Mortgage Modifications & Negotiations

Mortgage Crisis

As you must be aware there is presently a foreclosure crisis in the United States due to many factors: sub-prime loans, overly aggressive lending and borrowing, a rapidly rising and rapidly falling real estate market and many other global forces that are decreasing our ability to earn the same real incomes as in the past. In this turmoil many homeowners to their dismay have found themselves in arrears on their mortgages and in foreclosure or threatened by foreclosure. To the extent you may be undergoing such difficulty, a call or consultation with our office can help you decide what legal options may help you deal with such potential problems.

The Law Firm of Ronald D. Weiss, P.C. has negotiated hundreds of agreements giving its clients the opportunity to catch up with their mortgage arrears. We have negotiated many mortgage modification agreements, forbearance agreements, payment plans, short sales, deed in lieu agreements and other settlements, which may resolve the foreclosure process. Allowing us to represent and negotiate terms for you ensures a prompt resolution of the foreclosure process. Also, it is critical to have the settlement terms agreed to in a legally binding written stipulation of settlement while making sure that your rights are protected at all times.

While the ultimate goal of mortgage reduction negotiations is very worthwhile, such negotiations can be difficult and uncertain because many mortgage holders and their attorneys are not sufficiently responsive to negotiated offers thereby requiring a significant and persistent effort that involves careful strategy and planning.

It is not your responsibility to know how to reduce your mortgage payments,
it is ours. Please give us the time to help you.

Many homeowners in Suffolk and Nassau Counties, Long Island experiencing financial difficulty with their mortgage payments are obtaining representation in seeking a mortgage modification and are retaining mortgage modification attorneys such as the Law Office of Ronald D. Weiss, P.C. to handle what has become a complex and often difficult negotiation process. Because we are always considering more than one foreclosure solution, we are not solely dependent on mortgage modifications and use a broader approach to mortgage and foreclosure solutions to help our clients. Although this process is usually time consuming and often has many challenges, the goal of a lower mortgage payment and better mortgage terms is very worthwhile. Therefore, the client should maximize their negotiating advantages by having our office represent them for the following reasons:

• We are Foreclosure Solution Attorneys. We can leverage our ability and experience to otherwise defend and protect you in a foreclosure to obtain an agreement. We have more influence with your lender and their attorneys and know how to approach them and how to structure an agreement.


• We are Affordable. Compare us to others. Although our credentials far exceed those of our competition in this area, we charge less.


• Persistence. If we cannot obtain an agreement acceptable to you, such agreement was probably not going to be forthcoming from your mortgage holder.


• Local and Responsive. Unlike the national services that are soliciting this work on a massive scale and are impersonally dealing with files that require individualized care, we are local and can respond to your specific needs.


• Honesty. We are very skilled at what we do but do not pretend that we will always succeed. If we do not reach an acceptable agreement we will be able to represent you and advise you as to other foreclosure solutions.

If you are overwhelmed with high mortgage payments, the Law Firm of Ronald D. Weiss, P.C.
can represent you in seeking a mortgage modification.

Mortgage Modifications

Mortgage modification agreements are currently a strong option for many of our clients are undergoing financial difficulty. In the current economic climate many of our clients are having difficulty affording the amount of their regular monthly mortgage payments. To qualify for a mortgage modification agreement, a client needs to show “hardship,” but at the same time the client also needs to show financial strength sufficient to stay current with the mortgage once they do obtain a potential modification. Many factors are influential in helping a client obtain such a resolution including the value of their home compared to the mortgage balance and the amount of the interest rate under the loan and whether the rate and terms of the loan are high and excessive compared to the currently available rates given the current market conditions.

Government Plan to Help At-Risk Homeowners:
HOME AFFORDABLE MODIFICATION PROGRAM

Under legislation passed during February of 2009, the Federal government has enacted a voluntary program to encourage mortgage lenders to modify mortgages for “at risk homeowners”. The Home Affordable Modification Program allows homeowners to apply to their mortgage lender to renegotiate the terms of their loan under the program. The monthly payment can be lowered by lowering interest and extending the loan term; mortgage lenders can but are not required to reduce the principal of the loan. Part  of the original proposals for this legislation that did not pass the Senate was proposed legislation to allow bankruptcy judges to forceably modify  mortgages if a mortgage lender refused reasonable proposals to do so. At present loan modifications are strictly voluntary and a mortgage lender can reject, deny or fail to respond to a borrower.

The homeowner must be considered to be “at risk” with serious hardship involving either loss of income, increase in expenses or “payment shock” (due to significant increases in their mortgage payments). The loan must be a 1st lien and the home must be owner occupied. Borrowers with equity loans and second mortgages are not disqualified. The loan must be in default or in imminent default. Borrowers can qualify whether delinquent or not, but must have enough income to handle modified payments. Lenders would lower mortgage payments exceeding 31% of gross income by dropping interest rates to as low as 2%, and if necessary, extending the loan term up to 40 years. Servicers of mortgages who lower mortgage payments would get a financial incentive from the Federal government for modifying a loan.

Successful modifications usually involve the client retaining a qualified professional working on their behalf and a concerted and persistent campaign to urge the lender through an application, letters, calls and supportive documents, to modify a particular mortgage loan.

Different Types of Mortgage and Creditor Negotiations:

• Mortgage Modification Agreements
• Mortgage Forbearance Agreements
• Credit Card Reductions/Payment Plans
• Deed in Lieu Agreements
• Short Sale Agreements
• IRS/NYS Offer in Compromise
• Payment Plan Agreements.

Our office is closely following the changes to the federal laws as they apply to mortgage modifications and we are actively using such changes in mortgage modifications negotiations with lenders. The summary of the recent legislation that was approved by congress in the beginning of March 2009 is as followings:

To Read The NY Times Article: U.S. Sets Big Incentives to Head Off Foreclosures - Click Here

To Read The NY Times Article: Slow Start to U.S. Plan for Modifying Mortgages - Click Here