A loan modification is a permanent change in one or more terms of a borrowers home loan, allows the loan to be reinstated, and results in a payment the homeowner can afford.

1. The Law Office Of
John M.Crane
PortChester, Queens, White Plains, New York
Disclaimer:
The tips in this presentation are general in nature. Please use
your discretion while following them. www.johncranebankruptcy.com
PortChester: (914) 481-3450

3. What is the difference between a loan modification and a
forbearance agreement?
A loan modification is a permanent
change in one or more terms of a
borrower's home loan, allows the loan
to be reinstated, and results in a
payment the homeowner can afford.
A forbearance agreement is a
temporary solution where the lender
agrees to do or not do something that
they are legally entitled to do.
Examples are no payments made for six
months, accepting interest only
payments for a period of time or the
lender agreeing not to foreclose while
the borrower attempts to sell the
home.
www.johncranebankruptcy.com
Portchester: (914) 481-3450

5. Can the lender include late charges in the Loan Modification?
The federal plan under the
Obama Administration,
Making Home Affordable,
mandates that the bank
waive any administrative
charges, late fees and
penalties when offering a
loan workout.
www.johncranebankruptcy.com
Portchester: (914) 481-3450

7. How will the Making Home Affordable Plan help me get a loan
modification?
This plan allocates $75 billion
dollars and this money is used
to subsidize lenders and loan
servicers that agree to offer loan
modifications to their clients.
Thus, it gives lenders a financial
incentive to help to qualified
borrowers. In addition,
homeowners who pay their new
modified payments on time may
be eligible up to $5000 credit to
their loan balance.
www.johncranebankruptcy.com
Portchester: (914) 481-3450

9. How do I know if I will qualify for a loan modification?
You don’t! There is no guarantee that
the bank will modify your loan and
anyone that tells you they guarantee
results are lying! However, the primary
criteria your lender will look at will be
your ability to pay new modified
payment. If you provide proof of
income, expenses and proof that
whatever hardship you encountered
has been addressed (you either have
increased your income or reduced your
expenses), then you stand a very good
chance of having your loan modified.
www.johncranebankruptcy.com
Portchester: (914) 481-3450

11. I have to be currently delinquent on my payments to get a loan
modification?
Under the Making Home
Affordable Modification Plan,
the federal government will pay
lenders an extra bonus for
reaching out to those
homeowners that are current,
but at risk of becoming
delinquent in the future. This
will help stabilize our economy
as borrowers are given
assistance before they default
on their loans, hopefully
preventing future foreclosures.
www.johncranebankruptcy.com
Portchester: (914) 481-3450

13. What is an acceptable Hardship situation?
There is no one answer. Because every
person is unique, each homeowner has
a unique set of circumstances.
Generally, lenders consider divorce,
marital separation, loss of
employment, death of spouse, co-
borrower or family member, illness, job
relocation, and/or military service to
be acceptable reasons to consider a
loan modification. By including a
serious, detailed hardship letter as part
of your modification application, the
lender is given the documentation
necessary to learn about your specific
circumstances.
www.johncranebankruptcy.com
Portchester: (914) 481-3450

14. 342 North Main Street, PortChester, NY 10573
Phone No: (914) 481-3450
www.johncranebankruptcy.com