Modification and Negotiation Solutions

All debts, especially mortgage loans, credit cards, personal loans and taxes, can be negotiated and settled.

The Law Office of Ronald D. Weiss, P.C. is frequently retained by its clients to engage in negotiations with banks, mortgage holders, credit cards, car financing companies, landlords and other creditors. Mortgage Modifications are particularly a concentration of our office because of the many individuals undergoing hardships with their mortgages. The availability of HAMP and other programs to help us obtain relief for our clients, give us the necessary tools to pursue a mortgage modification. Because of the firm’s long experience with creditor negotiations, and because of the firm’s specific expertise with matters that pertain to debtor-creditor relations, the client’s ability to succeed in negotiating with their creditors is enhanced through our representation. Our firm will advise its clients as to what matters can be negotiated and to what extent their creditors may accept certain offers. Our firm will write and call the creditors, persist in trying to get a resolution to the advantage of the client, and keep the client informed as to the progress with these matters. Upon a resolution, our firm will enter into a written stipulation of settlement with the creditor and require that other documents be prepared that show that the matter has been settled.  We are frequently negotiating the following debts for our clients:

a) Mortgage Modifications – are intended to prevent foreclosures by reducing our client’s monthly mortgage obligations and absorbing our clients’ mortgage arrears. More information is available about Mortgage Modifications below.

b) Credit Card Negotiations – are intended to reduce the overall obligations for credit cards or other unsecured loans by offering a lump sum or a payment plan at a reduced amount to resolve such obligations.

c) Tax Debt Negotiations – are intended to reduce or extend the obligations to pay federal, state or local taxes through negotiations which either offer a lump sum or a payment plan.

d) Other Negotiated Solutions to Mortgage Difficulties – Other potential solutions to mortgage difficulties are: (i) short sales, where the lender allows a house to be sold for less than the full mortgage payoff, (ii) voluntary sales, where the homeowner succeeds in having another person, who is often friendly with the homeowner, buy the house, (iii) refinancing, where a homeowner with significant equity in their house and improved income, can potentially refinance, and (iv) deed-in lieu agreements, to allow a homeowner to give the lender their deed in return for forgiveness of the mortgage debt and the avoidance of a deficiency judgement.

Mortgage  Modifications

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

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.

Mortgage modification have been especially sought after and increasingly obtainable in the last few years because of the continuing foreclosure crisis in the United States. This crisis started several years ago due to many factors: overly aggressive lending and borrowing, a rapidly rising and rapidly falling real estate market, sub-prime loans, 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. While this crisis has created much financial difficulty for many homeowners, it has also created pressure on mortgage lenders and federal and state governments to find better solutions to this problem. A large part of such solution is the potential to seek a mortgage modification or other negotiated solution with one’s mortgage lender.

How Our Law Office Can Help You in Negotiating a Modification

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.

Our consultations are free, the advice may be invaluable.

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.

Our Method in Seeking a Mortgage Modification

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 have a Broader Approach as 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.
  • We are Persistent. If we cannot obtain an agreement acceptable to you, such agreement was probably not going to be forthcoming from your mortgage holder.
  • We are 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.
  • Our Advice is Straightforward. 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.

For more specific information about Mortgage Modifications, click here.

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). Although initially the program required that the  loan must be a 1st lien and the home must be owner occupied, as of June 2012, such requirements have been modified for many loans. 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.

Please call us at (631) 479-2455, or e-mail us at weiss@ny-bankruptcy.com for a free consultation to discuss such modification and negotiation options in greater detail.