Helping New Yorkers Keep Their Homes
In today's economic climate, foreclosure rates are higher than they have been in decades. If you are finding it hard to stay current on your mortgage payments, you are certainly not alone. Fortunately, there are legal options that can help you regain control of your financial situation and keep your home.
At Shaked & Posner, our New York City foreclosure lawyers aggressively defend clients facing the threat of foreclosure. We have in-depth knowledge of the law and we are ready to explain the details so that you can make wise decisions about your future. With nearly 40 years of combined experience, our attorneys know how to deal with lenders and will stand up for your rights at every turn.
Exploring Alternatives to Bankruptcy
A homeowner who doesn't want to file for Chapter 13 bankruptcy to avoid foreclosure can ask the lender to modify the mortgage to make monthly payments more manageable. This is known as a loan modification, and many lenders are willing to agree to them.
To arrange a free initial consultation to discuss your financial situation with an experienced New York City foreclosure attorney, call 212-494-0035 or toll free 888-783-6690. You can also contact our law firm online.
Different Options for Home Loan Modifications
Simply put, a loan modification can help homeowners avoid foreclosure by changing the financial terms of their current mortgages. Different types of home loan modifications may be available depending on your specific financial circumstances:
- Home Affordable Modification Program (HAMP): In this program, the bank may modify your mortgage if your debt-to-income ratio is in a certain range. To lower your monthly payments, the bank may extend the term of the loan out to 30 or 40 years, or may lower the interest rate to as low as 2 percent.
- Federal Housing Administration (FHA): This federal program offers its own version of HAMP for borrowers with federal home loans. The FHA also offers a loan modification program called partial claim. In a partial claim, the arrearage — usually up to 12 months' worth — can be placed into a separate second mortgage with no payments due.
If a borrower does not qualify for HAMP, the lender may still agree to modify the home loan. This is often called an internal modification, where the bank rolls the arrearage back into the principal, reduces the interest rate and extends the loan term.
At the time of your free consultation, these are among the options we will discuss with you. It is important to be careful when negotiating an agreement with a creditor. Any agreement should be in writing so that you can make certain you understand your rights.
Contact Us for a Free Consultation With a New York Loan Modifications Attorney
Some lawyers are all about the law. At Shaked & Posner in New York, we think it's people that matter. For a free consultation to discuss your specific legal needs, call 212-494-0035 or toll free 888-783-6690. You can also contact us online.
We serve clients in Manhattan, the Bronx, White Plains and Wilmington, Delaware.
