SEEKING A LOAN MODIFICATION IN CHAPTER 13
If you retain The Berlinsky Law Firm, Stephen Berlinsky if appropriate will seek to get a modification of your mortgage loan to make you loan more affordable. As part of the bankruptcy process Mr. Berlinsky will file a motion for mortgage mediation seeking a modification of your loan. Mediation is a process where after making an application for a modification, you meeting with your attorney and the lenders attorney before a Certified Mediator who will attempt to get the parties to reach an agreement to modify the mortgage. The bankruptcy court will enter an Order of Mortgage Mediation, the process differes from modification sought in foreclosure cases in that the lender and the borrower are ordered to participate in the process, at all times acting in good faith; furthermore to avoid issues of documents not being received or correspondence being lost, all communication and delivery of all documents is through an online database which allows for upload of documents and correspondence. .The fees charged by the mediator are split equally between the parties. The online database is managed by Default Mitigation Managment LLC. THe portal maintains a separate record for each case indeing documents to be reviewed, communications, decision status, and maintains a time line for the process. The standard Mediation Order requires to process to be completed within 150 days. The mediator receives a fee of $500, and the borrower and the lender share this cost by each paying $250.00.
Modification of your mortgage may include a reduction of your interest rate (which reduces the payment), or an increase in the term of the mortgage (which reduces the payment) or a combination of both. In some cases the past due payments are added on to the end of the loan as a balloon payment but do not accrue interest. In rare cases debt reduction can occur.
To apply for a modification you will generally have to provide: a hardship letter explaining what prevented you from making your payments, complete a request for mortgage assistance form (RMA), complete a Form 4506T (which is a request for a copy of your income tax returns in transcript form), copies of your pay stubs, copies of your bank statements, copies of a utility bill to prove you reside in the home, you will complete a Dodd-Frank Certification form which confirms that you have not been convicted of a crime within the last 10 years in connection with a mortgage or real estate transaction, furthermore you will sign a borrower authorization firm authorizing Stephen Berlinsky as your attorney to speak with the lender. In some cases you will also provide contribution documents if a spouse or relative not liable on the loan is willing to provide you with financial assistance to obtain a modifcation. After you complete all the forms I request that my clients schedule an appointment to meet with me for an appointment that will last about one hour, to go over your forms page by page to make sure they are complete.
MORTGAGE MODIFICATIONS AS OF SEPTEMBER 1, 2015 ARE SUBJECT TO A NEW PROCEDURAL RULE.
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