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Mortgage Loan Modification

Guiding You Through the Loan Modification Process

Need an attorney for a mortgage loan modification case in Hackensack? When you are looking for an alternative to bankruptcy or bankruptcy does not go far enough, homeowners who are having trouble keeping up with or who have fallen behind on their mortgage payments should consider applying for a mortgage loan modification. The financial benefits realized by homeowners approved for mortgage loan modifications often result in savings in their monthly payments of more than $1,000.00 per month. Saving over the entire terms of a modified mortgage usually vary anywhere from $100,000.00 to $200,000.00. The most common and successful mortgage modification program is the federal government's Home Affordable Mortgage Program, commonly known as "HAMP". However there are several other government sponsored mortgage modification programs. Also many if not most lenders have their own in house procedures for granting homeowners mortgage modifications.

It should be noted that the HAMP and all non-HAMP mortgage modifications are voluntary in nature. Mortgage lenders have no legal or mandatory obligation to approve any homeowner for a modification. However, mortgage lenders have been granting well over 90% of modification applications submitted by The Law Offices of Marc Alster.

Prospective Benefits of a Mortgage Modification

The mortgage lender may choose to modify a delinquent loan in several different ways. Usually a lender will provide relief to the homeowner by one or more of the following ways:

  • Lowering the interest rate. In a HAMP mortgage modification the borrowers interest rate is often lowered to 2% on the outstanding principal balance for the first 5 years of the modification; thereafter the interest rate increases 1% per year until it is maxed out at the best mortgage rate available at the time of modification approval.
  • All mortgage arrearages existing at the time of approval are almost always capitalized (added) into the new principal balance of the modified mortgage. Sometimes the mortgage arrearages are not capitalized and simply added as a balloon payment at the end of the mortgage loan.
  • Extending the term of the mortgage and/or calculating the new payments based on a 40 year as opposed to a 30 year payment schedule in order to further reduce the homeowners new monthly mortgage payment under the modified mortgage.
  • Though very uncommon, the mortgage lender may consider reducing the balance die on the mortgage loan.

As indicated above, the benefits of being approved for a HAMP or even a non-HAMP mortgage modification are often somewhere between $100,000.00 and $200,000.00 over the term of the homeowners mortgages.

Who is Eligible for a Loan Modification?

Homeowner(s) who is either behind on their monthly payment obligation, who are no longer able to stay current on their monthly mortgage payments, and have little to no equity remaining in their residence are eligible for a HAMP modification or a non-HAMP modification to prevent and/or stop foreclosure actions filed against their homes. Under certain circumstances, homeowner(s) should be behind on their mortgage obligations to be eligible for certain mortgage modifications. In most circumstances this is not necessary. There are several substantive factors such as household income, the amount and how long homeowner(s) have been delinquent on their mortgage(s), all of which factors into whether homeowner(s) are eligible for a HAMP and/or other non-HAMP mortgage modifications.

Mortgage Modification Consultation

At the consultation Mr. Alster will personally review the necessary financial information the lender would be considering in their decision as to whether or not to grant a modification. Mr. Alster will usually make one or two phone calls to the prospective client(s) mortgage lender to make sure the homeowner is eligible for a HAMP or non-HAMP modification.

Why Do You Need an Attorney for Loan Modification?

Successful loan modification for a HAMP mortgage depends on your mortgage company's voluntary participation in the U.S. Government's loan modification program. Although not all mortgage lenders participate in the HAMP program, the vast majorities do participate in other government backed modification programs or have their own in house modification programs. Either way working with the mortgage company is often procedurally extremely difficult. Usually, homeowner(s) wishing to modify their mortgage(s) will get shuffled around from person to person when they try to talk with their mortgage lender or mortgage servicing company. The process is frustrating and labor intensive. Also specific financial information and how it is presented can be very sensitive.

The cost of most mortgage modifications often amount to approximately one mortgage payment; the mortgage loan modification consultation with Mr. Alster is completely free with homeowner(s) having an extremely high likelihood of success if approved by Mr. Alster and confirmed as eligible by the mortgage lender. It is strongly suggested from both a procedurally and substantive standpoint, that an experienced attorney, skilled in applying for mortgage modifications be retained.

Processing a Mortgage Loan Modification Should not be a do it Yourself Project.

While Mr. Alster cannot guarantee the outcome of a modification application, having an experienced attorney who has been representing and applying for modifications since mortgage modifications first became popular several years ago greatly increases homeowners chances of having their modification approved.

Anytime a borrower is facing foreclosure or a situation where they are unable to make their mortgage payments, it is a serious problem. We understand not only the financial impact this type of situation can have on a family, but also the emotional toll it can take. Let us offer you our expertise in loan modification matters. To get started on your loan modification today, and see what programs may be available for you, please call or contact us today.

The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.

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The Law Office of Marc G. Alster - Hackensack Bankruptcy Attorney
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