Is it difficult to get a Loan Modification?

• 19 Jan 2022
• Loan Modification

If you’re having trouble making your monthly installments and want to prevent foreclosure, a loan modification might be able to ease your suffering in such difficult times. A loan modification is a transformation made to your current debt’s rebate conditions that might ease your periodic installments. Currently, approximately 9% of the homeowners in the U.S. are getting mortgage relief through loan modification, as per the U.S. Treasury Department.

Why? 

The reason is lack of awareness and not hiring the right attorney.

Modification in the terms and conditions of the loan is achievable if and only if you can prove your poor financial conditions to your lender. If the lender is convinced that you might not be able to pay the agreed installments, then you have a small window for a loan modification.

Let us discuss some more points about your loan mutation and how a team of loan modification lawyers Nassau, County-based experts, can assist you to revise your loan conditions.

What is loan modification?

A loan modification is a significant change made to your loan rebate by the lender. If you have descended on your installments or cannot afford the installments due to poor financial conditions, a loan modification might aid you to dodge any foreclosure. Our loan modification attorney has helped clients achieve lower interest rates, extension in the payment period, waived penalties and late fees. 

How do loan modifications work?

A lender usually holds some security in exchange for the loan. Individuals or organizations holding your security should agree to modify the terms of your mortgage. Several ways can help you achieve a loan modification, such as listed below:

• Reducing interest rates

You can reduce your interest rates by some amount; this will help you manage your monthly installments. For instance, $1,00,000 of the mortgage at a 4% rate and 3% rate for the same duration and amount can reduce your expense by approximately $100 per month. 

• Repayment period extension

You can increase the repayment period of your loan. The loan, which will be repaid in 15 years, can be extended for 5-10 years to lower the interest amount per month. It would be best to keep in mind that the total sum of interest will increase as you increase the repayment period. 

• Adjustable to fixed interest rates

Adjustable interest rates are designed with variable rates, and they vary with the market. If the average rate is increased, your interest rate will also increase. By sealing in your interest rate, you make sure that you are only bound to pay a fixed amount throughout your loan period. 

Eligibility for a loan modification

Lenders have their own set of rules for a loan modification. But in most cases, they will ask you to apply with legal financial documents for the loan modification process. It will be difficult for you to analyze financial conditions and portray the same to the lenders individually.

We offer our excellence at Radow Law Group, a team of loan modification attorneys in Nassau County, Queens, NY. Our services are available in other neighboring regions as well. Our team of lawyers helps you analyze the situation and guide you in the best possible way to apply for a loan modification. 

Some of the financial documents that you might have to showcase your lenders are

• Income proof

Income proof can consist of a salary slip or contract note from your employer stating your annual income. In the case of self-employment, you will be asked to show the profit and loss statements.  

• Latest tax return

The tax return is another financial document your lender might ask to verify your income proof and other documents. 

• Bank statements

Lenders usually request your bank passbook to confirm your acquisitions and income balance. 

• Hardship letter

The letter of hardship is to the lender stating the reason for your loan mutation application. You need to clearly explain why you cannot pay the mortgage with your current income. To make your application stronger, you can also attach documents. Sack letters from the employer, expensive medical bills, etc., can be attached with the letter.  

Why contact an experienced loan modification lawyer?

While applying for a loan modification on your own, you must be completely aware of the process you are indulging in. Many loan modification scams have led homeowners who were trying to apply for modification by themselves to a much worse situation. 

To avoid such unfortunate conditions, it becomes essential for you to contact an experienced loan modification lawyer in the neighboring area. For instance, you can contact a loan modification attorney in Queens, NY, if you live in New York City. The multiple advantages that follow when you hire an attorney from our experienced team of loan modification attorneys

• Review your case

Our team thoroughly examines all the aspects of your case and analyzes whether you can apply for a loan modification or not. If you are not eligible for it, we have free consultations to guide you on the reasonably efficient way to cut your losses and immediate closing of your loan. 

• Negotiate with lenders

The attorney will be the one negotiating with your lender. The negotiations are held on restructuring conditions, monthly installments, reduction in interest rate, change from adjustable to fixed rate, reduction in delinquent fees and penalties, etc. However, the principal amount will not be a part of the negotiation.

• Protect you from misguidance

As indicated before, there are cases where you might be misguided by the lender while applying for a change in conditions of loan on your own. But since our team of loan modification lawyers in Nassau County and other regions is well-versed in this field, we are fully aware of the current situation and safeguard you from modification scams. 

• Save time

The whole process takes a lot of effort in filling applications, organizing financial documents, and keeping regular on the status of the application. Our lawyers perform all these tasks so you can focus on restructuring your financial conditions. 

• Modify existing loan

Depending on the financial condition, we showcase the conditions of your loan to be modified. This will eventually bypass the immediate closure of your loan, and repayment of the mortgage will be possible.

Conclusion

If you are still wondering whether to modify your loan or not, contact Radow Law Group. We provide free consultations to help our clients figure out different ways to apply for a loan modification. We possess a team of experienced and expert loan modification attorneys in Queens, NY, and other neighboring regions, including Nassau County, Brooklyn, and Suffolk County. No more worrying about mortgage as we are here to assist you with the most effective way to stop a foreclosure action and get familiarized with various loan services, obtaining loan modifications, current and pending legislation, and the criteria of federal programs.

To know more about us and the loan modification process, get in touch today!