Save Your Home

Peter Kaplan is also a licensed real estate broker who specializes in loan modifications and short sales.

Law Offices of Peter R. Kaplan PC is a federally designated debt relief agency.

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Peter

Board-Certified Bankruptcy Attorney

Peter Kaplan is one of a handful or lawyers state-wide to achieve board certification as a bankruptcy attorney.

Call 800.611.5126 for a free consultation

No fee, no obligation. Just free advice.  Peter can talk with you about your debt problem and offer valuable advice — at no cost to you.

Fill out the above form or call 800.611.5126 to schedule a free case evaluation today.

The Federal Loan Modification Program

Here are six important things any homeowner needs to know about the federal loan modification program:

  1. Monthly Payments — President Obama's loan modification plan focuses primarily on the concept that Americans will continue to pay their mortgages so long as they can afford the monthly payments.  This means that rather than focusing on the value of the home, loan modifications focus on lowering the amount of the monthly payment.

  2. Thirty-One Percent - The plan calls for participating loan servicers (lenders) to reduce monthly payments to no more than 38 percent of the borrower’s gross monthly income.  Meaning, if the person’s monthly income is $10,000, then the monthly payment cannot be more than $3,800.  The government would then chip in to further bring the monthly mortgage payments down to no more than 31 percent of the borrower’s monthly income.

  3. Cash Incentives – Loan processors are being paid $1,000 for each loan modification and will get an addition $1,000 payout each year for as much as three years as long as the borrower continues making payments.  Borrowers can also get up to $1,000 knocked off of the principal of their loan each year for as many as five years if their payments are made on time.

  4. Financial Hardship – The plan is designed for responsible homeowners who are ensnared by the current housing slump and the proceeding recession.   Only owner-occupied homes which are the primary residence with an outstanding principal balance of less than $730,000 are eligible.

  5. Net Present Value – In order to determine if a mortgage is eligible for a loan modification, the loan servicer must perform a “net present value” test which compares the expected cash flow the loan would generate if it is modified with the expected cash flow it would generate if it was not modified.

  6. Second Mortgages and Equity Loans – The federal loan modification plan addresses the issue of second liens, such as home equity loans and home equity lines of credit, by offering special incentives to eliminate them.

Learn more about loan modifications

Explore all the options to avoid foreclosure

Find out if a loan modification can save your home. Call Peter at 800.611.5126 for a free consultation to see if you qualify.