Long Island, located just off the northeast coast, is the most populated island in the United States. Being the longest island in the United States, it has a population of 7,804,968, and its counties of Nassau and Suffolk are known to be a suburban area. Because of this, real estate could get pricey, and some of Long Island’s inhabitants could face troubles with their mortgage payments. When faced with foreclosure or any other financial troubles regarding their homes, some of those living in the suburban counties turn to Long Island loan modification.
What is a Loan Modification?
A Long Island loan modification, or any other loan modification, is an alternative that people in Long Island take whenever they are facing trouble with their mortgage payments. This process allows the Long Island homeowners to modify the terms of their mortgage out of the originally agreed arrangement. This I done with the help of attorneys specializing in cases concerning loans and loan modifications. There are many legal offices on the island where people could inquire about pursuing a Long Island loan modification, and the attorneys are more than happy to answer any questions.
The Benefits of a Loan Modification
Since those looking for a Long Island loan modification are having troubles with their finances, the purpose of the modification is to ease these troubles while still fulfilling the terms of the mortgage.
Some of the benefits of a Long Island loan modification are:
• Reducing late fees or any other penalties that could negatively affect the homeowner
• Lengthening the loan term
• Putting a cap to the payment per month and restricting it to a percentage of the household’s income.
• Making the loan a principal forbearance.
o Principal forbearance means that the borrower still has to pay his monthly payments, but the lender can defer an amount that could be left unpaid until the end of the deal. This lowers the borrower’s monthly payments. For instance, say that the homeowner owes a lender $100,000 on his loan that has to be paid in a period of 25 years. The lender can arrange the deal in such a way that the homeowner only pays $90,000 over the 25 years and has a balloon payment of $10,000 which could be paid at the time the deal ends.
• Reducing the principal to further relieve a homeowner’s debt.
• Reducing the interest rate or changing how the floating rate is calculated to the debt.
With these benefits, a person living in Long Island does not have to worry about having their property foreclosed. Applications for a loan modification doesn’t have to be at a time a homeowner is in financial crisis, they can be made if the homeowner sees some problems in the future which will make paying off the mortgage more difficult.
Where the Attorneys Come In
Long Island attorneys who specialize in cases concerning real estate, loans, and loan modifications are armed with the knowledge to make sure that a homeowner gets the best arrangement possible. This makes them excellent negotiators when they begin to deal with the bank. A homeowner, however, has to make sure that he is picking the right attorney for the job, as there are many loan modification attorneys that could be found in Long Island. These offices could be looked up online, and some of the sites provide their contact details so that a homeowner could just simply place a call if they have any inquiries.
A homeowner needs to remember that a loan modification attorney is speaking on his behalf, so he has to make sure the one he hires is looking out for his best interests.