Loan Modification in New York

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Our firm is here to help you with your loan modification. Continue reading to learn more and give us a call to discuss the details of your situation with a skilled Newburgh bankruptcy lawyer.

Do I qualify to receive a loan modification?

In the state of New York, not everyone is eligible to receive a loan modification. In order to find out if you qualify, the bank will have to review your finances. Some of the documentation required to apply for a modification can include:

  • Your personal or business tax records
  • Various financial statements
  • Profit and loss statements
  • Paystubs from all wage earners in your household
  • A current utility bill that can confirm you are living in your home
  • A hardship letter that explains the reasons why you are not fit to pay your mortgage at that moment. It is essential that you write this letter with a skilled bankruptcy attorney.

If you have additional questions or concerns regarding eligibility requirements, it is in your best interest to reach out to our firm today. Our legal team is on your side.

What are the available options for a loan modification?

If debtors are having a hard time with their mortgage payments, loan modifications can be used. This allows debtors to modify their loans so that the payments can better meet their financial requirements. It is important to identify the two types of loan modification programs in New York. They include:

  • Government-Run: This program refers to permitting a debtor to expand their loan to a 40-year plan that lowers the cost of their monthly payments and reduces the interest rate of the loan to 2% for a 5-year period.
  • Bank-Run: This option can decrease a debtor’s interest rate, repair an adjustable rate, or not allow them to pay the surplus principal.

What will occur after I obtain the modification?

Recognize that if you get a government loan modification, your interest rate will be reduced to 2%, and your loan term will be expanded to 40 years. Once that is complete, you will start receiving lower monthly payments. On the other hand, an internal banking program may reduce your interest rate, fix an adjustable rate, forgive excess principal, or place your defaulted payments at the end of your loan. This suggests that you may not have to pay these debts until you either refinance or sell your home.

Do not wait to contact our firm today if you are going through a foreclosure. You may be qualified to apply for a loan modification. Give our firm a call to examine the details of your case and your options. We are ready to help.


Michael D. Pinsky, P.C. represents clients in bankruptcy actions and related matters. Please call 845-394-2616 or contact the firm online to schedule a consultation.

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