Update for Mortgage Modifications! Many FHA-insured borrowers have faced significant obstacles to obtaining a mortgage loan modification, where their loan involves a co-borrower and the co-borrower is unavailable. Mortgage servicers have generally allowed a mortgage modification only where the absent co-borrowers execute the loan modification agreement. But that may, as a practical matter, be impossible because death, divorce, separation, domestic violence or other significant life events involving the co-borrower. A June 29 update to HUD’s Single Family Housing Policy Handbook, 4000.1 (June 29, 2022), effective September 26, 2022, clarifies that FHA does not require unavailable co-borrowers to execute FHA mortgage loan modification agreements. This is an important policy clarification that should help borrowers more easily access alternatives to foreclosure.
Nassau Suffolk Law Services assists eligible homeowners to prevent foreclosure, through loss mitigation options and/or legal challenges by providing: advice and counsel, limited assistance at settlement conferences, pro-se pleadings and motions, full representation, and possible appeals, and/or help with loan modification paperwork. Suffolk residents can call 631-232-2400. Nassau residents can call 516-292-8100.
All of our offices are now open to the public and accepting walk-ins.