What Is Loan Modification? Can I Do This On My Own?
You can attempt to negotiate a loan modification without the assistance of an attorney. I would certainly recommend that you do not, under any circumstances, hire a non-attorney loan modification company. Many times, these unscrupulous companies will take peoples’ money and not do a thing. A loan modification is exactly what it sounds like. The bank is modifying the terms of your loan. As part of the process, you submit a financial statement of your income and expenses. The bank will assess this information and may agree to lower your interest rate or lengthen the amount of time the payments are due or both.
If you had 20 years of payments left, the bank may make it a new 30-year loan, which will in turn lower your monthly payment. I’ve seen banks go to 40 years to lower the payment to try and make the monthly payment as affordable as possible. Sometimes, banks will back end the rearranges. If you’ve fallen behind one hundred thousand dollars on your mortgage, they’ll make it into a balloon payment that’s due at the end of your loan. You get an affordable payment today so that you can stay in your home. However, when you go to sell or refinance the house, you’re still going to owe that hundred thousand dollars. I have obtained loan modifications where the bank will forgive the ballooned amount provided you satisfy certain criteria, like remaining current for a period of years on your mortgage. This is, unfortunately, not necessarily the norm.
For more information on Loan Modifications In The State Of New York, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (212) 766-9779 or (718) 979-9779 today.
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