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Brooklyn Mortgage Modification Attorneys Saving Homes

We Can Obtain Mortgage Loan Modifications, and/or other Distressed Property Solutions, Which Have Previously Been Denied

The most common strategy used by our firm to prevent a house in severe mortgage arrears from going into foreclosure is a mortgage modification. Mortgage modification and other potential Retention Options are the potential goals of most homeowners in foreclosure because most people experiencing serious hardships with their mortgages are looking for “Retention Options,” options that allow a resolution of their mortgage issues that allow them to keep, rather than lose, their homes. With mortgage modifications, our clients’ mortgage arrears are absorbed into the remaining mortgage principle balance, so minimizing the risk of repossession.amount in default by increasing the loan’s principle. Mortgage Modification aims to make new monthly mortgage payments affordable, even though the restructured loan is larger. This can be achieved in a few different ways, including lowering the interest rate, extending the loan’s duration, deferring some interest arrears to the end of the loan, forgiving part of the arrears, and/or c) deferring some interest arrears to the end of the loan. In a loan modification, the borrowers want to reach a deal that would modify the mortgage to BOTH:

1) Cure the Default: make the homeowner current on their loan and take care of the mortgage’s arrears, so resolving the default’s immediate issue; AND,

2) Reasonably priced Monthly Mortgage Payments: By providing an inexpensive monthly mortgage payment, this method should ideally prevent future defaults by the homeowner.

TRight now, the most popular and effective alternative for homeowners looking to stop mortgage arrears, end foreclosure proceedings, and save their houses is mortgage loan modification. However, this section addresses various “Retention Options” for properties where the mortgage is in default, in case a mortgage modification is not feasible or desired by the borrower. In the event that none of the Retentionare feasible or desired, we address “Non-Retention Options,” or choices for debtors who do not want to retain their distressed property, in the “Debt Negotiations and Settlements” Section. Our skilled staff will increase your chances of getting approved for a mortgage loan modification because of our law firm’s extensive experience with mortgage loan modifications. Should a mortgage modification not be feasible, we will evaluate and look into alternative options for retention.

Property “Retention Options” – In General

In this part, we will go over a few possibilities that homeowners looking for “Retention Options” may consider. These are options that homeowners often evaluate in order to keep their troubled home or other real estate out of foreclosure. We can only evaluate “non-retention” options, or how to best negotiate with the lender to eventually get the property surrendered, after evaluating these retention possibilities and determining that the homeowner is unable or unwilling to save their property. Options for non-retention will be covered in further detail in the separate “Debt Negotiation and Settlements” Section: This section will explain and list the choices for keeping the property, including Mortgage Modification. Among the options for retention are:

1. Mortgage Loan Modification -As previously mentioned, the goal of a home loan modification is to cure a default by incorporating mortgage arrears into the loan principle and establishing favorable new loan conditions that would result in a manageable monthly mortgage payment. In a mortgage modification, advantageous terms are desired, such as a longer loan term, a cheaper interest rate, and the postponement or forgiveness of arrears. There are multiple ways to apply for a mortgage modification: A modification offer that is not requested by the borrower and is made without the borrower’s actual application. i) Direct application/negotiations with the lender; ii) Application during a foreclosure litigation as part of Foreclosure Settlement Conferences; iii) Application during a bankruptcy case as part of a “Loss Mitigation” effort in front of the Bankruptcy Court; and/or iv) An unsolicited offer to modify.
2. Bankruptcy Reorganizations (Chapter 13 or Chapter 11 Plans) – Restructuring mortgage arrears during bankruptcy is permitted by Chapter 13 bankruptcy reorganizations (used for the average homeowner) and Chapter 11 bankruptcy reorganizations (used for larger debt amounts), subject to the Bankruptcy Court’s approval of the plans. When it comes to mortgage arrears, Chapters 13 or 11 offer two primary sorts of plans: In the case of Chapter 13, this would take place over a period of five years; in the case of Chapter 11, it might take longer; or ii) a “Loss Mitigation” plan that looks for a mortgage in order to catch up with the arrears. When a loan modification is a component of a larger bankruptcy case, it provides many benefits under bankruptcy law and process. These benefits include an automatic stay that halts all creditor collection actions, such as foreclosure sales, and organized supervision and meetings by the bankruptcy court.
3. Friendly Sales and/or Short Sales – tThese sales are voluntary and are made to a friendly party. If the homeowner’s circumstances improve, they may be able to rent the house after the sale or buy it back at a predetermined price. The property still has equity over the mortgage debt in a standard sale, therefore the lender’s special approval is not required as long as they receive their payment amount at closing. The mortgage balance in a short sale is greater than the house’s fair market value, so in order to sell the property, the homeowner and any prospective buyer must get the lender to agree to lower the payback amount to something more reasonable given the property’s value and the price at which the property must be sold.
4. Payoff / Short Payoff – The “Payoff” amount is the total amount due on the mortgage, plus any arrears, which includes taxes, interest, legal fees, and other expenses. A payment that is recognized by the lender as complete fulfillment of the outstanding balance but is less than the entire repayment amount is known as a short payout. The situation with the lender can be resolved with a payoff, even if it is small, because the lender will usually accept these monies in exchange for the discharge of any foreclosure action and full satisfaction. Even though this is a fairly straightforward approach, it is rarely employed because most homeowners who are having mortgage difficulties do not have easy access to capital.
5. Reinstatement / Short Reinstatement – Only the amount in default needs to be paid; if this were to happen, the mortgage problems that might cause a foreclosure would be resolved. All past-due mortgage installment payments, including principal, interest, and escrow for real estate taxes and insurance, are included in the reinstatement. A “short reinstatement” refers to a discussion in which the full sum past due is not paid in full but rather a portion of it.
6. Refinance – The borrower looks for a new mortgage loan to replace the previous one so that they are current on both loans, either on their own or in conjunction with friends or family.
7. Forbearance – The borrower promises to typically cure the arrears over time while resuming the regular monthly mortgage installment payments, and the lender agrees not to foreclose based on several months of arrears.

