Successful Loan Modifications

Current economic conditions have led to lay-offs, reduction in wages, failed businesses, illness, and even divorce. These are only a few examples of what falls under the category of “financial- hardships” as defined by the Obama Administration’s Loan Modification Programs.

What is a Loan Modification?

A loan modification is much like a mortgage refinance in that the objective is to find a more affordable mortgage payment to fit your financial situation. The ultimate goal of the loan modification is to avoid foreclosure of your home. There are several options available to ease the burden of your current mortgage payments due to your specific financial hardship.

Does Modification Really Work?

Many Modification Services are quick to offer “pre approvals”, and make some sort of assurances of successful results. The truth is that the loan modification process is not an exact science, and that these assurances are no more than empty promises. In reality, a loan modification can be a complicated process, whose success can depend on a variety of factors. Such requirements are constantly changing. Especially when we consider that the modern day version of the loan modification process is itself a fairly new phenomenon. As such, banks themselves seem to be struggling to understand and implement the various guidelines set forth by the Obama Administration, not to mention trying to streamline the loans which may or may not fall under those very guidelines. This all means is that success depends not only upon whether one qualifies but also the steps their bank has taken to implement these guidelines.

Can One Increase their Chances to Qualify?

It is important to have a “consistent story” and to be prepared to document and substantiate your “story”. You must be able to provide your financial records in order to prove that you and your family have been affected by the current unstable and tumultuous financial crisis. It is equally important to understand the options (if any) your bank can offer to ease their burden.

What about Second Mortgages?

Many second mortgages are being forgiven or settled for less than their outstanding balance. Banks determine the extent of this solution on the value of the property, the threat of foreclosure, and the borrower’s inability to afford the payments. There are various ways this settlement can be negotiated.

Are Forensic Loan Audits Effective?

Qualified borrowers can request a report to audit their loan paperwork to determine whether there had been any wrong doings by the bank at the time of the closing of their loan. Whether you bought your home or refinanced your home within the last three years, this type of audit can determine if the bank violated any laws during the time that they lend you money to purchase your home. This report can result in the borrower collecting monetary damages from the bank, or, more commonly used as leverage with a bank in modifying your loan which will help you keep your home.

The Gelman & Associates Consultation

Experience sets Gelman & Associates apart from other companies. Our law firm has over ten (10) years of experience. Our experienced staff has in depth knowledge of the mortgage industry and has advised and assisted our clients with their loan modification process. Call Gelman & Associates at 718.615.4024 to schedule a consultation. Our law firm will give you the guidance, advice and options for your particular situation.