Modification

Queens, Brooklyn, Bronx and Long Island Foreclosure Defense Lawyers

Loan Modification is an excellent option available to people who are struggling to make their mortgage payments. If you’ve already defaulted on a mortgage or think you will soon, a loan modification can adjust the terms of your loan, saving you from residential foreclosure and making it easier to pay off your mortgage

Loan modifications must be negotiated with your lender so it is very important to work with a law firm who can help you understand the terms of a modification and advise you on how to proceed. At Poltielov & Habib, LLP, our New York City loan modification attorneys are skilled, experienced advocates for homeowners. Contact us today for a free, fully confidential consultation.

Mortgage Loan Modifications: Understanding the Basics

A loan modification (mortgage modification) is a voluntary agreement between a borrower (homeowner) and a lender to adjust the terms of a mortgage. As a general rule, loan modifications are negotiated when homeowners are struggling to keep up with their mortgage payments. A loan modification could result in the change of:

• The interest rate;
• The duration of the loan; and/or
• Monthly payments.

As part of a loan modification agreement, some fees may be waived. It is even possible that a portion of the principal or the accumulated interest could be reduced. To be clear, loan modifications are negotiated by the parties. When mortgage lenders owe certain duties to borrowers, they are not legally required to provide a loan modification.

An Overview of the Home Affordable Modification Program

In February 2009, the Obama Administration introduced the Making Home Affordable (MHA) Program to stabilize the housing market and help struggling homeowners obtain relief and avoid foreclosure. In March 2009, the U.S. Department of the Treasury (Treasury) issued uniform guidance for loan modifications by participants in MHA across the mortgage industry and subsequently updated and expanded that guidance.

The Home Affordable Modification Program (HAMP) is designed to help financially struggling homeowners avoid foreclosure by modifying loans to a level that is affordable for borrowers now and sustainable over the long term. The program provides clear and consistent loan modification guidelines that the entire mortgage industry can use. The Home Affordable Modification Program includes incentives for borrowers, servicers and investors.

Loan Modifications in New York: Frequently Asked Questions (FAQs)

Who Qualifies for a Loan Modification?

Will you qualify for a loan modification? The answer depends on a wide array of factors. As noted previously, loan modifications are voluntary on the part of the lender. To get a loan modification, a homeowner generally needs to prove the following:

1. They have a genuine, good faith financial need for a loan modification;

2. They will be able to make payments in the future with a modification; and

3. They have honestly and accurately presented their situation in their application.

What is an Example of a Loan Modification?

Loan modifications can take many forms. As an example, a financially distressed homeowner may get their 30-year mortgage with 25 years of remaining payments extended to a 40-year mortgage. While increasing the overall cost of the loan, this could significantly reduce the monthly payment and allow them to save their home.

What Happens When You Do a Loan Modification?

When you complete a loan modification, it will change the terms of your loan. Indeed, as loan modifications come through negotiations, you and your lender will agree to alter the terms of your loan. When a modification is complete, the change in terms becomes legally binding.

How Our New York City Loan Modification Lawyers Can Help

Few things in life are more stressful than falling behind on your mortgage. You could be at risk of losing the home that you built for yourself and your family. At Poltielov & Habib, LLP, we are foreclosure defense and bankruptcy lawyers who work tirelessly to help people save their homes. Loan modification may be the best option for your situation. When you reach out to our Queens law office, you will have a chance to consult with a New York loan modification attorney who can:

• Listen to your story and answer questions about the loan modification process;
• Gather and organize all of the necessary financial documents and paperwork;
• Represent you in any loan modification negotiations with your lender(s); and
• Develop a comprehensive legal strategy to help you get the best outcome.

Contact Our New York Loan Modification Attorneys Today

At Poltielov & Habib, LLP, our New York City loan modification lawyers are experienced and effective advocates for homeowners. If you have any specific questions about mortgage loan modifications, we are here to help. Give us a call now or contact us online to set up your free, fully private consultation. With an office in Queens, we provide loan modification services in Brooklyn, the Bronx, Manhattan, Staten Island, Nassau County, Suffolk County, and Westchester County.