New York, Loan Modification Attorneys.
What is a Loan Modification?
Is a Loan Modification right for me?
Do I qualify for a loan Modification?
Apply Free for a Loan Modification Consultation today.
Castiglia-Rubinstein & Associates devotes a significant part of their
firm to the area of Real Estate. They provides a wide
range of real estate services representing buyers and
sellers in transactions involving commercial and residential
property. From initial negotiations to closing, including
drafting of documents, monitoring contingency periods,
and possible closing issues such as possession agreements.
New York, Loan Modification Lawyer
What is a loan modification?
Loan modification, also referred to as a mortgage modification, restructuring, or workout plan. Plain and simple, it is when a borrower who is facing great financial hardship and is having difficulty making their mortgage payments works with their lender to change the terms of their mortgage loan without having to re-finance. The workout plan could result in temporary or permanent changes to the mortgage rate, term and monthly payment of the loan. The plan’s goal is to help the borrower reduce their monthly mortgage payments to 31% of their gross income. Under Obama’s plan, loan modifications will be standardized, with uniform loan modification guidelines used by Fannie and Freddie Mac, and then they will be implemented throughout the entire mortgage industry.
Who is eligible for a loan modification?
As quoted by the Department of Treasury, “Anyone with high combined mortgage debt compared to income or who is “underwater” (with a combined mortgage balance higher than the current market value of his house) may be eligible for a loan modification. This initiative will also include borrowers who show other indications of being at risk of default. Eligibility for the program will sunset at the end of three years.” As reported in the LA Times, “This program applies to borrowers who are unable to make the normal mortgage payment. The program guide lines allow for a struggling borrower whose mortgage payments exceeds 38% of their monthly income receive mortgage relief through a loan modification. If the lender agrees to lower the interest rate or reduce the principal amount to bring the payment to 38% of the borrower’s income, the government will pay half of the additional cost to the lender to reduce the payment to 31% of the borrower’s income.”
How does someone get a loan modification?
It is always good to hire legal counsel. Our attorneys can walk you through the process with ease. You will have professional advice from an experienced attorney to help guide you through the entire process and any possible pitfalls that you may face along the way.
Only a licensed attorney can help you save your home. Only a licensed attorney can take your lender to court if your bank is not modifying your mortgage loan or in the case that the bank has turned you down for a modification.
Attention Homeowners,
DO NOT LOSE YOUR HOME....HIRE AN ATTORNEY!
One word of warning: This new bill has spawned a whole new wave of loan modification salespeople. Be careful New York State (and several other states) have passed laws making it illegal for any person or company, other than a law firm, to provide loan modification services to the public. If you have been a victim of a loan modification scam, you may be eligible to get all of your money back, free of charge! Call us, we may be able to not only save your home, but get you your hard earned money back.
Why would lenders modify your loan?
Incentives. According to USA Today, the plan also includes incentives to encourage mortgage servicers — who collect fees for refinanced and delinquent mortgages — to work with qualified borrowers to modify loans. Servicers will get $1,000 for each eligible modification they make, and another $1,000 a year for three years as long as the homeowner remains current on payments. Homeowners who stay in their properties and are current will get a monthly balance reduction to help reduce their loan principal. That will amount to up to $1,000 a year for five years. Also, banks would rather have you stay in your home — even if they’re not making the full amount they signed up for — rather than have the house go to foreclosure. They stand to lose more if you foreclosure than if your loan is modified.
Bottom line
It is estimated 3-4 million homeowners will benefit from the loan modification plan.
Call today to see how much you can save on your mortgage with a loan modification.
What Do I Need When Asking for a Loan Modification?
While every bank and case is different, you should be prepared to provide some or all of the following when requesting a home loan modification:
The Hardship Letter
The hardship letter provides you with an opportunity to explain why you need a loan modification. Here, you can provide information about how your family has been affected by job loss, illness, divorce, or drop-off in business revenue. You may be asked to provide additional information to confirm what you claim in your letter or you may be asked to submit additional financial information. In any case, the hardship letters allows you to "personalize" your situation and explain how a loan modification is in the best interests of you and the bank.
Determining If a Loan Modification Is Right for You
A loan modification is intended for people who are struggling to meet their monthly mortgage payment, not for people who are substantially behind in mortgage payments. If your mortgage is in arrears and you are struggling or unable to make payments on credit card, medical,insurance, or utility bills, filing for Chapter 7 or Chapter 13 bankruptcy may be your best option. If you want to save your home you may want to request court intervention with a Settlement Conference Hearing. This will allow you to tell your story to a judge with your attorney and your bank present. If you don't want to lose your home through foreclosure, you can also explore the possibility of a short sale with your Bank. |
Hardship letter
