Long Island mortgage modification—also known as loan modification—refers to when a borrower works with their lender to change the terms of the mortgage to make it affordable. The borrower qualifies for loan modification on their Long Island mortgage because he or she is facing great financial hardship, is having difficulty making their mortgage payments and is facing foreclosure. Long Island mortgage modification varies by lender, but the process results in temporary or permanent changes to the mortgage rate, term, and monthly payment. The past due amount can also be rolled into the loan, and the new balance gets re-amortized.

Just like the process of obtaining a mortgage is full of complicated details, the same holds true for the loan modification process. For Long Island mortgage holders with severe financial troubles, working with an attorney to sort through these details ensure that you understand the terms of your reinstated loan, protect your interests, and keep lenders accountable.

The federal government working through the “Home Affordable Modification Program”—the program unveiled by the government in February 2009 to help struggling homeowners—plans to standardize mortgage modifications with uniform loan modification guidelines used by Fannie and Freddie Mac. These mortgage modification standards would then be implemented throughout the entire mortgage industry.

Until this standardization takes place, LI homeowners remain largely on their own to navigate mortgage modification. It is important to read all documentation and ask as many questions of your lender as you need until you understand the terms of your loan. It is also wise all along in the process to keep detailed notes on who you speak with and what the conversations were about so you have documentation down the road if you are faced with foreclosure.

–

If struggling to meet your mortgage payments for your home on Long Island you may find relief through a mortgage modification program. In February 2009, the government unveiled the “Making Home Affordable Program” comprised of two main programs: 1) loan modification and 2) loan refinancing.
 

The loan modification portion of the program—called the “Home Affordable Modification Program”—aims to lower struggling homeowners’ monthly mortgage payments to sustainable levels. These lower payments don’t come easy, however. Before any relief from LI mortgage modification can be realized, you must first qualify. If you do qualify, lots of paper work awaits you in order to complete the mortgage modification process, lower your payments and remain living in your Long Island residence.

Speculators or those who bought homes for investment purposes are not eligible for mortgage modification. If you can’t afford your home due to job loss or a complete inability to pay, you don’t qualify either. In order to qualify, you must:

Depending on the severity of your financial problems and to navigate the LI loan modification’s paperwork, you may be wise to consider the council of an attorney familiar with Long Island’s mortgage modification legalities. Having a legal ally on your side rather than relying on the lender’s advice can go a long way in bringing peace of mind and confidence to the anxiety ridden process of saving your home from foreclosure.

–