Loan Modification

There are many solutions available...

...for the homeowners who are behind in their payments. Most people think of bankruptcy as their only option, or enable the Bank to make pleads of their property but there are other options. There are many implications with any of the following options.

While the 'Short Sale' has become very popular, with this option you still have to leave your property. There is an option that allows you to keep your property, reduce payments and potentially reduce the value of its total debt. The loan modification is a legal solution to which you are entitled and which has become very popular in the current crisis.

A general list of the documentation mostly needed by the banks for a loan modification:

  1. HARDSHIP LETTER: Letter explaining your 'financial hardship' or economic difficulty.

  2. EMPLOYMENT/INCOME VERIFICATION: Two recent paychecks (2 last weeks or last 2 months) If you are self employed, you need to provide a state of your income from the last 2 months or a Year-to-date profit and loss statement.

  3. BANK STATEMENTS: two (2) recent statements from your bank account. If you are self employed, you need to provide a state of your income from the last 6 months or a Year-to-date profit and loss statement.

  4. FINANCIAL FORM: All borrowers will ask you to complete a form that they themselves will send to you.



  7. FORM 4506T


Making Home Affordable Program (HAMP)

An option for loan modification

If you can not make your monthly payments, either because the interest rate has gone up or your income has gone down or you're having troubles that have increased your expenditures (such as medical bills), you may qualify for a loan modification that can make your monthly mortgage payments more affordable. Millions of borrowers who are current but are having difficulty making their payments, and borrowers who have fallen behind with one or more payments may qualify.

Who is eligible?

Please read the information below to make a self-assessment of your case and know if you are among the 7 to 9 Million of homeowners that could benefit from the “Making Home Affordable” program. In accordance with your results, we will give you suggestions on what will be the next step to take.

How can I qualify for a loan modification through the Making Home Affordable program? Ask yourself these questions:

  • Is your home your primary residence?

  • Is the amount you owe on your first mortgage at or below $ 729,750?

  • Are you having trouble paying your mortgage? For example: Have you had a significant increase (more than 10%) in their monthly payment or a reduction in your salary since you got the current loan or have you gone through hardships that have increased your expenses (such as medical bills)?

  • Did you obtain your current mortgage before January 1, 2009?

What do I do next?

If you answered yes to all these questions, you may qualify for a loan modification through the Home Affordable Program. The next step is to gather all the information you need to provide to your lender. This includes:

  • Information on the gross monthly income (before taxes) of your family including recent pay stubs, if received, or documentation of income you receive from other sources.

  • Your most recent tax return.

  • Information about your savings and other assets.

  • Information about your mortgage in the first degree, such as your monthly statement.

  • Information on any mortgage in second grade or line of credit secured by the equity in the home.

  • Account balances and minimum monthly payments for each of their credit cards.

  • Account balances and monthly payments on all your other debts such as student loans and auto loans.

  • A letter describing the circumstances that caused your income to go down or your expenses to increase (job loss, divorce, etc.), If applicable.


The economic downturn has had a negative effect on home values throughout America. In the past, homeowners could count on the value of their home to increase, creating a significant nest egg for the future. Unfortunately, countless homeowners now owe more on their mortgage than the value of their home.

If you have fallen behind on your mortgage payments then you face the real possibility of a legal foreclosure action that may leave you without a home and with a negative mark on your credit that will last for several years.

Foreclosure may not be inevitable, though. Working with an experienced lawyer towards a loan modification may enable you to avoid a foreclosure suit and keep your home — if you act soon enough.

The best option for many homeowners who face the possibility of defaulting on their home loan is a mortgage loan modification. While it is certainly not the only option (nor the best one in every case), it can make your mortgage more affordable and help you avoid foreclosure due to late and missed payments.

Our attorneys conduct a comprehensive consultation with you and assist our clients to demonstrate to lenders that their case is worthy of modification.

Also, our attorneys and skilled staff will work with clients on gathering financial documentation from the client so that the most compelling case for modification is presented to the lender. Our attorneys also negotiate with lenders and strive to obtain the best possible modification for our clients.

Beware of any non-attorney who claims they can assist you in modifying your mortgage. The Foreclosure Rescue Act, Section 501.1377, Florida Statutes, went into effect October 1, 2008 and imposed restrictions on non-lawyer loan modifiers offering to protect distressed homeowners. Only a lawyer licensed in Florida can modify your loan. Non-lawyers are prohibited from doing so.

Call the offices of NAVARRO Attorneys at Law today at: 1-800-692-9802, or click here to request a complimentary consultation. We have offices in Miami, Naples & Tampa,to better serve you.