Bankruptcy Attorney Manhasset Loan Modifications

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Helping Homeowners Obtain Loan Modifications to Prevent Foreclosure in NY

More than 8,000 people choose to make Manhasset, New York their home. While Manhasset is a quiet retreat from the noise and activity of New York City, the prices of real estate still reflect its close proximity to Manhattan, as well as its desirability. The median home price was recently reported to be more than $1.4 million, with many properties far exceeding that price. People pay a substantial amount of money every month just to live in the Manhasset area and it is inevitable that some homeowners will experience financial problems.
If your financial situation prevents you from paying your mortgage, you may believe that you have no options to prevent a foreclosure by your mortgage servicer. However, you should realize that there are options that allow you to keep your home whether you have fallen behind on payments, are in default, or are already subject to a foreclosure action. One of the most beneficial options is obtaining a mortgage loan modification from your lender.
The best way to know your options and whether a loan modification is possible is to discuss your options with a highly experienced New York foreclosure defense attorney. The Law Offices of Ronald D. Weiss has helped many clients in the Manhasset area obtain loan modifications to significantly better their situations, so please contact our office today for more information.

What is a Loan Modification?

A loan modification is a form of loss mitigation intended to avoid foreclosure and help homeowners regain control of their mortgage payments. Simply put, a homeowner and mortgage lender agree to new permanent terms of the mortgage loan, which result in a more affordable payment for the homeowner. Modified terms can include:

• A reduced interest rate
• Conversion from a variable to a fixed interest rate
• Extension of the length of the loan term

An experienced attorney can determine which modified terms will be most beneficial in light of your financial situation and can negotiate with your lender for those specific terms.

Applying for a Loan Modification

Mortgage lenders are not always generous when it comes to approving mortgage loan modifications. The federal programs that set out standardized criteria for awarding modifications are no longer active, so homeowners are at the mercy of their lender. Mortgage lenders can have varied and arbitrary criteria for approving modifications and many homeowners find that their applications are denied and they still face foreclosure and the loss of their home. In order to best improve your chances of obtaining a loan modification, you should seek help from a skilled attorney who understands the application process and what financial institutions may consider.
Generally speaking, in order to be eligible, you must demonstrate the following:

• That financial hardship prevents you from affording your current payment
• That you can afford a modified payment by completing a trial period

You must provide a significant amount of documentation to your lender, which may include proof of your income, tax returns, bank statements, and other financial statements. You will also need to provide a statement of hardship and an attorney will understand how to best show financial hardship that can qualify you for a modification. The sooner you get approved for a loan modification once you recognize your hardship, the better your chances can be of avoiding default and foreclosure.

Loan Modification in Foreclosure Cases

New York has a judicial foreclosure process and the courts have been clogged for years by foreclosure cases. In recent years, New York laws have been amended several times in an attempt to help resolve foreclosure cases with homeowners retaining ownership. Under New York CPLR 3408, lenders bringing foreclosure actions are required to engage in mandatory settlement conferences with homeowner defendants. Lenders are required to go into these negotiations in good faith, and the law expresses a preference for reaching a loss mitigation agreement instead of foreclosure and, specifically, a preference for home-saving loan modifications.
Even though lenders can face sanctions by the court for failing to negotiate in good faith, institutions can still be reluctant to consider loan modifications in many foreclosure settlement conferences. Having the right attorney representing you during these proceedings can help increase your chances of a successful settlement agreement for a modification. Our attorneys can skillfully negotiate with your lender and hold your lender to the good faith standard, pursuing court interference if a lender negotiates in bad faith.
Our law firm also represents clients in foreclosure mediation proceedings. Even though this process involves a neutral party facilitating the negotiations, it is still imperative to have legal representation by a lawyer who knows how to fight for your best resolution. If you do reach an agreement for a loan modification and abide by the terms of the agreement, your foreclosure case will no longer be pursued.

Obtaining a Modification Through Bankruptcy Loss Mitigation

Filing an application directly with your lender and engaging in foreclosure settlement negotiations or mediation are not the only ways to obtain a loan modification. Our lawyers know how to fight for loan modifications through the bankruptcy loss mitigation program in the U.S. Bankruptcy Court for the Eastern District of New York, which is the jurisdiction overseeing Manhasset bankruptcy cases. Loss mitigation is also available in the U.S. Bankruptcy Court for the Southern District of New York.
Filing for Chapter 13 bankruptcy can help homeowners prevent foreclosure in several ways, one of which is obtaining a modification through the loss mitigation program. Bankruptcy filers can request to participate in loss mitigation if they own property – a primary residence – that is at risk of foreclosure. The homeowner and lender will then be required to exchange information and participate in loss mitigation sessions in an attempt to reach a settlement agreement as an alternative to foreclosure. An attorney can use loss mitigation to fight for a loan modification that can help you gain control of your mortgage payments.
Obtaining a modification through a bankruptcy case can have other benefits, as well. The automatic stay will halt any current foreclosure proceedings. You can pay off your mortgage arrears as part of a Chapter 13 repayment plan while you obtain a more affordable current payment. You may also be able to discharge 2nd mortgages and other liens on your home. Furthermore, it can be easier for your attorney to pressure a lender into agreeing to a modification through bankruptcy loss mitigation. If you do reach an agreement, it will be part of the bankruptcy order and you will not have to dismiss your bankruptcy case even if you reach a settlement agreement.

Contact a Manhasset Foreclosure Defense Law Firm to Learn Your Options Today

At the Law Office of Ronald D. Weiss, our attorneys help clients throughout the Manhasset area obtain loan modifications in a number of ways. We will thoroughly review all the details of your financial situation and recommend a plan to resolve your financial issues, including your mortgage and other debts. We handle foreclosure defense, loan modifications, and bankruptcy, so we can help with every aspect of your case. Please call 631-271-3737 or contact us online to learn the different ways our office can assist you and your family.