The concept of modification has received a lot of attention over the past year and a half. The Obama administration created a program known as Home Affordable Modification Program (HAMP), which has helped many of our clients. It may depend on the person you talk to as to whether the program has been a success overall but, from our point of view, the program has been very useful in helping our clients find a long-term solution to their situation.

In essence, modification is a non-judicial process that involves negotiating with the lender(s). The homeowner needs to demonstrate a hardship and meet certain financial requirements. The process seems straightforward but, in fact, it is usually all but impossible for an individual to successfully negotiate a modification with a lender. Although HAMP does provide lenders with certain incentives to modify, by and large, lenders are reluctant to do so. There are many reasons for that, but the bottom line is that a homeowner who is serious about modification will likely have to engage the services of a professional.

When it comes to choosing the professional to trust with your modification, you should know that Florida law prohibits loan modification companies from accepting up-front payments for this service. The reason this law exists is the existence/perception of ongoing problems with fraudulent loan modification companies. There are not many law firms that offer loan modification services, and fewer still that really have the experience and personnel to bring about optimal results. Notwithstanding, with a law firm, the client has peace of mind in knowing the attorney and firm are regulated by the Bar Association.

Please see articles published by HLA attorneys for more information regarding loan modifications.