What is a “Loan Modification?”
A loan modification is a process in which your lender modifies your existing loan to make it more affordable. It can be in the form of a rate reduction, and a conversion from an adjustable to a fixed rate. In the past, loan modifications were called “forbearance agreements” and were only used when a borrower was delinquent and suffered a hardship such as a job loss, divorce, illness, etc. Now borrowers can obtain mortgage help from their lender for unaffordable rate adjustments, to lower their principal balance in order to sell or refinance their home, or to lower or defer payments until they are back on their feet. With the bailout that the government afforded lending institutions, you no longer need to be late on payments or in foreclosure to modify your loan.
David A. Kaminsky & Associates, P.C. can help.
You may find yourself unable to make your mortgage payments because of rising interest rates and property taxes. You may also be suffering from a recent layoff, divorce, or illness that can have a negative impact on your ability to pay your mortgage. Many people need to modify their existing loans just to fight to keep their homes. We will work with your lender to negotiate a loan modification at a low, fixed payment you can afford. In some cases, we can even reduce your principal balance or defer payments.
Do I need to be delinquent or behind on my mortgage payments?
No, but it will make things easier. Loan modification is meant to help people in financial hardship, and banks are more willing to help you when fit into their programs.
Can you help me with properties that I’m not living in or currently renting out, or that could be considered an investment property?
Is it too late to help clients who have received a Notice of Default?
NO! We can prevent foreclosure up to a few days before the actual transfer sale date. However, if you are thinking of getting help, please don’t wait until you have received a Notice of Sale.
What interest rates can I expect after a loan modification?
The results vary from case to case, and from bank to bank.
How much is the fee?
We are attorneys licensed in the State of New York. We charge our usual hourly rates to start and complete the process. We also pass along any actual out-of-pocket disbursements, such as overnight mail, etc. to the client.
How do I pay?
You can pay with check or credit card.
What are the next steps?