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.

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