What is the Loss Mitigation Program in New York?

large suburban house

You likely qualify for the Loss Mitigation Program of the Bankruptcy Court if you recently filed for bankruptcy to stop the foreclosure of your home. You may qualify for a government loan modification program or for the bank’s internal loan modification program if you require a loan modification.

Continue reading to discover what documents you will have to prepare to apply for a loan modification, why you should hire an attorney to assist this process, and the other benefits of the Loss Mitigation program. Reach out to our experienced New York bankruptcy attorney to discuss your situation and learn the options you have for your upcoming legal process. You do not need to go through this time alone. We are here to help.

What documents will I have to provide to apply for a loan modification?

With the assistance of your experienced attorney, you must ensure you have the following information readily available when applying for a loan modification:

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

What are the benefits of hiring an attorney?

One of the benefits of hiring an experienced attorney from our New York bankruptcy firm is that they will hold the knowledge and experience of dealing with the majority of all law firms representing New York State’s banks. We will submit your package directly to the firm and bank representative. The assistance of an attorney will also provide you help in finding and presenting all of the important documents needed to qualify for a loan modification. To be best prepared, retaining the services of an experienced attorney will allow you to tackle any circumstances in which banks will deny loan modifications. Contact our firm today to discuss our services.

What else does the Loss Mitigation Program offer?

Once you have received a loan modification, your loan term may be extended 40 years with lower monthly payments, plus, your interest rate should go down to 2%. The program also offers solutions for alternatives to loan modifications such as loan refinances, forbearance, short sales, and more.

Contact our experienced New York firm

Bankruptcy, for many people, is a frightening endeavor. Fortunately, with the help of an experienced attorney, it does not have to be. If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options. We will have your back every step of the way.