Loan Modification In New York: Restrictions and Denials
by Steve Son Marketing RepresentativeLoan modification basically refers to a new agreement
with the lender seeking changes in previous terms and conditions for affordable
repayment. It is an addendum to the original loan having a purpose for avoiding
foreclosure in case of financial struggling or inability to keep up repayment
options. This process is also beneficial for lenders in some cases as
government provides incentives to them on being agreed to loan modification. The expiration of the federal Home Affordable Modification Program
brings relief for struggling borrowers in terms of financial hardships. Loan Modification In New York is defined as a sacrifice of
any sort of material term. Whatever term the loan may have, modification
changes several factors including interest rate while forgiving principal
payment. At the same time, it extends the final maturity date of the loan as
well. Borrowers need to go through the modification rules properly with a good
effort. Banking regulations are as follows:
1.
The borrower should have a prominent proof due to severe financial crisis.
2.
The probable income during the period of the modified loan is greater than the
value the home would bring in a foreclosure sale.
3. The borrower needs to show some assets like the
home has to be own.
4. The home should be payee’s primary
residence.
The payee has to submit a prayer for loan
modification describing the actual reasons for this and the lender will ask for
documents such as Income tax documents, bank statements, pay slip and other
supporting papers. The lender has to reply within one month after receiving of applicants’
documents and shall inform about the contact person with telephone no to handle
the loan modification process with a Bankruptcy Attorney Brooklyn NY. The payee
shall have all rights to get detailed status information about the mortgage
account. In
case the lender/bank do not entertain the application of loan modification and
statistically in most cases in New York it happens. As per the rule the lender
will look into the following matter for denial.
1.
Whether the payees are spending 29% of monthly income for mortgage repayment.
2.
With an existing loan modification term, the payee is applying for re-
modification of the same.
3.
The payee is willingly trying to prove his incapability towards affordable
payments on the existing mortgage
In case of denial from lender for loan modification
the payee may seek for short sale of assets or bankruptcy. It is to be noted
that if residence without share was shown under mortgage, it may be used to
remove chance of second mortgage according to rule chapter 13 of bankruptcy.
It is advised to get in touch with Affordable legal counselling Attorney
Brooklyn NY to deal with the matter of loan modification. Any agency who claims
advance fees to settle up, should be avoided as New York authority prohibits on
claiming upfront fee before providing any legal service. Law office Coney Island Brooklyn NY ensures
that there are certain paths to the collection of the upfront money. In terms
of going for a loan modification program the borrower needs to give the fee in
terms of refinance which is completely different term.
Law
Offices of Mark Bratkovsky, PC
(718)
891-0564
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Created on Apr 22nd 2020 10:19. Viewed 323 times.