A hardship is a temporary reason why you were not able to afford your mortgage and a reason why the situation has resolved itself. If the situation has resolved itself, whatever it was (unemployment, adjusted interest rate, sickness, medical bills, etc.), the amount that you have failed to pay, called the arrears, is negotiated with the bank. In the past you had one option: pay the full amount or foreclose. Now, with the government's help, modifications are available.
In a mortgage modification in Florida or New York, the bank assesses the arrears and either lowers the interest rate for a set period and applies the arrears and other fees to the back end of the loan or they may even extend the number of years that you have to repay it (term). For example, if you owe $10,000 in mortgage payments and your interest rate was 9 percent, the bank may lower your interest rate to 5 percent for five years and put the $10,000 into your loan. You have to understand that the $10,000. did not go away; this arrangement is designed to give you a break on the arrears.
If you cannot afford the modified payment, you should look into other alternatives. There is no guarantee that the bank will accept your application and grant the loan modification. As always, you should have the experience of Johnny The Lawyer behind you to maximize your chances.
If you are late now or are going to be late in your mortgage payments, call Johnny the Lawyer. In most cases, we can obtain additional time for you to make your payments, prevent foreclosure proceedings in Suffolk & Nassau, and possibly restructure the mortgage to be affordable. We also extensively review your finances to provide you with advice on possible bankruptcy and worst-case scenarios. You shouldn't have to worry about someone knocking on your door and throwing you out in the middle of the night. When you're having trouble affording your mortgage, let us get you the time you need.