What You Need to Know About the Mortgage Loan Modification Process

Contact the law office of Michael H. Schwartz, P.C. today for a free consultation.

If you’re facing foreclosure, you’re probably looking for options – and a mortgage loan modification might be one choice on the menu.

In a mortgage loan modification, one or more of the requirements of a loan are changed so that the person paying the loan can more easily meet the terms. When a loan modification is made to a home loan, the result may be a payment you can continue to make, allowing you to keep your home.

Michael H. Schwartz is the attorney you need to fight for a mortgage loan modification to save your home from foreclosure. The reason is simple: Mr. Schwartz has a record of securing mortgage loan modifications that have never been done before. In fact, Mr. Schwartz has not lost a single house to foreclosure.

Mr. Schwartz is never out of the fight. He is committed to saving your home through mortgage loan modification. If the banks refuse to comply, Mr. Schwartz takes them to court – and wins.

That’s because Mr. Schwartz knows more about the loan modification process than the banks and loan servicers do. In addition to extensive experience handling loan modifications, Mr. Schwartz has also participated in Max Gardner’s highly respected Foreclosure Defense and Mortgage Modification Bootcamp and the Advanced Foreclosure Defense and Mortgage Modification Bootcamp.

The bottom line: Mr. Schwartz gets results for homeowners who need a mortgage loan modification.

Here are just a few examples of his many successes:

  1. Case No. 34937
    Date loan modification agreed to by client: 2/17/2015.
    Loan Servicer or Lender: Wells Fargo Bank, N.A.
    Amount owed on loan with arrears at the time of foreclosure workout: $944,011.33.
    Loan reduced to: $661,250.00.
    Amount of debt wiped out (forgiven, also known as principal reduction) $282,761.33.
    New interest rate: 4.75% fixed interest rate for 23 years (reduced from 6%)
    Arrears put at the end of the loan.
  • Case No. 34754:
    Date loan modification agreed to by client: 04/27/2014
    Loan Servicer or Lender: Ocwen Loan Servicing, LLC.
    Amount owed on loan with arrears at the time of foreclosure workout: $385,479.89
    Amount of debt wiped out (forgiven, also known as principal reduction) $44,948.44
    New interest rate: 2% fixed interest rate for 19 years (reduced from 8%).
    Arrears put at the end of the loan
  • Case No. 33713
    Date loan modification agreed to by client: 09/13/2014
    Loan Servicer or Lender: JP Morgan Chase Bank, N.A.
    Amount owed on loan with arrears at the time of foreclosure workout: $418,802.74.
    New interest rate: 2% for 5 years; 3% for 1 year, 4% for 1 year, 4.125% for 13 years. (reduced from 6.125%)
    Arrears put at the end of the loan.

Read highlights of other mortgage loan modifications Mr. Schwartz handled.

Ways to Seek a Mortgage Loan Modification

There are three ways to seek a mortgage loan modification.

Voluntary Loan Modification

In a voluntary loan modification, the lender and borrower come together and agree on a change to the terms of the mortgage. Loan modifications may be governed by guidelines set by the U.S. Department of Housing and Urban Development (HUD).

To help your request for a voluntary loan modification succeed, you’ll need to demonstrate that your financial circumstances have changed, but that you still have enough money available to make regular payments if the terms of the mortgage are modified. Mr. Schwartz can help you gather the necessary paperwork and present a proposal to the lender. He is prepared to fight until the lender or servicer grants the modification.              

Mediation Process

If voluntary loan modification does not result in an agreement, you will be sued in foreclosure. The New York State Court System has a  mediation program for the loan modification process. In mediation, you and the lender will sit down with a neutral third party – the mediator – in order to negotiate an agreement. Mr. Schwartz can represent your interests during mediation.

Mediation offers a more formal, focused structure than voluntary loan modification negotiations, but typically requires less time and expense than a trial. If mediation fails, options remain available, such as filing for bankruptcy in court.

Bankruptcy Court

Filing for bankruptcy allows you to stop the foreclosure process, buying you time while you work out a solution. As part of the bankruptcy agreement, you may be able to catch up on your missed payments, apply for a loan modification that is supervised by the bankruptcy court, or walk away from an “underwater” mortgage (a situation in which you owe more than the home is worth). A bankruptcy claim may also help you address other sources of debt, such as credit card balances and car loans.

Need a Loan Modification? You Need Attorney Michael H. Schwartz.

New York bankruptcy attorney Michael H. Schwartz has assisted clients with more than 5,000 filings. Under his guidance, clients haven’t had a single discharge denied or lost a single home in foreclosure.

As one of the top-rated bankruptcy lawyers in New York, Mr. Schwartz can help you keep your home and preserve your future financial well-being. To learn more through a free case review, call (855) 637-1359 or send us a message.

“Mr Schwartz handled my loan modification with Professionalism and great knowledge.. my case was very complicated and Michael made me feel protected against the powerful banks which can seem overwhelming. He represented me all the way and succeeded in getting me a loan mod which had never been given out by my bank! I recommend Michael to help you in a situation that can seem very tough.”   – Frank Cardillo  March 2017

To arrange for a free initial consultation with NY bankruptcy attorney at Michael H. Schwartz, P.C., call us toll-free at (855) 637-1359 or contact us online.

To arrange for a free initial consultation with NY bankruptcy attorney at Michael H. Schwartz, P.C., call us toll-free at (800) 666-9743 or contact us online.