Loan Modification Attorney Serving Long Island and Nassau County
A loan modification restructures your existing mortgage to make the monthly payment manageable — without refinancing, without selling, and without losing your home. Banks are legally required to negotiate in good faith with homeowners facing foreclosure in New York. What they are not required to do is respond quickly, process applications correctly, or pick up the phone when you call. That changes when an attorney is involved.
Aronow Law P.C. has represented Nassau County and Long Island homeowners through the loan modification process for 23+ years.
Banks Must Negotiate in Good Faith Under New York Law • Banks Must Negotiate in Good Faith Under New York Law CPLR 3408 Mandatory Settlement Conferences Compel Lender Compliance • Attorney Representation Reduces the Paperwork Runaround Significantly • Modification, Short Sale, Litigation, and Chapter 13 All Available if Needed • Free Consultations With No Time Limit
Banks Must Negotiate in Good Faith Under New York Law • Banks Must Negotiate in Good Faith Under New York Law CPLR 3408 Mandatory Settlement Conferences Compel Lender Compliance • Attorney Representation Reduces the Paperwork Runaround Significantly • Modification, Short Sale, Litigation, and Chapter 13 All Available if Needed • Free Consultations With No Time Limit
What the Florida Divorce Process Looks Like
Understanding how agreement—or conflict—shapes the process.
Filing Chapter 7 stops a wage garnishment immediately through the automatic stay. But if the garnishment stems from a judgment creditor, the underlying judgment remains on the record until it is formally avoided or discharged. Aronow Law handles the full resolution — not just the filing.
For clients carrying student loans alongside dischargeable debt, Aronow Law assesses both in a single engagement. Federal student loans survive Chapter 7 in most cases, but filing can still provide meaningful relief by eliminating all surrounding unsecured debt and freeing up income to address loans directly. In some cases, an adversary proceeding for hardship discharge of student loans may also be worth evaluating.
If you have a suspended vehicle registration alongside your debt issues, that can also be addressed as part of the same engagement.
What Chapter 7 Cannot Discharge
What a Loan Modification Is — and What It Is Not
A loan modification is a permanent change to the terms of your existing mortgage agreement, made with your current lender, designed to reduce your monthly payment to a level you can sustain. The modification can take several forms depending on what the lender agrees to and what your financial situation supports.
Common modification outcomes include:
- A reduction in the interest rate, temporarily or permanently
- An extension of the loan term, which spreads the remaining balance over more years and reduces the monthly payment
- Capitalization of arrears, which folds missed payments into the outstanding principal rather than demanding them as a lump sum
- A temporary or permanent payment deferral on a portion of the balance
A loan modification is not a refinance. You are not taking out a new loan or working with a new lender. The existing mortgage remains in place — with changed terms. It is also not forbearance, which is a temporary pause on payments that must eventually be repaid. A modification changes the terms permanently and creates a new payment obligation the lender is contractually bound by.
Why Homeowners Who Apply Without an Attorney Get the Runaround
The pattern is consistent across clients who come to Aronow Law after attempting a modification on their own. The application is submitted. The bank confirms receipt. Weeks pass. A representative calls requesting the same documents that were already submitted. The process resets. Months go by. A foreclosure date is scheduled.
This is not accidental inefficiency. Loan servicers — the companies that manage mortgage payments on behalf of lenders — operate with high case volumes and no legal obligation to move a modification application forward within any specific timeframe when a borrower is acting alone. There is no consequence for delay, repeated documentation requests, or unexplained denials when the borrower has no legal representation.
That calculus changes when an attorney submits the application and references the CPLR § 3408 mandatory settlement conference process. The lender is now communicating with an attorney who understands the legal obligations the statute imposes, who can compel court-supervised negotiation, and who can seek sanctions for bad faith conduct. That is a different conversation than a borrower calling a servicer's loss mitigation department.
How the CPLR 3408 Process Strengthens a Modification Application
In every residential foreclosure in New York, CPLR § 3408 requires the lender and the homeowner to participate in a court-supervised mandatory settlement conference. These conferences are held before a judge or court-appointed referee, and lenders are required to appear, respond to modification applications, and negotiate in good faith.
The court can impose sanctions on a lender that fails to comply — including adverse rulings in the foreclosure itself. This is not leverage a borrower can create on their own. It is leverage built into New York's foreclosure statute, and it only becomes available once legal proceedings are underway.
Aronow Law uses the mandatory settlement conference process to hold lenders to documentation timelines, compel substantive responses to modification applications, and — when lenders act in bad faith — raise that conduct before the court. Homeowners represented by an attorney in this process are in a materially different position than those who are not.
Loan Modification vs. Short Sale:
How to Know Which Fits
Not every homeowner who contacts Aronow Law about a modification is in a situation where modification is the right outcome. The evaluation depends on two things: whether the homeowner wants to keep the property, and whether the modified payment is one they can realistically sustain.
