Loan Modifications

Application for Mortgage Loan Modification

Things in people’s lives change. Sometimes a family’s financial situation improves and sometimes it goes downhill. If you are facing a problem making your mortgage payments it is highly recommended that you pursue a loan modification. A mortgage loan modification is an agreement between the financial institution and the homeowner to change the terms of the mortgage loan. Loan modifications can provide homeowners with lower interest rates and changes in the monthly mortgage payments.

Financial Difficulties

Should you be having financial difficulties, if you are downsized, or if you have lost your employment, modifying your mortgage loan may be the best way to save your home from falling into foreclosure. A loan modification may keep you and your family secure in your home.

What Loan Modification Can Accomplish

Loan modifications can extend your payment terms, remove late fees and reduce your mortgage payments. If you have a mortgage where interest rates have been continually going up causing your mortgage payments to increase, it may be possible to obtain a fixed rate mortgage when you modify the loan. An experienced foreclosure defense law firm will be able to assist you with regard to applying for a mortgage modification. They can help you develop the appropriate hardship letter as well as see to it that you are not jerked around by the processing company for your financial institution. Dealing with the application for a mortgage modification can at times be a frustrating process where the mortgage loan processor repeatedly requests the same documents again and again even after you’ve provided them.

Attorney Elliot Schlissel Elliot S. Schlissel is a partner in the law firm of Schlissel DeCorpo LLP a well known foreclosure defense law firm that has been representing homeowners throughout the Metropolitan New York area for more than 3 decades. He can be reached for a free consultation at or at 800-344-6431. The firm maintains offices in Nassau, Suffolk and Queens Counties in the State of New York.

Loan Modifications: What Are They Really? Part: 2

Dollar BillsThe first step in obtaining a mortgage modification is for the homeowner to apply to their bank, loan servicing organization or the investor holding their mortgage for a modification. This requires the homeowner to fill out a mortgage modification application and provide the documentation requested. The modification should also contain a hardship letter explaining that the homeowner has had a legitimate hardship situation that will motivate the bank loan servicer or investor to cooperate with them concerning obtaining a mortgage modification. In addition, most mortgage modification applications require the submission of tax returns, bank statements and pay stubs by the homeowner.

Home Affordable Mortgage Program (HAMP)

The federal mortgage lending program called HAMP is a program created by President Obama’s administration. This program does not work well. Approximately one homeowner in five is successful in obtaining a mortgage modification under this program. Many homeowners presume that they will be given a mortgage modification if they simply submit an application. This is simply not the case. The large majority of homeowners who submit mortgage modifications will never obtain a mortgage modification.

Banks and Financial Institutions

Many homeowners who come to my office presume that the financial institutions which hold their mortgages are interested in helping them. Unfortunately, that is generally not the case. The financial institutions which hold mortgages are interested in making money! If they find the homeowner does not meet their criteria related to the profitability of the mortgage, they usually will not grant a mortgage modification. Banks and other financial institutions are not social service agencies. They are financial institutions which seek to make a profit that benefits their shareholders. Not all homeowners are good candidates for mortgage modifications. However, there is a way of maximizing the potential of obtaining a mortgage modification. When homes are in foreclosure, and the homeowner retains counsel who submits numerous affirmative defenses and countersues the bank to set the mortgage aside, the banks and their attorneys pay more attention to the applications of these homeowners for modifications. This can increase the homeowners chances of obtaining a reasonable and fair mortgage modification. This is an example of the expression, “the squeaky wheel gets more grease.”

Loan Modifications: What Are They Really? Part 1

An Hour GlassA loan modification can be defined as an agreement between a homeowner and a financial institution that changes the terms of the original mortgage loan. Homeowners who have fallen behind on their mortgage payments or who are having financial difficulties should seek to modify their mortgage loan for the purpose of obtaining a reduction of their mortgage payments that fits into their financial circumstances. It should be noted that a loan modification application does not stop a foreclosure lawsuit from moving forward. Whenever a homeowner is sued in a foreclosure lawsuit they must file a written Answer to the Summons and Complaint with the court and with opposing counsel within twenty days if served personally and thirty days if served by any other means. Failure to submit an Answer, even if a mortgage modification application is submitted, is considered a default and an admission of the allegations in the lawsuit which allows the lawsuit to move forward unopposed.

Various Mortgage Modifications

There are a variety of ways in which a mortgage can be modified. Examples of the types of manners in which a mortgage can be modified are as follows:

  1. The interest rate can be reduced.
  2. Payment terms, which are usually over a thirty year period, can be extended to as long as forty years.
  3. The arrears on the mortgage can be placed at the end of the mortgage and the payment terms extended by the amount of months in which payments were missed.
  4. Penalties and attorneys fees concerning the mortgage can be waived.
  5. Interest and late fees concerning the mortgage payments can be waived.
  6. An adjustable rate mortgage can be converted to a conventional mortgage.
  7. An adjustable rate mortgage can be converted into an interest only mortgage or a fixed rate mortgage.

All of the aforementioned ways of modifying a mortgage can be used individually or in combination with each other to create a lower cost, more affordable, monthly mortgage payment for the beleaguered homeowner.

Elliot S. Schlissel is a foreclosure attorney representing homeowners throughout the New York Metropolitain area.

Foreclosure Defense in Valley Stream, Lynbrook, Baldwin, Malverne, Freeport, Oceanside, Long Beach, Elmont, Lakeview, West Hempstead, Hempstead, Merrick and Bellmore, New York

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The information you obtain at this website is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your particular legal issue. This is attorney advertising.

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