Answering the Economic Crisis: New York Loan Modification

Loan modification is truly something that everyone would love to get. Even in New York loan modification is becoming a catch phrase. This is no surprise because so many people in the state of NY are affected gravely by the recession. What is more prevalently needed in New York right now is actually commercial modification of loans. This is because the city has a record amount of property (compared to other U.S. states) and infrastructure loaned out to businesses. Businesses that had previously been earning a lot in the city have now been flailing. Because of this, New York businesses can no longer afford to pay their mortgage all because of the recession caused by the crash of Wall Street and the mortgage blowout.

The mortgage blowout affected a lot of states. Some of the hardest hits were California and Nevada. New York was also hit especially since it is the site of the spectacular stock market crash. How sad a time this was for a lot of New Yorkers who were also still picking up the pieces from the last great tragedy of 9/11. This was the inevitable follow through of the 9/11 tragedy. So many New Yorkers lost their precious life giving jobs. What is there to life now that you do not have shelter and anything to feed your family with? No income. This is the fate that was befallen so many stock market brokers who gambled their whole savings, and more to the stock market. And when it all fell down, there was nothing left of these people’s lives but rubble.

The housing blowout made the people realize a certain lesson. Putting risk aside when giving out loans can yield catastrophic results. Banks were giving mortgage loans left and right and as a result, the real estate and construction industry produced more and more. What happened was that the economy got ahead of itself. Finally it all caught up and the recession happened.

What is loan modification? This may be the question that pops up in many people’s minds like a dove from a magicians’ hat. And it may just be as mysterious. But the truth is, a modification of one’s housing or commercial mortgage loan is fairly simple and easy to understand. Basically, banks and lenders can no longer support the bulk of foreclosures they are receiving. It is easier for them to simply help out the homeowners by changing the terms and conditions of their mortgage notes to make the mortgage more affordable. Changes can include but are not wholly limited to decrease or removal of interest rates, lowering of monthly payments, creation of extensions and grace periods, etc.

Now the concept may be simple, but the process may be a bit more difficult. The government is doing its part in order to make the process easier for those who need to apply. Just recently, a bill was passed that will allow a ninety day time line for New York loan modification. This is a big help to New York homeowners as well as commercial business establishment owners in danger of foreclosure alike.