With our current economy many homeowners are struggling to keep up on their mortgage payments. To combat the grave effects that foreclosures and the economy are having on the real estate market, loan modifications have become increasingly popular.
At JSBarkats our attorneys possess a strong understanding of the loan modification process and procedures. Our attorneys assist clients throughout New York and New Jersey in their individual loan modification matters, and have extensive experience in working directly with lenders.
Because the loan modification process is often confusing and time-intensive, seeking professional legal help is crucial. Our experienced attorneys stand ready to represent you in your loan modification needs.
The Loan Modification Process
Although loan modification requirements will vary from lender to lender, the documents needed to negotiate a loan modification are generally the same. These required documents may include, but are not limited to, your most recent tax return, an income statement, recent pay stubs, and a written affidavit describing the hardship experiened in meeting your financial obligations. In addition to the required documentation, there are three central factors that a lender considers in determining whether to grant a loan modification:
- the financial hardship of the borrower;
- whether the borrower is currently delinquent on mortgage payments or is at risk of becoming delinquent in the immediate future; and
- the borrower’s debt-to-income ratios.
After reviewing these three factors, a lender will determine whether or not to grant a loan modification. This can be a lengthy process which can make the loan modification process overbearing to an individual attempting to work one-on-one with a lender.
One of the biggest reforms to the current loan modification system has been the federal government’s Homeowner Affordability and Stability Plan (“HASP,” but also known as “HAMP”), which was enacted to help qualified homeowners restructure and refinance their mortgages to avoid foreclosure. The HASP targets those homeowners with a “high combined mortgage debt compared to income,” or those who are “underwater” on their home (those with a mortgage balance that is higher than the current market value of their homes). Even if you do not qualify for the governments’ modification program, many lenders have in-house modifications that an experienced attorney can assist you in applying for.
All our services are on a Flat Fee basis.
For more information, please call 646-502-7001 or email us at info@JSBarkats.com