What are the Eligibility Requirements for a Loan Modification?

One of the most crucial factors in the loan modification process is arranging the terms for something you can afford. Your housing expense should generally be at a 25 to 45 percent share of your gross income in a home loan. After determining this, you will need to qualify for a modification with your lender.

In the case of a home loan, you will generally need to show that the home in question is your primary residence, that you have undergone some severe financial hardship that makes your current payment unaffordable, and that your income is enough to afford a more reasonable payment.

The eligibility requirements will need to be proven through such financial documents as bank statements, tax returns, pay statements and more. Additionally, you may need to provide a written explanation to your lender about the hardships that have led to your situation.

New York Loan Modification Laws

You may run into companies that provide loan modification assistance for a fee upfront. However, you should avoid them. Under New York law, collecting a fee upfront for a loan modification is prohibited. Fees for this service can only be collected after the service has been completed.

How Long Does a Loan Modification Take?

Lenders generally have 30 days to respond to your submission of a loan modification. Once the lender receives your documents, you are optimally assigned to someone who will be in charge of your case and be given this person’s contact information.

You also have a right to be given documentation of your current loan status, including your balance and history of payment, and the same legal entity that owns your loan.

Contact Our Loan Modification Lawyers Today

Fine Law Offices represents clients in New York, New Jersey, and Connecticut in assisting homeowners facing foreclosure. Negotiating with lenders to obtain a loan modification can be a daunting task. The skilled and experienced Long Island loan modification attorneys at our firm know the ins and outs of this process and can greatly improve your chances of obtaining a loan modification to stop the foreclosure of your home.

We work within your budget, offer flexible payment plans, and have a high success rate. We have handled millions in loan modifications for clients across the Tri-State area. Our firm provides reliable and aggressive legal representation and the knowledge needed to negotiate with lenders on your behalf successfully. We have experience with both lenders and borrowers and are well-versed in the regulations and laws in New York, New Jersey, and Connecticut. We can help you negotiate with your bank and reach a mutually-beneficial agreement.