The possibility of losing your home due to financial hardship can be devastating for homeowners and their families. One method of foreclosure defense that can help a family keep their home is known as a loan modification. This option is different than refinancing a mortgage because you keep your original loan but certain payments may be reduced. If you are considering a loan modification in Rockland County, Westchester County, or anywhere in the Hudson Valley, you need strong legal guidance every step of the way. The Law Offices of David M. Katz has proudly represented clients for decades as they navigate various means of foreclosure defense. It may not be too late to get relief. We may be able to help! Contact a loan modification lawyer at our office today to explore your options.
Eligibility in New York
New York State residential foreclosure lawsuits must be assigned to the Foreclosure Settlement Conference to require the bank to review your financial situation and determine whether you are eligible for a loan modification. The lender will take a look at your financial statements, bank statements, tax returns, and utility bills to get a deeper understanding of why you are struggling to pay your mortgage. Additionally, you may wish to include a Hardship Letter, which allows you the opportunity to explain your financial situation even further.
What might be included in a loan modification?
Loan modifications come in several different forms, as not everyone’s situation is the same. A loan modification is a foreclosure defense strategy that can help you keep your home by reducing your monthly payment. Some of the aspects that may be included in a loan modification include:
- A reduction in the principal of the loan
- A reduction in your monthly payment
- A modification or reduction of the loan’s interest rate
- The elimination or reduction for late fees or non-payment penalties
- A temporary pause in payments, known as a forbearance
A reduction in your interest rate or principal can help lower your monthly mortgage payment by hundreds of dollars, making it more manageable for you to afford. If you are concerned about being able to pay your mortgage, do not hesitate to contact the Law Offices of David M. Katz today to learn how we can help.
What should I include in a hardship letter?
A hardship letter provides you with the opportunity to explain any circumstances that made it difficult for you to meet your current mortgage payment. The primary goal of a hardship letter is to explain your situation, discuss what you have done to try and remedy the issue on your own, and ask for specific assistance from your lender. Some of the examples of hardship that you may wish to disclose include the following:
- Change of employment status
- Loss of income
- Illness or injury
- Military deployment
- Other unexpected life events
Contact a Rockland County Loan Modification Attorney
The Law Offices of David M. Katz has decades of experience helping clients across the Hudson Valley navigate the loan modification process. Our foreclosure defense lawyers are here to walk you through each step of the loan modification process and if your request is denied, can help you submit an appeal. Contact a loan modification lawyer at our office today to discuss the specifics surrounding your situation.