Melbourne, Florida Mortgage Modification Attorney
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Brevard County survived the mortgage foreclosure crisis and the economic downturn in 2009. However, many Brevard County residents are still finding it difficult to find jobs with sufficient income to pay their mortgage and other living expenses. Over the last 16 years, Bowin Law Group has consulted thousands of Brevard County residents on ways to reduce their monthly expenses to account for their reductions in income. One of the primary ways of reducing these homeowners' monthly expenses is to obtain a mortgage modification to reduce their monthly mortgage payment. There are several loan modification programs, federal and private, that homeowners can still take advantage of if they act quickly. Our Melbourne, Florida Loan Modification Attorney can discuss these programs with you and even help you apply for loan modification assistance.
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Helping Brevard County Homeowners Stay in Their Homes
Facing the threat of foreclosure is one of the most stressful experiences a homeowner can endure. In Melbourne, Palm Bay, Cocoa Beach, and across Florida’s Space Coast, rising interest rates, unexpected medical bills, job loss, or natural disasters have pushed thousands of families to the brink. But there is hope. A mortgage modification can restructure your loan to make payments affordable again — often reducing your interest rate, extending your loan term, or even deferring part of what you owe without interest. At Bowin Law Group, our Melbourne foreclosure defense attorneys have helped hundreds of local homeowners secure permanent mortgage relief. We know the current federal and Florida guidelines inside and out, including the powerful new Streamlined Emergency Property Loss Option (SEPlO) program launched in 2024 and expanded in 2025. Whether you have an FHA, VA, USDA, or conventional loan backed by Fannie Mae or Freddie Mac, we fight to get you approved — fast.
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What Is a Mortgage Modification?
A mortgage modification is a permanent change to the original terms of your home loan. It is not a refinance, and it does not require perfect credit or a new appraisal in most cases. The goal is simple: make your monthly payment fit your current income so you can avoid foreclosure and stay in your home. Common changes include:
- Lowering your interest rate (often to 3–5%, even if your original rate was 6–8%)
- Extending the loan term from 30 to 40 years to spread out payments
- Deferring part of the principal (up to 30% in many cases) with $0 interest until you sell or refinance
- Adding past-due amounts to the back of the loan instead of demanding them upfront
Unlike a forbearance (which only pauses payments temporarily), a modification is a long-term solution. Once approved, your new terms are locked in — and most servicers report the loan as “paid as agreed,” protecting your credit far better than a foreclosure would.
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The End of HAMP and the Rise of Modern Relief Programs
You may have heard of the Home Affordable Modification Program (HAMP), a federal initiative that helped over a million homeowners during the 2008–2009 housing crisis. HAMP officially ended on December 31, 2016. While it was groundbreaking in its time, today’s programs are faster, more flexible, and require far less paperwork. The most important replacement is the Streamlined Emergency Property Loss Option (SEPlO) — a joint program between the U.S. Department of Housing and Urban Development (HUD), the Department of Veterans Affairs (VA), the U.S. Department of Agriculture (USDA), and the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. SEPlO was created in direct response to Hurricanes Helene and Milton in 2024, but it is now available nationwide to any borrower facing a qualifying hardship, including:
- Job loss or reduction in income
- Divorce or death of a co-borrower
- Serious illness or medical emergency
- Natural disaster damage (even if not in a declared disaster zone)
- Other sudden financial setbacks
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How SEPlO Works: Fast, Simple, and Powerful
The beauty of SEPlO is speed and simplicity. Traditional modifications used to require mountains of pay stubs, tax returns, and bank statements. SEPlO eliminates most of that. Key Features of SEPlO (2025 Guidelines):
Feature | Benefit |
|---|---|
No income documentation | No pay stubs or W-2s needed in most cases |
No appraisal required | Saves time and money |
Interest rate reduction | Often 1–2% below current market rates |
Term extension up to 40 years | Lowers monthly payment dramatically |
Principal deferment | Up to 30% of unpaid balance moved to the end of the loan, $0 interest |
Processing time | As fast as 30 days |
Available loan types | FHA, VA, USDA, Fannie Mae, Freddie Mac |
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Florida Law Protects You During the Modification Process
Florida is a judicial foreclosure state, which means your lender must sue you in court before selling your home. This gives you time (more if you hire us) to pursue a modification. Even more importantly, federal “dual-tracking” rules under the Consumer Financial Protection Bureau (CFPB) prohibit your servicer from moving forward with foreclosure while a complete modification application is under review. If they violate this, we can file motions to delay or dismiss the case. At Bowin Law Group, we use a dual defense strategy:
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Who Qualifies for a Mortgage Modification in 2025?
You do not need perfect credit. You do not need to be current on your mortgage. You do need:
- A verified financial hardship (job loss, medical bills, etc.)
- Enough income to support the new, lower payment (even if it’s from unemployment, disability, or retirement)
- The home must be your primary residence (sorry, no investment properties under SEPlO)
If you’re already in foreclosure, you still qualify. In fact, being behind often strengthens your case.
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Types of Loans We Modify in Melbourne
Loan Type | Program | Key Advantage |
|---|---|---|
FHA | FHA-SEPlO | Fastest approval, no income docs |
VA | VA Streamlined Mod | No appraisal, veteran priority |
USDA | Rural Housing Mod | Extended terms for Space Coast rural areas |
Conventional (Fannie/Freddie) | Flex Modification + SEPlO | Principal deferment up to 30% |
Jumbo / Portfolio | Proprietary Workout | Custom negotiation with private lenders |
Frequently Asked Questions (FAQ)
Q: Will a modification ruin my credit?
A: No. A modification is reported as “paid as agreed” once approved. Most clients see their score rebound within 12–18 months.
Q: What if I’m denied?
A: You can appeal the decision. Even if denied on appeal, you can continue to apply. We've seen many families get a modification after previous denials. Don't give up.
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What if I don't qualify for a federal or state mortgage modification program?
Every lender has its own internal or "In-House" loan modification programs that they will consider when you submit a mortgage modification application. Unlike some state and federal programs, these In-House loan modification programs consider the borrower's NET take-home pay (rather than gross income). The In-House loan modification programs also consider the borrower's necessary monthly expenses for things such as car payments, food expenses, health care expenses, insurance, credit card payments, day care, utilities, cable bills, phone bills, student loans, and other monthly expenses. By comparing the borrower's take-home pay to the borrower's monthly expenses, the lender can see what money the borrower has left over every month. With this information, the lender can determine whether a modification is warranted and, if so, how much to reduce the mortgage payments.
Once the lender determines the affordable monthly mortgage payment, the lender can then adjust the mortgage terms to get the desired monthly payment. The lender can either reduce the interest rate, extend the number of years of mortgage payments, reduce the principal amount of the loan, or a combination of these three alternatives. Once the loan is modified, the borrower will be considered current on their mortgage. The borrower is not typically required to make a lump sum payment to cure the past due mortgage payments.
If you are facing foreclosure and/or are considering requesting a mortgage loan modification from your lender, the Bowin Law Group may be able to help.
Proudly Serving:
The Bowin Law Group proudly serves many areas in Florida, including Viera, Cocoa, Cocoa Beach, Cape Canaveral, Port Saint John, Titusville, Palm Bay, Rockledge, Satellite Beach, Indialantic, Merritt Island and Port Saint John.
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