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Considering Mortgage Modification for your Long Island Home?test
Wednesday, April 7th, 2010
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:
- - Have originated your mortgage before Jan. 1, 2009.
- - Be an owner-occupant.
- - Have an unpaid balance that is equal to or less than $729,750 (for a single-family home).
- - Have trouble paying your mortgage due to financial hardship. You will be required to enter an affidavit of financial hardship.
- - Your monthly mortgage payment must also be more than 31 percent of your gross (pre-tax) monthly income.
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.
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