Before accepting that your home will be foreclosed, it might be worthwhile to first explore the loan modification process. Find out if you qualify for a modification and how a seasoned Rockland County loan modification attorney can guide you through the process.
What is a loan modification?
A loan modification is when you work with your lender to adjust an existing loan to better match up your mortgage payments with your current financial situation. Modifying your loan will place back payments you owe back into the loan so you can start beginning making monthly loan payments again, and some banks may even readjust your interest rate to current rates. This is different from mortgage refinancing, which is when you seek a new loan.
What can I anticipate in the loan modification process in New York?
The state of New York requires foreclosure lawsuits that affect a residential property to be assigned to the Foreclosure Settlement Conference Part before the bank can proceed with a foreclosure and sell the property. This law allows you to have the opportunity to start the loan modification process, while also allowing banks to review their financial ability to determine if you qualify for a government loan modification program or the bank’s internal loan modification program. Whichever program is offered, what is important is that your foreclosure action will be dismissed and you will return to a regular monthly mortgage payment.
After the bank reviews your financial ability, you will be required to provide the following documents to the bank to be eligible for the loan modification process:
- A personal or business bank statement.
- Personal or business tax returns.
- Pay stubs from each wage earner in your family.
- A current utility bill.
- A financial statement or profit and loss statement.
- A hardship letter with the reason for your default and current ability to pay the mortgage.
Contact a knowledgeable Rockland County loan modification attorney today to help you process these documents.
Is it possible that my loan modification application will be denied?
The banks will not approve a loan modification if you cannot prove sufficient income to pay your monthly mortgage. If you cannot afford to carry a mortgage with your other expenses, such as estate taxes, insurance, and utilities, the bank is required to take back your house as collateral and cut its losses.
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.