Mortgage Modification:Examining Your Options For Avoiding Foreclosure

Mortgage ModificationWhile the worst appears to be behind us with regard to the housing market meltdown that began in the late 00s, many homeowners continue to struggle with meeting their mortgage requirements, particularly those who received subprime or high interest rate loans. The national foreclosure rate has been in decline for 35 months, but foreclosures in many states, including New York, remain problematic.

A mortgage modification can help homeowners avoid foreclosure, allowing them to renegotiate the terms of their loans with bankers to make it easier for them to meet their mortgage obligations. An experienced mortgage modification attorney can help homeowners obtain a mortgage modification, particularly if those homeowners are already in bankruptcy.

What A Mortgage Modification Can Do

Mortgage modifications can provide relief to homeowners by:• Cutting interest rates.• Changing the interest rate from a floating rate to a fixed

rate, or alter how the floating rate is calculated.• Reducing the loan’s principal.• Reducing the severity or eliminate late fees and penalties.• Lengthening the term of the loan.• Imposing income-based repayment terms, capping

mortgage payments to a percentage of income• Forbearing mortgage payments

How An Attorney Can HelpA skilled mortgage modification attorney can help homeowners negotiate a mortgage modification that best protects their interests. Experienced loan modification attorneys can help homeowners negotiate lower interest rates, reduced principal and other terms likely to give the homeowner the financial breathing space he or she needs to meet monthly mortgage payment requirements.

850,000 Mortgage Modifications In 2012

Mortgage modifications hit their high point in 2011, when more than a million homeowners obtained mortgage modifications. In 2012, about 850,000 mortgage modifications were completed, with most being proprietary modifications and about 190,000 being processed through the Home Affordable Modification Program.

HAMPHAMP is a federally-sponsored program that is available to homeowners through 2015. A mortgage modification attorney can help you determine whether you are eligible for a HAMP modification and get the ball rolling in pursuing this modification if you are.

What You’ll Need To ProvideCooperating with your attorney is essential to securing a mortgage modification. Some things you’ll need to provide your attorney with include:

• Copies of your last two tax returns.• Copies of your last two W-2 forms.• Other requested information regarding your income.• A letter explaining your financial situation.

When Hiring A Mortgage Modification Attorney

When hiring a mortgage modification attorney, be sure to research your options. Ask prospective attorneys about their experience in bankruptcy, foreclosure and mortgage modification. Ask friends and co-workers who have had to obtain mortgage modifications about their experiences with attorneys. Also do a Google search of the attorney you’re considering working with to find more information about his or her practice.

About Ronald D. Weiss P.C., Attorney at Law

Ronald D. Weiss P.C., Attorney at Law is a Long Island law firm specializing in bankruptcy, mortgage modification and similar practice areas. Founded in 1993, the firm has helped countless clients protect their homes in hard times. For more information visit http://www.nybankruptcy.com.