• Bankruptcy Solutions
• Foreclosure Solutions
• Modification & Negotiation
• Credit Card Debt Relief

Queens 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 people going through serious mortgage hardships because most people are looking for “Retention Options,” or ways to resolve their mortgage problems so they can keep their homes rather than lose them.homeowners facing foreclosure. By incorporating our clients’ mortgage arrears into the remaining mortgage principal balance and increasing the loan’s principal, mortgage modifications aim to prevent foreclosures by eradicating the amount in default. 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 – resolve the mortgage default issue immediately by taking on the mortgage’s arrears and forcing the homeowner to make loan payments on time; AND,

2) Affordable Payments – provide an affordable monthly mortgage payment as a workable future alternative, which should prevent the homeowner from defaulting in the future.

Right now, homeowners looking to cure mortgage arrears, end foreclosure proceedings, and keep their homes are finding that the mortgage loan modification is the most popular and effective choice. 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 Retention are 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. Retention options for the property, especially Mortgage Modification, will be discussed in this Section and enumerated below. Retention Options include the following:

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, there are two possible options: (i) a traditional or “catch-up” plan that aims to cure arrears within a plan that aims to catch up with the arrears, over a period of five years; (ii) a “Loss Mitigation” plan that seeks a Mortgage Loan Modification as part of an overall bankruptcy case that gives several advantages under bankruptcy law and procedure, especially the Bankruptcy Court’s organized supervision and sessions and an automatic stay that halts all creditor collection activities, including foreclosure sales.
3. Friendly Sales and/or Short Sales – They are voluntary sales to a friendly buyer who may permit the homeowner to rent the house following the sale or, should the homeowner’s finances improve, to repurchase it 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 amount of their mortgage arrears, the ratio of their housing payment to total expenses, whether they haveWhether or not they have previously been offered or received a modification; the number of times they have applied for a loan modification; their previous monthly mortgage payment and whether or not a modification allowed for a lower payment; the value of their home relative to the mortgage balance; and the amount of interest charged under the loan, as well as whether or not 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. In this chaos, numerous To their dismay, homeowners have discovered that they are behind on their mortgage payments, facing foreclosure, or are even in danger of doing so. Although this issue has put many homeowners in a tough financial situation, it has also put pressure on mortgage lenders and the federal and state governments to come up with better solutions. 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”). Interest rates could be cut and the loan term could be extended to reduce the monthly payment; mortgage lenders were not obligated to drop the loan’s principle. A provision that would have allowed bankruptcy judges to order a mortgage modification in the event that a mortgage lender rejected reasonable requests for one was included in the original legislation for this measure, which was not approved by the Senate. 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. The loan had to be received by either in default or about to default. No matter if they were in arrears or not, borrowers had to be able to afford 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 HAMP program’s expiration at the end of 2016 and its major replacement by the non-resident Borrowers are no longer need to undergo an initial screening process for a potential HAMP modification; if they are not eligible for HAMP, an in-house modification will only be taken into consideration. HAMP private bank modifications are offered by nearly all major lending institutions. 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 Queens’ 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. Although negotiating mortgage modifications and/or other retention options is a very worthwhile goal in the end, it can be challenging and uncertain because many mortgage holders and their attorneys are not responsive enough to negotiated offers, necessitating a substantial and persistent amount of effort. endeavor that calls for meticulous preparation and strategy. We employ a more comprehensive approach to mortgage and foreclosure solutions in order to assist our clients, and we are not only reliant on mortgage modifications. We are always exploring several foreclosure options. 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:

• We have a Broader Approach as Attorneys for Foreclosure Solutions. 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 Affordable. Examine us in relation to others. We price less, even if our credentials in this field far surpass those of our competitors.
• We are Persistent. 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

Thousands of agreements have been arranged by The Law Firm of Ronald D. Weiss, P.C., providing its clients with the chance 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.