If you’re struggling to pay your mortgage, you have options before having your lender foreclose on your home (the ultimate worst-case scenario). With the help of a real estate attorney, you can successfully renegotiate your mortgage. Part of your negotiation may include a loan modification so you can still continue making payments.
Read on to learn more about mortgage renegotiation in Florida from the legal experts at Handin Law.
When It’s Appropriate To Renegotiate A Mortgage Rate
Lenders are able to credit closing fees to a borrower if there is a delay. Other times, they may have to get competitive if rates become lower. However, lenders may not be able to give better deals than were given to another borrower, as that would be legally considered discrimination.
So what can you do? In some cases, you may still be able to negotiate. The only caveat is that the negotiation cannot affect the loan officer’s income from commission. Reducing the mortgage rate lowers the lender’s income, but not the officer, as the loan officer must have their interests aligned with yours.
How To Renegotiate A Mortgage Rate
The process of reducing your mortgage can be time-consuming, but ultimately will be worth it if you are successful in keeping your home. While it may not seem like much at first, even reducing the interest rate slightly can help you save money each month. For example, a 30-year mortgage for $300,000 with a 4% interest rate amounts to $1,815 per month. Reducing that same loan to 3.75% results in monthly payments of $1,774 per month. That means saving $14,760 over the next 30 years.
A real estate attorney can help you look at the fine print and explain any parts that seem unclear. It’s always a good idea to have a set of legal eyes look at contracts before you get your pen. An attorney can also help persuade a lender to take unforeseen circumstances into account that may have affected your ability to pay the current rate, such as a medical emergency that resulted in additional expenses.
If you seek a new lender, get quotes from several of them. Each estimate will help you compare the costs over time, including the cost of home appraisals, title insurance, and credit report fees. Keep in mind that lenders with the lowest rates may not necessarily be the least expensive, once the cost of closing fees is figured out.
Mortgage Renegotiation In South Florida
The real estate attorneys at Handin Law can work with you and your lender to modify your mortgage. This may include reducing your monthly payment or extending the amount of time you have to pay it off completely. Having legal help is crucial because we know how to talk to lenders and get them to negotiate fairly.
We have half a century of legal experience in South Florida, representing a diverse range of clients. Our service is characteristically professional and compassionate. For questions, concerns, or to schedule an appointment, call us today at 954-796-9600. We specialize not only in real estate law, but also title insurance, wills and trusts, and more.