If you’re a homeowner who is currently struggling to keep up with your regular mortgage payments, you may feel overwhelmed and unsure of what to do. Fortunately, you do have options. Through a mortgage modification, you may be able to lower your monthly obligations and avoid foreclosure. That said, you should never attempt to attain a mortgage modification without a competent lawyer in your corner. Fortunately, you are in the right place. Contact The Lauterbach Law Firm today for guidance.
Mortgage Modification Lawyer | Here to Represent You
A more favorable loan structure can make a world of difference when it comes to making your payments on time and avoiding foreclosure on your home. If you believe you may qualify for a mortgage modification, reach out to a dedicated Rockland County foreclosure defense attorney from The Lauterbach Law Firm so we can assess your circumstances and determine the best path forward.
Mortgage Modifications in NYS
A mortgage modification is an agreement between you and your lender to modify the original contract of your loan. Unlike a refinance, which replaces your loan with a new one, a modification keeps your loan intact but changes one or more of its features, such as:
- The interest rate: A lower interest rate can reduce your monthly obligations and save you money on interest over the life of the loan.
- The loan term: Extending the duration of your loan can lower your monthly obligations by spreading them over a longer period of time. However, this also entails paying more interest in total.
- The loan type: Switching from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage can provide more stability and predictability in your payments, particularly in an environment of rising interest rates.
- The principal balance: Reducing the amount that you owe on your loan can lower your monthly payments and make it easier to pay off your debt. That being said, this option is rare and may come with significant tax implications.
Factors Determining Eligibility for a Mortgage Modification
A wide range of factors influence whether you may be eligible for a mortgage modification. Just some of those factors are as follows:
- The type of loan you have: Different loans have different eligibility criteria and modification programs. Government-backed loans (such as FHA, VA, USDA, or conventional loans under the purview of Fannie Mae or Freddie Mac) may qualify for standardized modification initiatives. In contrast, privately financed or non-government-endorsed loans could necessitate direct negotiations with lenders for a custom modification.
- The status of your loan: Some modification programs require that you be current on your payments, while others are designed for borrowers who are delinquent or at risk of default. For example, the Home Affordable Modification Program (HAMP), which expired in 2016 but may still be available for some borrowers, was intended for borrowers who were facing financial hardship and had missed at least one payment. The Flex Modification program, which replaced HAMP for Fannie Mae and Freddie Mac loans, is available for borrowers who are current or less than 90 days delinquent.
- The nature of your hardship: Most modification programs require that you demonstrate a valid reason for needing a modification, such as a loss of income, an increase in expenses, a divorce, a medical emergency, or other extenuating circumstances. You will have to provide documentation to prove your hardship and show that it is temporary or permanent.
Common Modification Programs
Some of the most common modification programs that are available for eligible borrowers are as follows:
- Flex modifications
- In-house or proprietary modifications
Our legal team can assess your circumstances, determine which modification may be the best fit for you, and, from there, prepare and submit your application for modification, and negotiate with your lender for a more favorable loan structure.
Contact a Mortgage Modification Lawyer Today
Ultimately, when facing foreclosure, it is imperative that you retain a competent Rockland County mortgage modification lawyer who can effectively represent you and fight for your future. Contact The Lauterbach Law Firm today so we can get started working on your case.