Mortgage Modifications – In General

Although the negotiations can be prolonged and difficult, Mortgage Modifications can help homeowners to make their mortgages more affordable.

These days, mortgage modification agreements are a great choice for a large number of our clients who are having financial difficulties as a result of mortgage arrears. Many of our clients have fallen behind on their monthly mortgage payments due to the present state of the economy. A customer must demonstrate “hardship” in order to be eligible for a mortgage modification agreement, but they must also demonstrate financial stability in order to continue making mortgage payments when they do receive a possible modification. Numerous elements play a significant role in assisting a client in achieving this kind of resolution, such as their debt-to-income ratio; the ratio of their housing payment to their total expenses; the amount of mortgage arrears; whether they have previously been offered or received a modification; the number of times they have applied for a loan modification; the amount of their previous monthly mortgage payment and whether a modification would have allowed them to pay less; the value of their home relative to the mortgage balance; and the amount of interest charged under the loan, as well as whether the terms and rate are high or low in comparison to current market rates.

Since the 2008–2014 recession, which was caused by excessively aggressive mortgage lending and borrowing, mortgage modifications have become more and more sought after and accessible. Numerous foreclosures and unresolved mortgage issues are remnants of the last recession that we are now experiencing. Even though the economy has significantly improved since then, the Covid-19 lockdowns, furloughs, and layoffs caused a serious setback. To their dismay, a large number of homeowners have become in arrears on their mortgages during this unrest, and many are either facing foreclosure or are in danger of it. Although this crisis has put many homeowners in dire financial straits, it has also put pressure on mortgage lenders and the federal and state governments to come up with better answers to this issue. Seeking a mortgage modification or other negotiated solution with one’s mortgage lender is a major component of this kind of solution.

History of Modifications: From HAMP to “In House” Modifications

The federal government implemented a voluntary initiative to encourage mortgage lenders to modify mortgages for “at risk homeowners” under laws passed in February 2009. Homeowners might apply to their mortgage lender to modify the conditions of their loan under the Home Affordable Modification Program (“HAMP”). Mortgage lenders were not obligated to reduce the loan principal; instead, they might cut the monthly payment by extending the loan term and lowering the interest rate. A portion of the initial legislative ideas, which were rejected by the Senate, was legislation that would have given bankruptcy judges the authority to order a mortgage modification in the event that a mortgage lender rejected legitimate requests for one. Currently, a mortgage lender has the right to reject, decline, or not get back to a borrower regarding loan modifications, which are completely voluntary.

The homeowner had to be deemed “at risk” under HAMP for experiencing severe hardship, which included either a loss of income, an increase in spending, or “payment shock” (resulting from noticeably higher mortgage payments). As of June 2012, the HAMP program’s basic requirements—that the loan be a first lien and that the residence be occupied by the owner—had been changed for a large number of loans. Second mortgages and equity loans did not disqualify borrowers. There has to be a default on the debt or an impending default. Borrowers had to meet the requirements regardless of whether they were late. had sufficient revenue to cover the adjusted payments. Lenders would have reduced interest rates to as low as 2% and, if needed, extended the loan term up to 40 years in order to reduce mortgage payments that exceeded 31% of gross income. The federal government would provide financial incentives to mortgage servicers who reduced their mortgage payments in exchange for making the loan modification.

