I Made a Mistake, Can I Amend My Bankruptcy Petition?
When filing for bankruptcy, a debtor files a petition with the Bankruptcy Court that is approximately 60-75 pages and contains essential details regarding a debtor’s
Are you behind in your mortgage payments or struggling to keep up with your mortgage payments? Have your efforts to renegotiate the terms of your mortgage with your bank failed? If your mortgage payments are become unmanageable and foreclosure seems like it is right around the corner, you need to know about all your options by contacting a loan modification attorney.
Filing for bankruptcy is one of the most effective ways of avoiding foreclosure. That said, if you simply do not want to file bankruptcy, a mortgage modification may be the solution for you.
A New York loan modification (or mortgage modification) is much like a mortgage refinance. The whole idea of a loan modification is to match your mortgage payment with your financial situation. The primary difference between a mortgage modification and a mortgage refinance is that instead of looking for a new loan, the terms of your existing mortgage are modified. It is especially helpful for those who may not have significant equity or for those with low credit scores. After a successful loan modification, you will no longer be under the threat of foreclosure as long as you continue to pay your mortgage payments based on the terms of the new, modified loan.
Your eligibility for a NY Mortgage Loan Modification depends on who services your mortgage. Almost all servicers have very similar qualifications. These include:
In order to receive a Loan Modification in New York you need to demonstrate to the bank that you will be able to afford the new modified loan terms. The bank will review your income, expenses and debt to income ratio. The equity or lack of equity in your house may also be a factor.
So, why would a bank modify your loan? Because, simply put, it is sometimes in the best financial interest of the bank to give you a loan modification. Please do not confuse this transaction with altruism. It is fundamentally a cost benefit analysis. It makes more business sense than the alternative which could involve an expensive foreclosure proceeding.
However, a Mortgage Loan Modification is in no way guaranteed. A lender is not obligated to approve a mortgage modification. In fact, statistically, most do not. If an adequate arrangement cannot be worked out with your lender, you may have to seek other alternatives to avoid foreclosure, such as a short sale or bankruptcy.
It should be noted that if your house has no equity, you may be able to use a Chapter 13 bankruptcy to remove a second mortgage. This is known as a lien strip. If you are considering a mortgage modification, you should also be considering a Chapter 13 bankruptcy.
At the Law Offices of David I. Pankin P.C. our New York Loan Modification Lawyers are ready to answer any questions you might have regarding the ins and outs of mortgage modifications.
Please contact our office by phone at 888-529-9600 to arrange for a free, initial consultation with one of our loan modification attorneys.
We have a loan modification attorney at each of our offices in New York, Brooklyn and Long Island.
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When filing for bankruptcy, a debtor files a petition with the Bankruptcy Court that is approximately 60-75 pages and contains essential details regarding a debtor’s
Typically, prior to filing for bankruptcy, most debtors have already been struggling with debt for a year or more. During that time, while juggling which
On July 24, 2024, the Administrative Office of the U.S. Courts released statistics for bankruptcy filings for the 12-month period ending on June 30, 2024.
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The Law Offices of David I. Pankin, P.C. provides bankruptcy, foreclosure and loan modification representation to clients throughout the New York area in boroughs that include Manhattan, Brooklyn, Long Island, Queens, Bronx and Staten Island. This website is a Legal Advertisement. Our firm assists in the discharge of debt. We help people file for bankruptcy relief under the bankruptcy code. 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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