Legal Solutions for Strapped Homeowners
A loan modification consists of a permanent change in the terms of your loan. This may be a solution for homeowners with financial hardships who are struggling to make their payments. A loan modification may result in a reduced interest rate, capped interest rate, a change in the type of rate, such as to a fixed rate from an adjustable rate, an extended loan term, reduced fees or penalties, or in a reduced principal. A forbearance program may also be instituted, in which the homeowner may be temporarily allowed to miss payments due to a financial emergency.
In general, loan modifications result in a payment that the homeowner can afford, keeps the borrower in his home, and both the borrower and the lender avoid the financial losses and complication of the foreclosure procedure. Loan modification programs are available through government programs, such as the Home Affordable Modification Program (HAMP), as well as mortgagers' own programs within their specific lending institutions. They may also be ordered by bankruptcy courts in some Chapter 13 cases.
It is important to discuss the specifics of your situation regarding the issue of a mortgage or auto loan modification with a qualified attorney. As a NYC/Long Island bankruptcy lawyer with decades of experience in this field, Mr. Perano can provide the answers and guidance you need. Your financial situation may warrant a Chapter 7 or 13 bankruptcy filing or some other type of legal action taken on your behalf. If you are facing a foreclosure, it is essential that you have proper information; avoid scammers with modification programs that may end up costing you more in the end. Consult with an experienced attorney; Mr. Perano serves homeowners and consumers in New York City, Long Island, and the counties of Nassau, Suffolk, and Westchester.