Loan Modification Attorney in White Plains
Are you a homeowner in White Plains who is struggling to make ends meet and facing the threat of foreclosure? If so, you may be eligible for a mortgage loan modification program that will reduce your monthly payments to a manageable level and keep you in your home. To get started, run – don’t walk – to White Plains Foreclosure Defense lawyer Michael H. Schwartz.
Mr. Schwartz has a record of securing loan modifications that have never been done before. In fact, he has never lost a single home to foreclosure. That’s because Mr. Schwartz knows more about the loan process than the banks and loan servicers do. He is ready to put that knowledge and experience to work for you today.
To learn more about how you can save your home through loan modification, contact Michael H. Schwartz, P.C., and receive a review of all of your rights and options in a free consultation.
The bottom line: Mr. Schwartz gets results for homeowners who need a foreclosure defense attorney.
Read highlights of other mortgage loan modifications Mr. Schwartz handled.
What Is a Loan Modification?
Whether you refinance your home or get a loan modification, the goal is the same – to make your monthly housing payments more affordable for you and your family. However, while refinancing a loan involves getting an entirely new loan, a modification involves simply changing the terms of your existing loan. With refinancing, you may work with a new lender. With a modification, you will negotiate with your current lender (or loan servicer).
If you are facing financial hardship and falling behind on your monthly mortgage payments, and you find yourself edging towards foreclosure, a loan modification can provide a lifeline. The key is to modify the terms of your loan in a way that will benefit you in both the short-term and long-term.
That is why it is important to work with an experienced White Plains, NY foreclosure defense lawyer like Michael H. Schwartz. He will know how to deal with your lender and fight for a loan modification that will serve your best interests today and well into your future. When you work with Mr. Schwartz, he will skillfully negotiate with your lender and seek changes to your current mortgage such as:
- Cutting your monthly payments
- Lowering your interest rate
- Converting from an adjustable (or variable) rate to a lower fixed rate
- Extending the term of your loan
- Getting a forbearance (or forgiveness) of past-due amounts
- Adding any past-due amounts (including interest and penalties) to your mortgage balance.
Foreclosure can be expensive for lenders. They want to avoid the hassle. With a knowledgeable attorney on your side, you may find that your lender is more than willing to change the terms of your mortgage because it will ultimately serve the lender’s interests as much as your own. Additionally, if you need to readjust your loan a second time, it is imperative that you have a trusted loan modification attorney on your side.
Who Is Eligible for a Mortgage Modification?
Generally, as a homeowner in White Plains, you may seek a mortgage modification if:
- The home serves as your primary residence rather than as a second home or property that you use for rental income.
- You have encountered financial hardship that makes your current home payments unaffordable such as the loss of your job or an injury or illness that has led to overwhelming medical bills.
- You earn enough income to make payments in the future (as long as those payments are reasonable in light of your financial situation.
A loan modification is not for everyone. At Michael H. Schwartz, P.C., we will carefully review your situation, discuss all of your options and help you to decide whether seeking a modification of your mortgage is the smart financial decision for you and your family. If so, we will aggressively pursue the new loan terms that you will need in order to stay in your home.
How Can You Get a Loan Modification?
The three main ways in which White Plains foreclosure defense lawyer Michael H. Schwartz can help you to pursue a loan modification are:
- 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. The loan modifications typically will align with the guidelines set by the U.S. Department of Housing and Urban Development (HUD). In order to obtain a voluntary loan modification, you will need to demonstrate that even though your financial circumstances have changed, you will still have enough money available to make regular payments if the terms of the mortgage are modified. Mr. Schwartz can help you to prepare your application. He can also gather all of the paperwork that you will need to present in support of your application.
- Mediation Process
If voluntary loan modification negotiations fail to produce an agreement between you and your lender, you will likely be sued in foreclosure. The New York State Court System has a mediation program for loan modifications. In mediation, you and the lender will sit down with a neutral third party – the mediator – in order to negotiate an agreement. Mediation has a more formal, focused structure than voluntary loan modification negotiations, but it still involves less time and expense than a trial. You can count on Mr. Schwartz to aggressively protect your rights and interests throughout mediation.
- Bankruptcy Court
If mediation fails, you may have other options available to you such as filing for bankruptcy. Filing for bankruptcy allows you to stop the foreclosure process and buy yourself some time while you work out a solution. As part of a bankruptcy agreement, you may be able to catch up on your missed payments and apply for a loan modification that the bankruptcy court supervises. At the same time, you can address other sources of debt such as credit card balances and car loans. In some cases, the solution for a White Plains, NY homeowner may be to simply walk away from an “underwater” mortgage (when a borrower owes more than the home is worth).
How long it takes to get a loan modification will depend on your specific circumstances. Typically, the process takes between three to six months to complete. Some lenders or servicers offer a “streamlined modification” process. For instance, a lender may determine an amount that it believes you can afford each month and offer it to you. After you successfully make a series of payments during a trial period, your loan will be modified.
Will a Loan Modification Affect Your Credit Score?
If you cannot afford your mortgage and fall behind on your monthly payments, then it will definitely hurt your credit score. So, if you can modify the terms of your loan and make your mortgage more affordable so that you don’t miss your monthly payments, it will ultimately help to protect your credit score as you move forward.
In most cases, as long as you continue to meet the terms of your modified mortgage, your mortgage will be reported as current and paid in full. However, some lenders or servicers may report it as a “debt settlement,” which would lower your credit score. It will be important to carefully examine the terms of your loan modification and see how it will be reported to credit bureaus. You can count on Michael H. Schwartz to ensure that your loan modification is properly reported and to take all other necessary steps to protect you.
Why Do You Need a Lawyer for a Loan Modification?
The loan modification process can be a confusing, complicated and highly stressful one. You will need to ensure that your application is complete and accurate. You will also need to provide supporting documentation such as pay stubs, tax returns, bank statements and other proof of your current financial hardship and your ability to make modified payments as you move forward. Gathering and compiling all of this paperwork can quickly become overwhelming.
You should also never assume that a mortgage lender or servicer is on your side. Instead, you should expect them to be solely out to protect their own interests. For example, a servicer may refuse to waive fees and penalties, or it may barely budge when it comes to lowering the amount of your monthly payments. Additionally, applying for a loan modification – unlike filing for bankruptcy – does not stop the foreclosure process. So, while you are trying to negotiate a loan modification, the lender or servicer may continue to foreclose on your home anyway.
All of these are reasons why you should work with an experienced attorney such as Michael H. Schwartz. If you choose to pursue a loan modification, he will take care of all of the paperwork for you. He will also aggressively negotiate with the lender or servicer and pursue a loan modification that keeps you in your home and protects your financial future. If a bank tries to take advantage of your or violates your rights, he will be ready to fight for you in court.
Get Help from a White Plains Loan Modification Attorney
If you are finding it to be impossible to keep up with your mortgage payments, don’t panic and never surrender. Instead, get Michael H. Schwartz, P.C. on your side. He will bring more than 40 years of experience to your case and a record that includes never losing a home to foreclosure. Don’t wait to get started. Call or reach us online today for a free initial consultation.