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Filing for a Loan Modification in New York

July 15th, 2014

In today’s economy many people are struggling to make their mortgage payments and are at risk of losing their home to foreclosure.  If you are facing foreclosure, you might qualify for a Long Island loan modification.

A loan modification is a change in the terms of the borrower’s loan.  This will result in a payment that the borrower can afford.  These terms can include an adjustment of the interest rate or the term’s duration.

So, what needs to be done file for a Long Island loan modification?  First, get started as quickly as possible.  If you feel as though your mortgage will go into default, you should speak with a home loan modification attorney.  He can help you understand the process and decide if it is the best option for you.

The process of filing for a loan modification can be long, difficult and confusing.  A loan modification attorney in NY can help you get through the process easily.  He will provide a better understanding of the laws in New York and help you avoid foreclosure.

Types of Loan Modifications

There are many types of loan modifications in NY.  These include forbearance, interest rate reduction, loan extension, partial claim and more.

Forbearance is when the lender temporarily suspends payments for the borrower.  This will help them get through the financial hardships they are currently experiencing.  However, unlike other loan modifications, at the end of the forbearance period borrowers are expected make full payment on the loan.

Interest rate reduction is when the lender agrees to reduce the rate on the loan.  This can be done either temporarily or permanently.

During a loan extension, the lender agrees to lengthen the repayment period.  This will lower monthly payments and help the borrower avoid foreclosure.

A partial claim is for FHA insured loans.  This claim is for borrowers who are delinquent on their loan for at least four months.  If you are filing for a partial claim, you must prove that you experienced financial hardship and that you are now able to make the full mortgage payment.

There are many other types of loan modifications in New York.  If you are seeking a loan modification to help you avoid foreclosure, contact a loan modification lawyer in New York, such as Darren Aronow, P.C.  He will be able to go through your case and determine if a Long Island loan modification is best for you.  He will also be able to provide more information on the different loan modification types.

Contact the Law Office of Darren Aronow, P.C. today to schedule a free consultation.

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