New York’s Loss Mitigation Program | What to Know

New York’s Loss Mitigation Program | What to Know

There are a number of benefits when it comes to filing for bankruptcy. One of these benefits is the Loss Mitigation Program. The Loss Mitigation Program allows debtors and lenders to work together in order to reach an agreement that can save the debtor’s house from foreclosure. Read on to learn more about the program.

Am I Eligible For Loss Mitigation?

Debtors that file for Chapter 7, 11, 12, or 13 bankruptcy may participate in the Loss Mitigation Program so that they may work towards a resolution. Individuals are able to join the program if they have a real property that is used as their main residence.

What Documents Do You Need?

When it comes to the Loss Mitigation Process, you will need to gather the following documents:

  • 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

It is important to work with a skilled attorney who can ensure that your documents are in order.

Benefits to the Loss Mitigation Program

Once you have received a loan modification, your loan term may be extended 40 years with lower monthly payments. Additionally, 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.

For more information regarding New York’s Loss Mitigation program, reach out to our firm of experienced attorneys. We are here to advocate for you and walk you through the process every step of the way. Reach out today to discuss your options.

CONTACT A BANKRUPTCY LAWYER TO DISCUSS YOUR DEBT OR COLLECTION ISSUE

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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