Protect your home from foreclosure and regain control of your finances.
Mortgage Modification in New York
Are you behind on your mortgage payments? Your life situation may have changed, but that doesn't mean you have to lose your home. A loan modification is your second chance at fair repayment terms.
Job loss, unexpected medical bills, or simply a drastic increase in your adjustable-rate mortgage payment – life writes different scenarios. A mortgage modification (Loan Modification) allows you to renegotiate the terms of your current agreement with the bank without having to sell the property.
What does this process involve?
It is a formal change to the loan terms approved by the lender or the loan servicer. The goal is to lower your monthly payment to a level you can afford. This may mean:
- Lowering the interest rate.
- Changing the interest rate from variable to fixed.
- Extending the repayment period.
- In some cases – a reduction of the principal balance.
Why is legal assistance crucial?
This process requires preparing a massive package of financial documents: tax returns, bank statements, and a so-called “Hardship Letter,” which is a justification of your difficult situation. Banks routinely “lose” documents and ask for them to be resubmitted, hoping to discourage the client. As your law firm, we monitor every deadline and maintain constant dialogue with the bank on your behalf to bring the matter to a positive conclusion.
Financial strategy
We analyze your current loan terms and income to determine the realistic chances for a modification.
Application preparation
We compile a full package of documents, including a professional justification of your difficult financial situation.
Negotiations with the bank
We take over all communication with the lender, saving you stress and endless phone calls.
Monitoring and Appeals
We track the status of the application and, in case of an unjustified denial, we file an official appeal against the decision.
Frequently asked questions
- Do I have to be behind on payments to apply for a modification?
Not always. If you anticipate that you will not be able to pay your installments in the near future (e.g., due to job loss), you can start the process earlier. Banks call this “imminent default”.
- What is a “Hardship Letter”?
It is a key document in which you explain the reasons for your financial problems to the bank. We help you formulate it so that it meets the lender’s formal requirements.
- How long does it take to get a decision on a modification?
The process usually takes from several to over a dozen months. Much depends on the bank’s efficiency and the completeness of the provided documentation.
- Is a loan modification the same as refinancing?
No. Refinancing is taking out a new loan to pay off the old one. A modification is a change to the terms of your current agreement, which is possible even if your creditworthiness has deteriorated.
Contact
Need legal assistance?
Call us or fill out the form – the initial phone consultation is complimentary. We will discuss your case, and I will propose the best solution.
- Call now347-524-1587
- Email[email protected]
- Address1200 South Avenue, Suite 201 Staten Island, NY 10314