The reasons for applying for a mortgage modification have to do with reorganizing your financial obligation under your mortgage into a more affordable and more practical payment plan. If the payments on your mortgage can be reduced, modified or amended to the point you can afford to make these payments on a regular basis, you can pull your case out of a foreclosure situation.
Leverage in Mortgage Modification Negotiations
There are numerous mortgage modification programs. The granddaddy of them all is the Home Affordable Mortgage Program (HAMP) established by President Obama in his first term in office which has been extended while he is currently in office. Banks will also have their own in house mortgage modification plans. However, most banks are really not interested in giving you a mortgage modification. Most banks would rather write you off, foreclose on your home and move on to deal with customers they feel they can make money on. The large majority of homeowners who apply for mortgage modifications are turned down. Even those individuals and/or families receiving temporary mortgage modifications often are denied permanent modifications at the end of their temporary modification period. However, do not despair. There is a way of putting pressure on financial institutions to reconsider giving you a mortgage modification in the future.
Foreclosure Mediation Court Conferences
Under the law in New York, after a foreclosure lawsuit is started, the attorneys for the homeowner and the attorneys for the financial institution have to meet and negotiate, in good faith, in court at a foreclosure conference. Action can be taken utilizing the pressure of the court proceedings to reapply for a new mortgage modification even if turned down in the past.
Different Criteria for Different Lenders
No two financial institutions have the exact same requirements for mortgage modifications. The underwriting requirements vary from financial institution to financial institution.
Costs of Mortgage Modifications
There is usually no cost involved in mortgage modification programs. This means if you apply and are turned down, there are no expenses that you will have incurred. The writer firmly believes that God helps those who help themselves. If there is any possibility of obtaining a mortgage modification you should apply for one. There are all types of programs available. Some programs involve deferring significant portions of the debt and having balloon payments 20 or 30 years down the road. Applying for a mortgage modification can save your home from being taken from you in a foreclosure lawsuit.
Our law firm zealously litigates all foreclosure defense cases for our clients, however, we also negotiate in an appropriate manner with financial institutions to pull our clients out of foreclosure by having them granted mortgage modifications. Our attorneys have more than 100 years of combined legal experience. Should you have a foreclosure problem or a potential foreclosure problem, call us for a free consultation. We can be reached at 1-800-344-6431, 516-561-6645 and 718-350-2802.
