How Does The Loss Mitigation Program Work?

suburban residential home

If you are someone who recently filed for bankruptcy to stop the foreclosure of your home, you should know that you most likely qualify for the Loss Mitigation Program of the Bankruptcy Court. In many cases, you can request a loan modification, which may qualify you either for a government loan modification program or for the bank’s internal loan modification program. If this sounds like something that may work for you, please continue reading and reach out to our experienced New York bankruptcy attorney to learn more about how our firm can help you through the legal process going forward. Here are some of the questions you may have:

What paperwork do I need to apply for a loan modification?

If you are looking to apply for a loan modification, you and your attorney must ensure you have the following information ready:

  • Current utility bills to ensure you are residing in your home
  • Tax returns, either personal or business
  • Bank statements, either personal or business
  • Each wage-earner in your household’s pay stubs
  • Financial statements
  • Profit & loss statements (if applicable)
  • A hardship letter explaining why you cannot pay your mortgage and are therefore defaulting

Why do I need to hire an attorney?

There are several reasons why all individuals at risk of losing their homes should speak with an experienced attorney. To start, our firm has personally dealt with the majority of all law firms representing New York State’s banks, which is why we can submit your package directly to the firm and bank representative. Additionally, we can help you find and present all of the most important documents that will qualify you for a loan modification. There are many circumstances in which banks will deny loan modifications, which is why you must retain the services of an experienced attorney. Once you have received a loan modification, your interest rate should go down to 2%. Additionally, your loan term may be extended 40 years with lower monthly payments.

What else does the Loss Mitigation Program have to offer?

That being said, if you are someone who is looking for an alternative to loan modification via the Loss Mitigation Program, you can still save your home from foreclosure. The Loss Mitigation Program offers various solutions, including loan refinances, short sales, forbearance, and more.

Contact our experienced New York firm

The Law Offices of Allen A. Kolber, Esq. effectively represents clients facing Bankruptcy in Rockland County and all of New York State. Our firm understands the stress one can feel when facing a difficult financial future. Our compassionate staff will work to ease your fears and help you make a new start. If you need quality legal support, contact The Law Offices of Allen A. Kolber, Esq.