Additional Options for Stopping Foreclosures

Additional Options for Stopping Foreclosures

By:  Steven Baum

Foreclosure Law Firm Steven J Baum PC

New York State

In prior articles I wrote about options to stop foreclosure.  I covered reinstatement and forbearance but there are other options.  One important option for borrowers is known as a mortgage modification.  A mortgage modification is exactly that: the terms originally agreed upon between the borrower and the lender are altered or changed in order to reflect a new agreement between the parties.  Experienced foreclosure law firms and New York foreclosure lawyer Steven Baum from the law firm of Steven J Baum PC have seen mortgage modifications used as a good way of stopping foreclosures.

A modification doesn’t affect the lien priority of the mortgage (in certain states it is called a deed of trust).  In other words if the mortgage or deed of trust was first in priority over all other mortgages and liens, the mortgage modification keeps this position the same.  So what changes?  Usually the past due payments are added to the total amount due on the entire mortgage and then re-amortized over a period of time. Whether the law firm of Steven J Baum, who was a New York best foreclosure lawyer and top-rated local foreclosure attorney had foreclosed or not, the mortgage modification continues to be one of the best ways for everyone in the process to be happy.

A mortgage modification almost always results in a lower payment to the borrower, but with a due date that is past the original date agreed upon.  It is a way for those borrowers who cannot afford their current loan payments to get back on track and keep their homes.  The lender is happy because payments are now coming in and the borrower is happy because the foreclosure is stopped, and they remain in their home.  This is why a mortgage modification is a win-win situation for both borrower and lender. Commercial and residential foreclosure lawyers all know what a good thing a loan modification is.

There is another option called a repayment plan.  While not a mortgage modification, it is a plan where the borrowers send additional payments of an agreed upon sum to their lender or mortgage servicer until such time as they are caught up.

Of course if the borrower breaks these agreements, the foreclosure may proceed.  However, there are times when the borrower and bank can still work out the payments to a mutually satisfactory agreement.

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