New York Loan Modification Attorney Assists Homeowners Behind on Payments
A home is often an individual’s or family’s most treasured and valuable asset. It is also oftentimes one of the most expensive. Even though some claim that the worst of the Great Recession is behind us, many families still feel their budgets are stretched thin.
When a homeowner (be it an individual or a couple) cannot make their mortgage payments on time, the bank will usually attempt to collect on the past due payments before initiating foreclosure procedures. A foreclosure can result in homeowners losing their home, the home’s sale at a sheriff’s sale or other similar sale, and being held responsible for the difference between the sale price of the home and the remaining balance of the mortgage.
Alternatives to Foreclosure: Loan Modification
Foreclosures are expensive and time-consuming for lenders, and many lenders are interested in avoiding foreclosure proceedings if the borrower is able to come up with a reasonable alternative. One of these alternatives is loan modification. In a loan modification, the lender and borrower agree to materially change one or more terms of the original mortgage, in effect creating a new loan. Most often, the parties will agree to change the payment amount by lowering monthly principal payment while contemporaneously extending the length of the loan. This can help a homeowner who can no longer afford to make the original mortgage payment but is able to make a smaller payment regularly.
A loan modification may be made for a specific period of time (temporarily reducing the payment amount) or may be permanent.
Do I Need a Loan Modification Attorney’s Assistance?
Securing a favorable loan modification requires forceful advocacy and negotiation with the lender. At Mehra Law Group, we take the time to understand your financial situation so that we can argue powerfully on your behalf with the lender. We can create a persuasive case for your lender that can result in the lowering of your payment, a reduction in your interest rate, and/or an extension of time to allow you to catch up on your missed payments. If you are in danger of losing your home, act quickly by calling the Mehra Law Group at (718) 347-6800.