Loan Modification Information
Sometimes a person's financial circumstances can change, making it difficult if not impossible to make mortgage payments. When a person falls behind on their mortgage payments, or stops paying their mortgage completely, they are in danger of foreclosure, which means that they could lose their home. Simply put, a loan modification is a change to one or more terms of a mortgage. Changes may be made to the payment amount, the life of the loan, or the monthly payment amount. Loan modifications make it possible for Long Island homeowners to adjust the terms of their mortgages to meet their current financial situation, which may be significantly different from what it was when the mortgage was originally established.
Benefits of Loan Modification
As you can see, a loan modification can be a great way to avoid foreclosure, and can reduce a great amount of your financial stress and worry. By adjusting the terms of your mortgage, you will find yourself in a much more realistic position financially speaking, and a Long Island bankruptcy lawyer from our firm can help you achieve this. An experienced attorney can negotiate to have your mortgage loan modified as follows:
- Changing the terms of your loan
- Changing the mortgage from an adjustable rate to a fixed rate
- Changing the length of the loan
- Extending the payments
- Waiving accrued interest
- Reducing the balance of your loan
Seeking a Loan Modification
Many individuals in Long Island are surprised to learn that lenders are often willing to negotiate a loan modification instead of foreclosing. Foreclosure is a demanding process, and banks and lenders typically incur significant financial losses by foreclosing on properties. Most banks and mortgage companies would much rather negotiate a loan than foreclose on property, but it is still important to have an attorney handling the negotiation to ensure you won't be taken advantage of in the loan modification.