Things to Remember About Long Island Loan Modification

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If Long Island was a state all on its own, it would be the 13th most populous state in the United States and the first when it comes to population density. Not only does Long Island house the busiest airports in the entire state of New York (JFK International Airport and LaGuardia Airport), its counties of are known be among the busiest suburban areas.

Foreclosure is a reality that Long Island homeowners seem to know well, and many of course try to prevent it. This is why many homeowners seek help in the form of a Long Island loan modification. With the help of a loan modification attorney, a homeowner can ensure that he does not have to file for bankruptcy or have to have any fear of the bank foreclosing his property.stock-vector-long-island-new-york-united-states-of-america-states-cities-skyline-silhouette-black-design-vector-205736398

This article serves to provide more information about Long Island loan modification. Below are some of the things to remember when a homeowner decides to apply for a Long Island loan modification, such as the qualifications, how the lender goes about the loan modification, and so on.

 

 

  •  A homeowner is allowed to receive a Long Island loan modification once within a 24-month period.

 

  • Many factors could affect a homeowner’s application for a loan modification. This could include if the homeowner is experiencing a loss of income, if the homeowner or others within the house receives any “continuous income”, the homeowner’s surplus income is still insufficient to make the necessary payments, and, of course, if the homeowner has not received a loan modification is the past 24 months.

 

  • The lender in the deal may include all the legal fees and foreclosure costs that have been worked off in the current deal in the new principal balance. However, he is expected to give up claiming all late fees, if there are any.

 

  • The lender in the deal may also inspect the property to see if any physical modifications to it will directly affect the homeowner’s capability to pay off the mortgage with the loan modification.

 

  • The interest rate should be changed to match or follow the current Market Rate. The Market Rate is defined as the rate that is not more than 25 basis points greater than the most recent PMMS (Primary Mortgage Market Survey) Rate and rounded off to the nearest one-eighth of one percent.images

 

  • The lender of the deal must re-amortize the total unpaid amount that is due over a 360 month period once the loan has been modified.

 

  • The lender must also perform an escrow analysis when the loan modification happens so that the capitalized payments reflect the escrow requirements that is needed for the months capitalized.

 

  •  If ever during a financial review the lender of the deal encounters problems such as unemployment for the homeowner and the household income and expenses are sufficient to pay off the modified mortgage but not enough to pay off the arrearage, the lender has the right to speak to their own attorneys or any other legal counsel to see if the homeowner is still eligible for the loan modification.

A homeowner should also keep in mind to prepare the necessary documents needed for his application and should also be ready to answer any questions that the attorney and lender may ask once the application is underway.legal

If a Long Island homeowner should still have any questions regarding their application to a loan modification or anything about their mortgage in general, there are numerous loan modification attorneys that could be contacted. Many of these attorneys in Long Island have had many years’ experience and could be helpful in sorting out any legal issues and speak on behalf of the homeowner.

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