What Should I Know About New York’s Loss Mitigation Program?

What Should I Know About New York’s Loss Mitigation Program?

One of the benefits of filing for bankruptcy is the Loss Mitigation Program. To learn more about this and what is offered through it, continue reading and reach out to our skilled New York bankruptcy attorneys today. Our firm is here for you and will stick by your side each step of the way.

What is a Loss Mitigation Program in New York?

The Loss Mitigation Program that is offered in New York bankruptcy court is used to aid individuals in finding a solution to their financial problems. In some instances, loss mitigation can be used to save a home from foreclosure or erase specific costs that a debtor may have been accountable for paying.

How do I know if I am eligible for loss mitigation?

Those who file for Chapter 7, 11, 12, or 13 bankruptcy may engage in the Loss Mitigation Program so that they may work towards a resolution. Additionally, individuals are able to enter the program if they have a real property that is used as their main home.

To learn more about eligibility, do not wait to reach out to our skilled New York bankruptcy attorneys today. At Micahel D. Pinksy, P.C., we are here to help you during this time.

What documents are required for the Loss Mitigation Process?

It is important that you have the proper documentation before you go through the Loss Mitigation Process. The documents you will need to have included the following:

  • Current utility bills to ensure you are residing in your home
  • Tax returns, either personal or business
  • Profit & loss statements (if relevant to you)
  • 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 in your best interest to have an experienced New York bankruptcy attorney on your side to ensure that your documents are correctly gathered. Our legal team is here to help.

What are the benefits of the Loss Mitigation Program?

After you have obtained a loan modification, your loan term may be prolonged up to 40 years with lower monthly payments. Furthermore, your interest rate will likely decrease to 2%. The program also provides 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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