Questions Regarding New York Loan Modifications
Q: What is a loan modification?
A: A loan modification is a change to any of the terms of your home/mortgage loan. Loan modifications are conducted to help homeowners who are struggling financially stay in their homes and avoid foreclosure.
Q: How can a loan be modified to help me keep my home?
A: When modifying your loan, an attorney can negotiate:
- A lower Interest rate
- The amount of your monthly payments
- Changing your adjustable rate to a fixed rate
- The length of the loan
- To reduce your loan balance
- To bring your mortgage payments current
Q: What is the difference between a loan modification and a forbearance agreement?
A: Loan modifications are meant for people who will never be able to repay or catch up on their mortgage loan, and therefore need long-term help. A forbearance agreement provides relief to people who are only temporarily experiencing financial hardship. Forbearance allows homeowners to delay making payments until they are able to recover financially. Outlined in the forbearance agreement is the set amount of time the homeowner has to overcome their financial troubles and get back on track. After this time, the homeowner will be required to pay their debt/mortgage payments. A loan modification doesn’t require the homeowner to pay back their debt/delinquent payments.
Q: Are there other ways to avoid foreclosure?
A: Yes. If a loan modification isn’t right for you, filing for bankruptcy or a short sale may be better options.
Q: Do I have to be delinquent on my mortgage to qualify for a loan modification?
A: No, but in general it’s easier for people who are delinquent on their mortgage payments to get a loan modification. Loan modifications are meant to help people experiencing financial hardship. Banks and loan officers are more likely to help someone who is having trouble financially.
Q: How long does the loan modification process take?
A: The amount of time it takes to negotiate and process and loan modification varies. In general, the process takes about three weeks to 90 days to complete. However, in some cases it can take as long as 120 days.
If you have questions about loan modifications and foreclosure in New York, please don’t hesitate to contact a New York loan modification lawyer at Jacoby & Jacoby today!