What is Loan Modification?
A loan modification is an agreement between a lender and a borrower to change the original terms of a loan. If you have fallen behind on your mortgage payments or having trouble affording them due to financial hardship, our firm can help you modify your loan in order to obtain a more affordable monthly payment. Furthermore, as obtaining a loan modification is the most effective way to stop a foreclosure action and keep a borrower in his or her home, we always recommend that our Foreclosure Defense clients consider applying for a loan modification.
There are a number of ways in which a loan may be modified. In the past, our clients’ mortgages have had their interest rates reduced, payment terms extended, arrears capitalized, penalties, interest and late fees waived, and have been converted from adjustable rate or interest only into fixed rate interest and principal loans. All of these tools can be used in combination to result in a lower, more affordable monthly mortgage payment.
However, in order for a borrower to qualify for such a modification, their loan services and the investor holding their note must approve their application. Each services requires slightly different documentation, and each investor has its own criteria. Among other things, this documentation includes a letter explaining the nature of the borrower’s legitimate financial hardship, as well as pay stubs, bank statements, and tax returns. Furthermore, to qualify for the applicable federal modification programs, specific financial criteria must also be met. Given our extensive experience obtaining loan modifications for our clients, as well as our familiarity with the various loan services, current and pending legislation, and the criteria of federal programs such as the Home Affordable Modification Program (HAMP), we are able to assemble packages which maximize our clients’ chances at successfully obtaining a modification. In fact, we have successfully negotiated loan modifications on behalf of our clients with a wide variety of services including Bank of America, Carrington Mortgage Services, CitiMortgage, HSBC Mortgage Services, JP Morgan Chase Bank, M&T Bank, Midland Mortgage Company, Nationstar Mortgage, Ocwen Financial Corporation, OneWest Bank/Indymac, PennyMac Loan Services, PNC Bank, Select Portfolio Servicing, Specialized Loan Servicing, US Bank and Wells Fargo Bank.
Given the high stakes and complexity of the modification application process, it would be in your best interest to have an experienced attorney assist you in pursuing this course of action. We at the Radow Law Group, possess the experience and expertise that will allow us to assist you through the entire modification process. We are diligent, will regularly contact your loan services for updates on your application, and will make sure that all forms are properly filled out and provided to your services in a timely fashion. To further protect your legal rights we ask for court intervention when necessary and are familiar with New York laws that require the banks to engage in good faith negotiations.
However, not all applicants are good candidates for a loan modification. For example, if you have insufficient income to support even a drastically reduced modified mortgage payment, you may be unlikely to be successful even with expert assistance. For this reason, we offer a free consultation, in which we analyze each prospective client’s circumstances in depth, and give an honest assessment of the likelihood of their obtaining a modification. If we do not feel a client will qualify for a modification, we will outline the alternative loss mitigation strategies available to them and are happy to inform them of and assist them with any other available alternatives to foreclosure, such as selling the property in a Short Sale.
If you are struggling to keep up with your mortgage payments, have fallen behind, or are in Foreclosure contact the Radow Law Group, P.C. today to schedule a free consultation to explore the possibility of a loan modification.