There can be many reasons for wanting to modify your mortgage loan in New York. Perhaps you are struggling to pay for your repayments, have encountered a change in lifestyle such as a loss of job or increased medical costs or you want to dedicate your income to other priorities.
It is possible to modify your mortgage so that the repayments are less, but it’s important to consider whether this is a wise idea since this will likely mean a prolonged mortgage repayment period.
What steps should I take in order to modify my mortgage?
The first thing that you should do is create a budget. Think about your financial situation and consider whether a mortgage modification is the best choice for you. Once you have decided that it is, you can give your lender a call and explain to them your situation.
It may take some time before you are able to gain a meeting with the person that can make a mortgage modification happen. Be patient, but be persistent. You should keep calling if they are not making progress as you think they should.
Once you have a meeting in place, you should gather all paperwork that you have relating to your mortgage and your home. You should also have bank statements for the previous three years, tax returns for the previous two years, and a proof-of-hardship statement. You should also make sure that you take notes of any communication that you have with your lender for future records.
What is a proof-of-hardship statement?
If you want to modify your mortgage based on the fact that you are struggling financially, it may help your chances of your success if you have proof of this financial hardship. This could be a proof of disability, increased child support documents or medical bills. This can show your lender that you are a responsible person that has external factors affecting the need for a modification.
If you are struggling to pay your mortgage, it is important that you take action as soon as possible before the situation begins to spiral out of control.