What is Loan Modification?
A Loan Modification is a permanent change in one or more of the terms and conditions of a Borrower’s loan, which allows the loan to be reinstated, and results in a lower payment the Borrower can afford. Many Homeowners who are behind on their mortgage or experiencing a financial hardship may qualify for a Loan Modification. Loan modifications typically involve an extension of the length of the term of the loan, a reduction of interest rate on the loan or to receive a different type of loan. Lender determine a borrower’s eligibility for a Loan Modification by using specific financial analysis criteria when determining a borrower’s eligibility.
- The borrower’s surplus income is at least the greater of $300 and 15% of net monthly income.
- 85% of the borrower’s surplus income is insufficient to cure debt within 6 months.
- The borrower’s monthly principal, interest, taxes, and insurance (PITI) mortgage payment can be reduced by the greater of 10% of the original monthly mortgage payment amount or $100, as a result of the lender setting the interest rate at the Market Rate and amortizing the new loan over 30 years
Low & Low Bankruptcy attorneys have over forty years of New Jersey legal experience. Our offices are located in Hackensack, Jersey City, Paterson, Elizabeth, and West New York. By being focused on this widespread public need, our friendly and efficient staff are able to walk you through the loan modification process.Call our Loan Modification professionals at (800) 343-4749 to get answers to your problems quickly. We will help you to choose the best available option to help you deal with your mortgage crisis.