Affordable Loan Modification Lawyers NYC | John M. Crane, P.C.


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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.

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Affordable Loan Modification Lawyers NYC | John M. Crane, P.C.

  1. 1. The Law Office Of John M.CranePortChester, Queens, White Plains, New YorkDisclaimer:The tips in this presentation are general in nature. Please useyour discretion while following them. PortChester: (914) 481-3450
  2. 2. What is the difference between a loan modification and a forbearance agreement?A loan modification is a permanentchange in one or more terms of aborrowers home loan, allows the loanto be reinstated, and results in apayment the homeowner can afford.A forbearance agreement is atemporary solution where the lenderagrees to do or not do something thatthey are legally entitled to do.Examples are no payments made for sixmonths, accepting interest onlypayments for a period of time or thelender agreeing not to foreclose whilethe borrower attempts to sell thehome. Portchester: (914) 481-3450
  3. 3. Can the lender include late charges in the Loan Modification?The federal plan under theObama Administration,Making Home Affordable,mandates that the bankwaive any administrativecharges, late fees andpenalties when offering aloan workout. Portchester: (914) 481-3450
  4. 4. How will the Making Home Affordable Plan help me get a loan modification?This plan allocates $75 billiondollars and this money is usedto subsidize lenders and loanservicers that agree to offer loanmodifications to their clients.Thus, it gives lenders a financialincentive to help to qualifiedborrowers. In addition,homeowners who pay their newmodified payments on time maybe eligible up to $5000 credit totheir loan balance. Portchester: (914) 481-3450
  5. 5. How do I know if I will qualify for a loan modification?You don’t! There is no guarantee thatthe bank will modify your loan andanyone that tells you they guaranteeresults are lying! However, the primarycriteria your lender will look at will beyour ability to pay new modifiedpayment. If you provide proof ofincome, expenses and proof thatwhatever hardship you encounteredhas been addressed (you either haveincreased your income or reduced yourexpenses), then you stand a very goodchance of having your loan modified. Portchester: (914) 481-3450
  6. 6. I have to be currently delinquent on my payments to get a loan modification?Under the Making HomeAffordable Modification Plan,the federal government will paylenders an extra bonus forreaching out to thosehomeowners that are current,but at risk of becomingdelinquent in the future. Thiswill help stabilize our economyas borrowers are givenassistance before they defaulton their loans, hopefullypreventing future foreclosures. Portchester: (914) 481-3450
  7. 7. What is an acceptable Hardship situation?There is no one answer. Because everyperson is unique, each homeowner hasa unique set of circumstances.Generally, lenders consider divorce,marital separation, loss ofemployment, death of spouse, co-borrower or family member, illness, jobrelocation, and/or military service tobe acceptable reasons to consider aloan modification. By including aserious, detailed hardship letter as partof your modification application, thelender is given the documentationnecessary to learn about your specificcircumstances. Portchester: (914) 481-3450
  8. 8. 342 North Main Street, PortChester, NY 10573 Phone No: (914) 481-3450