Serving Suffolk and Nassau counties, as well as New York City
(631) 456-4842

Loan Modification

THE FISHER LAW FIRM P.C. is located in New York State, and practices in the area of real estate transactions, foreclosure law and mortgage modifications. We are well positioned to assist borrowers who are suffering during this current real estate market deflation, with mortgage loan modifications. Call us at (631) 456-4842

Example of a Distressed Property Owner: One common example of a distressed property owner is a person who bought a home during the hey-day or bubble days of real estate (2001-2005). You may have bought the home for $480,000.00 and financed 90% of the price, i.e., took a mortgage for $432,000.00. Your home may now be worth $380,000.00, and you may be in default on the mortgage. Sound familiar?

If you believe that you can afford your home, if not for the high interest rate on your loan or if not for the fact that your mortgage debt now exceeds the value of your home, then we will help you deal with the bank (or private lender) and assist in negotiating a workout or modification of your loan, or even a short payoff.

Solutions:

  • Loan Modifications and Workouts: We can act as your counsel by dealing with the bank for you and assisting you in applying for a loan modification. If you are qualified, a loan modification might entail an interest rate reduction, a shift from an adjustable rate to a fixed rate, bundling your missed payments to the back end of your loan, reducing the principal balance on your loan or a combination of two or more of these items.
  • Short Payoff: We can act as your counsel by dealing with the bank for you when trying to pay off less to the bank than the full amount owed to the bank. The short payoff option might arise if you are refinancing your property with a bank different from the bank which currently holds your mortgage. The short payoff option might also arise if you are selling your property to a third party for less than what you owe on your mortgage.

Do You Need To Be In Default on Your Mortgage?

No. Sometimes, a bank will deal with solvent and current homeowners, especially if they are merely attempting to sell a house at market value, when the mortgage debt exceeds market value. If the scenario is right (e.g., mortgage of $430,000, home worth $380,000), there are banks that are willing to bend before your situation hits crisis mode. This is because your crisis turns into the bank’s crisis very quickly.

Why Not Just Walk Away From Your House?

In many cases, you could do just that – walk away. However, there are several reasons for negotiating a settlement. There is the danger that a bank, after the foreclosure process has been completed, will motion the court for a deficiency judgment and try to follow you for payment of any balance which may remain after the house is sold at public auction. Another reason to stay and negotiate is to maintain somewhat of a higher credit score. Staying current maintains your credit rating, delinquencies begin to harm the score and judgments begin to destroy it. Finally, you may be part of the large swathe of people who were blindsided by a declining market and economy and wish to extricate yourself from the mess, while maintaining the level of responsibility you have always tried to maintain in the past. There are those who may scoff at this last line of reasoning, but there are many who identify with it.

Call us at (631) 456-4842, and speak with one of our attorneys now. Our fees are reasonable, as we understand the hardships that you may be suffering.