11/27/2011 // Marlboro, NJ, USA // lesrkramskyesq // Marc Rosenbaum
When a person applies for a loan modification, the process can take several months of filling out forms, gathering documents, writing letters, etc. In order to modify a loan, both lender and borrower have to agree to the new terms, since it would be illegal to modify the terms of an original contract without the knowledge and consent of both parties involved.
The process of a loan modification is more like a negotiation, but few homeowners and borrowers treat it as such. In many cases, the borrower is so happy to hear the news that their application for a modification has been approved; they leap at the first offer given to them by their lender.
Les Kramsky, a highly respected New Jersey and New York real estate and mortgage banking attorney, states that borrowers should not be afraid to negotiate:
“Borrowers facing foreclosure are already in a very fragile emotional state, which is understandable. The idea of losing one’s home is enough to rattle anybody to their core. Lenders know this and, in an effort to save as much money as they can, will often fail to offer the best possible deal to their borrowers. Lenders know full well that borrowers will jump at the first offer made just so they can put the whole experience behind them. For many borrowers, the first offer made is just fine. They see the first offer as better than nothing. In reality, borrowers could unknowingly lose out on thousands of dollars over the length of their loan just by not presenting a counter offer to their lender. Thousands of dollars for the struggling homeowner could be better spent paying off other debt instead of paying an inflated interest rate or overpriced late fees.”
Les Kramsky advises homeowners pursing a loan modification to secure a local real estate attorney to handle the negotiation for them. At the very least, he advises, borrowers should attempt to negotiate with their lenders and try to talk them down to a better offer. Many borrowers may be surprised to learn that a little persistence will go a long way over the length of the loan.
“Borrowers have to remember to put their loans into perspective” Kramsky says. “What may seem like a good deal now may only be a temporary fix to a long term problem. Negotiating for the lowest possible monthly payments now is a good way to help avoid foreclosure in the future. There isn’t anything wrong with asking for a lower monthly bill…that’s the whole point of a negotiation.”
About The Law Offices of Les R. Kramsky, LLC:
The Law Offices of Les R. Kramsky, LLC is a full service law firm representing both businesses and consumers in New Jersey and in New York and throughout the United States. Les Kramsky has been voted as one of the top real estate, title insurance and mortgage attorneys by his colleagues.
Les R. Kramsky, Esq. possess a keen sense of the law and markets, along with an astute business background that is invaluable in real estate law, corporate law, contracts, leases, title insurance and the mortgage banking industry. Legal representation and counseling is critical in our complex modern world, and The Law Offices of Les R. Kramsky, LLC is driven by a desire for excellence and commitment to provide quality, personalized service with integrity.
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