How Does New York’s Loss Mitigation Program Work?

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To learn more about New York’s Loss Mitigation Program, continue reading and give our skilled legal team a call today. Our dedicated and experienced Newburgh bankruptcy lawyer is on your side each step of the way. Here are some questions you may have:

What is the function of New York’s Loss Mitigation Program?

You will want to recognize that in the state of New York, bankruptcy court offers a Loss Mitigation Program that is used to assist people to reach a solution to their financial issues. In some circumstances, Loss Mitigation can be used to protect a home from foreclosure or remove specific costs that a debtor may have been accountable for paying.

Once you have obtained a loan modification, your loan term may be spread up to 40 years with lower monthly payments. It is important to also note that your interest rate will also likely decrease to 2%. The program also provides solutions for opportunities for loan modifications such as loan refinances, forbearance, short sales, and more. If you would like to learn more about this program or have any further questions, it is in your best interest to reach out to Michael D. Pinksy, P.C. today. Our legal team is here for you.

Am I qualified to receive the benefits of this program?

Individuals who file for Chapter 7, 11, 12, or 13 bankruptcy, may experience the Loss Mitigation Program in order to reach a financial solution. Additionally, individuals can join the program if they have real property that is used as their main residence. It is in your best interest to reach out to our skilled New York bankruptcy law attorneys today if you have questions regarding your eligibility for New York’s Loss Mitigation Program. You can depend on our team to help you during this difficult time.

What documents are required for this process?

It is essential to recognize that you will want to make sure that you are supplied with the proper documentation before entering the Loss Mitigation Process. It is highly likely that you will need to have the following documents available for this process:

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

Do not hesitate to reach out to our firm today if you would like to start this process. Our legal team will help you confirm that your documents are adequately gathered. We are on your side no matter what you are going through. Give us a call today to get started.

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