If keeping the home is the goal and the homeowner has income that can support a restructured payment, a loan modification is typically the first strategy pursued. If the homeowner owes significantly more than the property is worth, has income that cannot support even a modified payment, or has made the decision to exit the property, a short sale often produces a better outcome — avoiding a foreclosure judgment, resolving the deficiency, and allowing the homeowner to move forward without a foreclosure on the public record.
Aronow Law evaluates both options at the outset and recommends based on the facts of each situation, not on a default preference for one tool over another.
When Modification Is Not Enough: Chapter 13 as a Backup Strategy
In some cases, a loan modification application is denied — or approved too late to prevent a foreclosure date from being set. Chapter 13 bankruptcy is available as a parallel or follow-on strategy. Filing Chapter 13 triggers an automatic stay that immediately halts the foreclosure, then allows the homeowner to cure mortgage arrears through a court-supervised repayment plan over three to five years.
For homeowners whose modification was denied based on income that could actually support a restructured payment — a denial that occurs more often than it should — Chapter 13 can produce the same functional outcome the modification would have, with the backing of a federal court order rather than a lender's discretion.
Sometimes, a loan modification is the wrong decision for the homeowner. If you have an interest rate of 2 to 4% and get a new modified offer for 5 to 7% interest, then you probably should decline the offer and file a Chapter 13 where you keep your low interest rate over the balance of the 30 year mortgage term.
Aronow Law handles both loan modifications and Chapter 13 filings. Clients do not need to find a separate attorney if the strategy needs to shift.
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Best Decision I made was to call Aronow Law and I received the Best Outcome!! Malini is an outstanding advocate for those navigating the legal system. Knows her stuff. Aronow Law provided swift problem free assistance. My experience working with this firm has been awesome. So very thankful. Would tell everyone to call Aronow Law if you are in need of legal services. You'll be very happy you did.
Kobin W.
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This law firm is the best !! I can’t express how above and beyond they went to help. My grandmother saved her house ! Because of them a house she’s been in since she was a baby is now hers to keep and she’s 80 years old….. They went above and beyond answering any questions although we got frustrated at times they never ever disrespected us and keep to professional always !!! Thanks so luv from the Campbell family :)!
Nanamilan2010
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Best decision I ever made. They did an amazing job helping me through this process always answering my questions and helping me through every single step along the way explaining everything to mean. If you are ever looking for an attorney to represent you in the bankruptcy process, he is the one.
Merlo M.
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Aronow Law did an amazing job handling my bankruptcy case. They not only made the entire process smooth and stress-free, but they also went above and beyond by getting my EZPass tolls discharged—something I didn’t think was possible. Thanks to their incredible work, the suspension on my vehicle registration was lifted, and I was finally able to get back on the road. Highly recommend them!
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Frequently Asked Questions About
Loan Modifications in New York
How do I get a loan modification in New York?
The process begins with a formal application to your loan servicer that includes a hardship letter, financial documentation, and supporting materials showing your current income and expenses. Lenders review the application against their modification program guidelines and — in foreclosure cases — are required to negotiate through the CPLR 3408 mandatory settlement conference process. Working with an attorney from the start of the application process significantly reduces the documentation delays and unexplained denials that borrowers routinely encounter when applying on their own.
Can an attorney help me get a loan modification New York and Nassau County?
Yes — and the difference attorney representation makes in this process is substantial. An attorney submits the application through legal channels, participates in mandatory settlement conferences on your behalf, compels documented responses from the servicer, and raises bad faith conduct before the court when lenders do not comply. Homeowners who apply without an attorney have no mechanism to enforce the lender's good faith obligation. Homeowners with an attorney do.
What is the difference between a loan modification and a short sale?
A loan modification keeps you in the home by restructuring the mortgage terms. A short sale ends your ownership of the property by selling it for less than what is owed, with the lender's agreement to accept the proceeds and, in most cases, forgive the remaining balance. Modification is the right tool when the goal is staying in the home and the income exists to support a restructured payment. A short sale is typically the better option when the property is underwater, keeping it is not the goal, or the income cannot support even a reduced payment.
What happens if my loan modification is denied?
A denial is not necessarily the end of the road. The denial can be reviewed for procedural errors or bad faith conduct by the lender. A new application may be appropriate if your financial circumstances have changed. And if modification is genuinely not available, other strategies — including a short sale, foreclosure litigation, or a Chapter 13 bankruptcy filing — remain on the table. Aronow Law evaluates the denial and recommends the most viable next step based on the specific reason for the decision.
Additionally, if you get a “trial” offer for a loan modification, and then file Chapter 13 immediately, then the lender will have to accept the trial payment.
Stop Resubmitting. Get Representation
That the Bank Has to Respond To.
If you have been going in circles with your loan servicer — resubmitting the same documents, waiting weeks for a response, watching the foreclosure clock run — legal representation is the most direct way to change that dynamic. Aronow Law serves Nassau County and Long Island homeowners from the firm's Woodbury, NY office. The consultation is free and has no time limit.
