What Is a Loan Modification in New York?

To learn more about loan modifications, continue reading and reach out to our Newburgh bankruptcy lawyer. We are on your side no matter what.

AM I ELIGIBLE TO RECEIVE A LOAN MODIFICATION?

In New York, it is important to recognize that not everyone is qualified to obtain a loan modification. In order to find out if you qualify, the bank will have to check your finances. Some of the documentation needed to apply for a modification can include the following:

  • Profit and loss statements
  • Your personal or business tax records
  • Various financial 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 concerning eligibility requirements, do not wait to reach out to our firm today. We are just one call away.

WHAT ARE THE AVAILABLE CHOICES FOR A LOAN MODIFICATION?

If debtors are having a difficult time with their mortgage payments, loan modifications can be utilized. This permits debtors to adjust their loans so that the payments can better meet their financial requirements. It is essential to recognize the two types of loan modification programs in New York. They include. the following:

  • 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 SHOULD I DO AFTER I OBTAIN THE MODIFICATION?

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

Do not hesitate to reach out to our firm today if you are going through a foreclosure. You may be eligible to apply for a loan modification. Give our firm a call to discuss the details of your case and your options. We are on your side.

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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