Purchasing a home is a large part of the “American Dream.” Unfortunately, the payments on a home don’t stop for decades after the down payment is made. During a typical 30-year mortgage period, families may find themselves facing serious financial hardships and can no longer afford to pay their mortgages. At the Law Offices of David M. Katz, we completely understand that missing mortgage payments can leave a family worrying about what will happen to their home. Our skilled legal team is here to help. We will explore all means of foreclosure defense, including loss mitigation to help make your mortgage payments more manageable. Contact the Law Offices of David M. Katz today to learn how a Rockland County foreclosure lawyer can help.
What is loss mitigation?
If a homeowner misses one or more mortgage payments, the lending company will typically send notices to inform the individual of the potential foreclosure he may face if he does not take action quickly. Loss mitigation is one solution to foreclosure, in which a lending company and a homeowner will work together to lower the payments. If your mortgage payments are delinquent for 45 days, federal mortgage servicing laws require the lender to appoint loss mitigation help to the borrower. The lender must have the ability to provide information about the following:
- Loss mitigation programs that may be available
- How to submit a complete loss mitigation
- Understanding the status of your submitted loss mitigation application
- How to appeal your application if it is denied
What documents do I need for the loss mitigation application?
In the loss mitigation program, the bank is required to review your financial ability to determine if you are eligible for a modification. To determine your eligibility, your lender will request a number of different documents, including:
- Financial statements
- Personal or business bank statements
- Personal or business tax returns
- Paystubs from each wage earner in your household
- A current utility bill that provides proof that you live in the home
- A hardship letter explaining why you cannot keep up with the mortgage payments
Are there alternatives to the loss mitigation program?
Loss mitigation is an umbrella term for several solutions to foreclosure. Some of the other options that you may wish to take into consideration if you cannot keep up with your mortgage include the following:
- Loan modification
- Mortgage refinancing
- Surrender of the property in full satisfaction
- Short sale
- A combination of the methods listed above
Have More Questions? We Have Answers!
Our firm is dedicated to providing you with the tools to make informed decisions about your future. We are ready to represent you, but if you’re just looking for some answers to your pressing questions:
If you can’t find what you are looking for, feel free to contact us about your legal matter. Regardless of how dire things look, we may be able to help!
Contact a Rockland County Foreclosure Defense Lawyer Today
The Law Offices of David M. Katz proudly represented clients across the Hudson Valley, working closely to prevent foreclosure and save people’s homes. We will do all that we can to help you and your family keep the home you worked so hard for. Our skilled legal team will ensure that you fully understand all of your options and can help you move forward on the best path for your situation. If you are falling behind on mortgage payments, please do not hesitate to call our firm. The sooner you speak with a foreclosure defense lawyer, the better. Contact a Rockland County loss mitigation lawyer at the Law Offices of David M. Katz today.