Zachary Zawarski, Esquire, is a loan modification attorneys practicing in Bethlehem, Pennsylvania. If you’ve fallen behind in your monthly mortgage obligations, you may be eligible for a loan modification. A loan modification would provide you with a completely new loan and would add any amounts in arrears to the balance of the loan.
In many cases, the interest rate on the loan is reduced to current market rates and can even be lowered to as low as 2%. Other options for loan modifications are to extend the time to pay off the loan to 40 years or forgiving principal. We’ve had experience in both HAMP loan modifications and traditional loan modifications.
In order to obtain a loan modification, you must have experienced a financial hardship such as a loss of a job, a decrease in your income, a health issue, or divorce. You then must establish that you can afford the mortgage if it is modified. Many lenders will want to see that the new loan terms make your monthly mortgage obligation approximately 31% of your gross monthly income.
If you applied for a loan modification for a property in Bethlehem, PA and your lender is not working with you or would like legal counsel to submit a loan modification application, please call us at (610) 417-6345.