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127-16 14th Avenue, College Point, NY 11356

Loan Modification Attorney – Borrower & Refinance Representation

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    Borrowing money from a lender — whether it’s for a new mortgage, a refinanced mortgage or a mortgage loan modification — can be fraught with anxiety and paperwork. Consider using a loan modification attorney. A loan modification lawyer helps throughout the process and often gets you the best deal. Don’t lose your home because you didn’t understand the process. A mortgage law firm like Albert Maimone & Associates, P.C. in Queens, New York City your interests while you apply for a loan. Call today for a free consultation.

    What Is a Mortgage Loan Modification?

    Mortgage loan modification is a legal written agreement that changes the original terms of your mortgage. A loan modification plan may make your loan repayments more affordable, may increase the repayment term or may allow you to extract money from your equity in the property. If you’re struggling with home loan payments, a loan modification plan is one of the most effective financial solutions.

    Owning a home is one of the greatest investments you can make. And home ownership represents the American dream. But it comes at a high cost. In New York, for instance, the average mortgage payment is around $2,200. With the ever-rising cost of living, some household owners struggle with loan repayments.

    An experienced loan modification attorney from the Albert Maimone & Associates law firm helps borrowers apply for an original loan, a loan modification or a refinanced loan. Your New York City lawyer offers qualified borrower assistance and refinance representation to get you the best terms in the new loan. This real estate law firm serves all five NYC boroughs, as well as Nassau and Suffolk counties.

    Is Loan Modification Same as Mortgage Loan Refinancing?

    Mortgage loan modification and mortgage refinancing are both financial plans to ease your mortgage repayments, but they differ in significant ways. The factors that distinguish loan modification from mortgage refinancing include:

    • Loan terms. Mortgage refinancing is a financial arrangement in which your lender offers a new mortgage repayment plan. A loan modification only changes the terms of the original mortgage.
    • Choice of lender. You can only get a loan modification plan from the original mortgage lender. For a refinanced mortgage, you can shop for the best mortgage terms from a new lender.
    • Cash equity. In a loan modification, you only change the terms of the original mortgage with no opportunity to cash out your equity. With certain types of mortgage refinance, you can get some cash from the equity you’ve built up from your home’s value.
    • Loan process differences. For a loan modification, you negotiate using the old loan terms as you seek to lower your payments. For a refinanced loan, you get new terms for a new loan and the plan comes with a change of interest rates, terms repayments and other benefits.
    • A loan modification lawyer helps you save your home from foreclosure using a loan modification plan. Homeowners mostly use mortgage refinancing to cash in on home equity or ease repayments.

    Negotiating your home refinancing is a complex process. Your Queens mortgage lawyer offers a free consultation and a case evaluation. This highly-rated boutique law firm provides excellent legal services without big firm legal fees.

    What Are the Considerations in Loan Modification?

    If you want to manage your financial situation regarding your mortgage loan, get the right information and prepare for the process. Some of the requirements to qualify for a loan, refinance the loan or get a loan modification include:

    • Financial documents. Your mortgage lender needs all your current financial statements, including pay stubs, profit-and-loss statements for business owners, bank statements, tax returns, a hardship statement or an affidavit.
    • Loan-to-value (LTV). The ratio of the mortgage amount against the appraised value of the property helps the lender consider the viability of a loan modification.
    • Loan history. Your mortgage lender checks your loan history and notes any missed payments as part of qualifying you for a loan modification.
    • Housing expense ratio. This ratio refers to the amount of income you get compared to your household expenses.
    • Credit score. Lenders consider credit scores in all financial transactions. Improving your score before the loan modification process helps your application and rewards you with a better interest rate.
    • Proof of financial hardship. If you have gone through an event — such as loss of a job, divorce or medical issue — present the evidence to boost your case.

    Gathering all the documentation required for loan modification or a refinance is a difficult task. Borrower representation by a licensed New York lawyer eases the process and increases the likelihood of qualifying for a new loan or a loan modification.

    What Are the Different Mortgage Modifications Processes?

    A mortgage modification process can take different routes, based on your mortgage plan or available options. Common approaches to mortgage modification include:

    • Direct negotiations with your mortgage lender
    • Part of bankruptcy proceedings
    • Judicial foreclosure mediation
    • Streamlined loan modifications
    • Special programs from government-backed mortgage loans

    With the different loan modification options on the market, you may feel overwhelmed. Your Queens mortgage attorney guides you through the different loan modification approaches. You get the help you need to choose the most applicable for your situation.

    Why Negotiate for Loan Modification?

    If you’re struggling with loan repayments or your home is at risk of foreclosure, your mortgage lawyer may recommend loan modification to get your finances back on track. Benefits of a loan modification include:

    • Lower monthly payments. During loan modification negotiations, you target a lower monthly payment. Your loan modification lawyer negotiates by arguing you’ve lost income or you have new expenses.
    • Lower interest rates. The best Queens loan modification attorneys can get you lower interest rates in a modified mortgage loan agreement.
    • Loan restructuring. If the original loan structure had an adjustable interest structure, your lawyer may request a fixed-interest structure. Mortgage lawyers understand the real estate market and also look at your income to get you the best deal.
    • To make your mortgage more bearable and to offset your current financial burden, your lender may agree to principal forbearance. Your lawyer can request combining missed payments into the principal or a reduction of the owed interest.
    • Peace of mind. A mortgage loan modification comes with both tangible financial and psychological benefits. Relaxed repayment terms have a positive impact on other aspects of your life.

    If you plan to apply for a loan modification, consider the amount of preparation you require. While the process may sound straightforward, you need the guidance of a qualified mortgage lawyer to get the best deal. Reasons to use a loan modification lawyer include:

    • Getting qualified advice on mortgage loan modification and refinancing to ease your financial distress
    • Improving your negotiations because lenders listen to lawyers
    • Helping with foreclosure matters, including compliance with state foreclosure laws
    • Helping with paperwork
    • Identifying any violations in the mortgage process, including violations of federal or state loss mitigation laws
    • Appealing declined loans
    • Ensuring you get the best deal available during the convoluted loan modification negotiations

    A mortgage attorney makes a huge difference in loan modification negotiations. The real estate law team at the Albert Maimone & Associates law practice offers comprehensive borrower and refinance representation for both businesses and individuals. Contact a dedicated Queens mortgage lawyer today to enjoy a client-centered approach to your loan modification process.

    Albert Maimone & Associates P.C.

    127-16 14th Avenue
    College Point, Queens, NY 11356
    (718) 357-1216

    Page Updated on Mar 17, 2024 by Albert Maimone, Esq., (Lawyer) of Albert Maimone & Associates P.C.