Modifying Mortgage Loans

Part of the divorce mediation process includes assessing and re-organizing your finances.   Each asset and liability is considered in the division of marital property.   Unfortunately, in the current housing market, the family home, which was once an asset, may now be a liability.  Determining what to do with the marital home and the associated loan and mortgage can be challenging.    Mediators guide couples to explore the possibilities.  

Many homeowners are eligible for the Home Affordable Modification Program (HAMP) that began in 2009.  Under HAMP, some borrowers can save their homes by permitting qualified borrowers to re-write their mortgages to reduce the interest rate and monthly loan payment.  This helps people avoid foreclosure.   The program initially gives temporary relief, during which time the borrower makes reduced payments.  If the borrower is successful in making the payments during the temporary period, then the Bank will provide a permanent modification. 

Programs like this provide relief to individuals while helping to reduce the foreclosure rate that continues to fuel the housing market crisis.  Navigating the waters to enjoy this potential benefit can be challenging.  Perseverance and patience is important in successfully modifying a bank loan and mortgage.  It can be time consuming to call your bank and wade through the bureaucratic red tape involved in obtaining a modification to your loan, but the pay off may be worth it. 

Professionals are often the best resource for information about modifying mortgage loans.  Real estate brokers, accountants, financial planners and attorneys with expertise or specialized knowledge about available programs are a good starting point.  While you may not be thinking about bankruptcy, a consultation with a bankruptcy attorney to explore financial options and opportunities may be useful.   You may find out that you can streamline your mortgage and save money.

Divorce Mediation provides a confidential process to explore all the financial options.  Analyzing the various possibilities provides couples additional flexibility in formulating the financial plan.   Good financial planning is a critical component of creating a good divorce plan.    Determining what to do with the marital home is important whether there is equity or you are facing financial hardship.  At Parker Mediation, we want your future financial situation to be sustainable.   Your mediator will help you get on the road to economic stability.