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Ronald J. Cappuccio, J.D., LL.M.(Tax)

Mortgage Loan Modification

Loan Modifications

Are you getting threatened with a potential mortgage foreclosure? Having your attorney negotiate a loan modification can help change some the terms of your mortgage. For example, a lowered interest rate may make your monthly payment more affordable to help avoid foreclosure. Sometimes, past due payments can be rolled into the package to keep you current.

Why will a Lender give a Modification?

No Bank really wants to foreclose a mortgage. Banks want to receive payments and are not in the business of owning and maintaining real estate. If the lender reviews your financial situation and determines your ability to pay. They may be willing to talk. Even if the lender's repayment plan does not give the bank the same value, it may be a lot better than a foreclosure.

How to Qualify For a Mortgage Modification

  1. You must have income (earned income, the longer the better!) - you should have current pay stubs, bank account statements, W-2s and tax returns. Business owners should have a current Profit and Loss Statement.

  2. Have a decline in income (reduction in hours, overtime, pay) This is usually demonstrated by a Personal Financial Statement.

  3. Suffered an economic hardship. A letter detailing the hardship should be included with the Modification request.

  4. Little or no equity in the property (market value, minus sales costs, are less than the mortgage balance.)

Watch Out for the Mortgage Foreclosure Scam!

This scam targets those who can least afford to lose their money - people about to lose their homes to foreclosure. The debt clearance, or credit protection, service claims they will negotiate with your mortgage lender to allow you to stay in the house. But first, you have to pay a big fee to them for their services. Usually, they do nothing but take your money and then leave the victim without the money and still stuck in foreclosure.


Call me at (856) 665-2121 today!


Ronald J. Cappuccio, J.D., LL.M.(Tax)
Counsellor at Law
1800 Chapel Avenue West, Suite 128
Cherry Hill, NJ 08002 USA
Phone (856) 665-2121
Fax (856) 665-9005

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