Although the HAMP program came to an end on December 31, 2016, lenders were encouraged to extend their own, more controllable “in-house” modification schemes because of its inspiration. The mortgage arrears and the remaining principal balance would be combined under the HAMP and “in-house” modification programs. The interest rate would also be lowered and the loan term would be extended, resulting in a larger loan with lower monthly payments. Due to the fact that the HAMP program ended at the end of 2016 and was mostly replaced by the system of non -HAMP private bank modifications, which are available from practically all large lending institutions; borrowers are no longer need to undergo an initial screening process for a possible HAMP modification; the in-house modification is only taken into consideration if the borrower is deemed ineligible for HAMP. These days, the only alternatives for modifications are those that the specific lender offers “in-house.”

The HAMP program started off with modest loan rates of 2-3% and gradually increased them, but despite the benefits of financial subsidies and government monitoring, it became bogged down in additional rules, paperwork, and administrative layers. In many respects, the current non-HAMP, private “in-house” adjustments are speedier and more straightforward in certain situations, but they do not have the federal government oversight that the HAMP process offered in certain situations. But as the HAMP program came to an end at the end of 2016, the number of Chapter 13 and 11 bankruptcy cases in the bankruptcy courts increased.highlighting “loss mitigation” plans as a key component of their reorganizations; these bankruptcy cases with a focus on “loss mitigation” gave the modification process judicial monitoring. Many more homes are anticipated to fall behind on their mortgages due to the new circumstances brought about by the Covid-19 economic slump. New and additional government and private initiatives may be required to combat a potential new foreclosure crisis that may require novel solutions.

Our Method in Seeking a Mortgage Modification and/or Other Retention Option Agreement

Many homeowners in Brooklyn’s Suffolk and Nassau Counties who are having trouble making their mortgage payments are hiring mortgage modification lawyers like the Law Office of Ronald D. Weiss, P.C. to handle what has turned into an intricate and frequently challenging negotiation process in order to seek representation in their quest for a mortgage modification and/or other retention option. While negotiating mortgage modifications and/or other retention options is ultimately a very worthwhile endeavor, the process can be challenging and unpredictable due to the fact that many mortgage holders and their attorneys are not amenable to negotiated offers, necessitating a substantial and ongoing effort that requires careful strategy and planning. Since we usually take into account several foreclosure solution, we employ a more comprehensive strategy to mortgage and foreclosure solutions in order to assist our clients. We are not only reliant on mortgage modifications. Resolving mortgage issues and getting better mortgage terms is a very important goal, even though this procedure is typically time-consuming and fraught with complications. For the following reasons, the customer should have our office represent them in order to optimize their negotiation advantages:

• As attorneys providing foreclosure solutions, we take a wider approach. In order to reach an agreement, we can use our skills and knowledge to defend and safeguard you in a foreclosure. We know how to approach your lender and their lawyers, have more clout with them, and can negotiate a better deal.
• We are reasonably priced. Examine us in relation to others. We price less, even if our credentials in this field far surpass those of our competitors.
• We don’t give up easily. Your mortgage holder was probably not going to provide an agreement if we are unable to get one that meets your needs.
• We are Local and Responsive.We are local and can meet your special demands, unlike the national services that are requesting this work on a large scale and handling files that need personalized attention impersonally.
• Our Advice is Straightforward. Although we are really good at what we do, we don’t claim to be successful all the time. We will be able to represent you and offer you advice on alternative foreclosure options if we are unable to come to a mutually agreeable settlement.

If you are overwhelmed with a problematic mortgage, the Law Firm of Ronald D. Weiss, P.C. can represent you in seeking a mortgage modification and/or other retention options.
For more specific information about Mortgage Modifications, click here.

In order for modifications and/or other retention options to be successful, the client must hire a qualified professional to work on their behalf and launch a determined effort to persuade the lender to modify a specific mortgage loan through applications, letters, calls, and supporting documentation.

How Our Law Office Can Help You in Negotiating a Modification and/or Other Retention Options

TThousands of agreements have been arranged by The Law Firm of Ronald D. Weiss, P.C., allowing its clients to settle their mortgage arrears. Our customers have been able to avoid foreclosure and save their homes thanks to the numerous mortgage modification agreements, forbearance agreements, payment plans, short sales, deed in lieu agreements, and other settlements that we have arranged. Enabling us to act as your representative and bargain on your behalf guarantees a timely completion of the foreclosure procedure. In order to ensure that your rights are always upheld, it is also essential that the settlement conditions be agreed upon in a legally enforceable written stipulation of settlement.

Our consultations are free, the advice may be invaluable.

Please call us at (631) 271-3737, or e-mail us at [email protected]for a complimentary appointment to go over these negotiating and adjustment options in more depth.