FRIENDLY, AFFORDABLE AND KNOWLEDGEABLE Chapter 7 Chapter 13 Loan Modifications

Long Island Loan Modification Lawyer

The Law Offices of Adam C. Gomerman is a federally designated debt relief agency that specializes in providing several services to consumers. While bankruptcy and debt consolidation are viable alternatives in many situations, there may be a better way to handle some large, secured debts, such as mortgages. One of the services offered by Adam C. Gomerman is expert loan modification. This system has been in use for several decades, but it was a rare achievement to have it done successfully before the housing crisis of 2007 and the global recession that followed.

Overview of Loan Modification

To put loan modification simply, it is the process of asking your lender to make adjustments to your mortgage in order to avoid defaulting on the loan and going through foreclosure. Lenders have traditionally been extremely uncooperative when such requests are presented, but in 2009, the Making Home Affordable (MHA) program was created as part of the Financial Stability Act.

The MHA program is actually a series of programs designed to help homeowners stay in their homes when they cannot afford their mortgage payments, and one of the major components of this federal legislation is the Home Affordable Modification Program (HAMP). HAMP forces lenders to consider home loan modifications as long as the homeowners meet certain conditions.

While homeowners are not required to enlist the services of a loan modification specialist or home loan attorney, the process is extremely complicated, and those who are unfamiliar with navigating through these waters could end up with a deal that is less than suitable. Once a loan modification is accepted through the program, it is difficult, or in many cases, impossible to receive another modification that provides better terms, so it is important to get it done right the first time.

Benefits of Loan Modification

Loan modification can provide homeowners with several benefits that are preferable to foreclosure and refinancing. Some of the most common benefits of loan modification recipients are as follows:

  • Lower monthly mortgage payments
  • Lower annual percentage rate (APR)
  • Conversion of adjustable-rate mortgages to fixed-rate mortgages
  • Modified term, such as a 15-year mortgage converted to a 25-year mortgage
  • Waiver for late fees or missed payment fees
  • Payment extensions
  • Stops or delays to foreclosure proceedings

Not every individual will be able to realize all of these benefits because the terms of the modification are dependent upon the homeowner’s specific circumstances and the willingness of the lender to work with him or her. In addition, not everyone requires all of the above benefits. In most cases, one to three of these benefits will suffice to keep you in your home should you be facing default or foreclosure.

Eligibility for Loan Modification

While participants in HAMP must meet strict eligibility criteria, loan modifications outside of the federal program are also possible. However, negotiating a mortgage is tricky business that is most effectively handled by seasoned professionals who already understand how much lenders are willing to bend in certain situations.

If you feel that loan modification may be the answer to your problems, contact the Law Offices of Adam C. Gomerman today.

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