl.com to talk about your loan modification. 

FEDERAL HOUSING ADMINISTRATION (FHA)

Extended Single Family Foreclosure and Eviction Moratoria

FHA has extended its foreclosure moratoria for all FHA-insured single family mortgages through July 31, 2021. First legal action should not occur for 180 days after July 31, 2021. This window is crucial for homeowners looking for loan modifications, this is the time servicers will focus on modifications and not on foreclosures.

Extended COVID-19 Forbearance Request Timeframes

FHA is extending the time for homeowners to request new forbearance plans to September 30, 2021. If you haven't previously been in a COVID-19 forbearance you can still request a forbearance which may pause or reduce mortgage payments. FHA homeowners applying for the COVID-19 Forbearance between July 1, 2021, and September 30, 2021, may receive up to six months of relief from payments.

Homeowners who have already received their forbearance between July 1, 2020, and September 30, 2020, may be eligible for an additional three-month forbearance extension of their forbearance.

COVID-19 Advance Loan Modification

FHA has introduced a new loan modification program they call the COVID-19 Advance Loan Modification (COVID-19 ALM). COVID-19 ALM is supposed to offer payment relief to eligible homeowners. COVID-19 ALM is for borrowers who are 90 or more days past due on their mortgage when their forbearance ended. This program is designed top bring homeowners with a 30-year mortgage current and should reduce principal and interest by at least 25 percent.

Home Equity Conversion Mortgage COVID-19 Extensions

For seniors with Reverse Mortgages affected by COVID-19, you can request an extension to prevent servicers from calling your loan due. Extension requests can be made between July 1, 2021 and September 30, 2021 and once an extension request is made servicers must grant homeowners the extension for up to six months.

If your Reverse Mortgage has been called due, servicers must approve homeowner requests for an extension for any foreclosure or claim deadline related to foreclosures which will extend any deadlines by six months. These extension requests must be made between July 1, 2021, and September 30, 2021.

If you already received an extension between July 1, 2020, and September 30, 2020, you can request one additional three-month extension.

FREDDIE MAC FLEX MODIFICATION

 The Freddie Mac Flex Modification provides eligible homeowners options to resolve delinquencies and maintain their home ownership. Some interesting notes on The Freddie Mac Flex Modification program include the fact that if you are delinquent 60 days or more then you may eligible for a modification on your homestead, second home or vacation property. Moreover, if you are current, but facing imminent delinquency or less then 60 days delinquent then you are eligible to apply for this modification on your homestead. So options are available for homestead and investment properties. 

The Freddie Mac Flex Modification has more moving parts depending on the type of home, type of loan, home-to-income ratios, and length of delinquency. For more information you can reference The Freddie Mac Flex Modification Reference Guide.