When homeowners are struggling to make their mortgage payments each month, they may want to consider their options in an effort to save their home from foreclosure. A loan modification is simply to assist the debtor in making their payments. Typically, the payments will be less costly but stretched out for a longer period of time.
When you apply for a loan modification, it may either be through the bank or through a Government modification program. In New York, debtors will go through the Foreclosure Settlement Conference to determine whether they qualify for either of these options. Once the meeting has determined that you are eligible, you will need to bring a number of different documents to your attorney. These documents may include:
- Personal bank statements
- Personal tax returns
- A utility bill
- Pay stubs from every contributing family member
- A letter explaining why you can’t make your mortgage payments
It is important to make sure that you are aware that the bank will only approve a loan modification if you can prove that you have the income to make these payments. If you don’t have sufficient income, the bank will have to take back your home. If you have questions about what you can do to save your home from foreclosure, contact an experienced bankruptcy attorney today to discuss your options.
If you require the services of an experienced bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options.