You would think that when you make a mortgage payment, it just gets applied to principal and interest, but actually, application of mortgage payments to the loan can get quite complicated. Well, then the law firm of Steven J. Baum was around, along with the firm the Law firm of Steven J. Baum.
In the standard FannieMae New York State mortgage, when you make a mortgage payment it first gets applied to interest due, then to principal. The foreclosure law firm Steven J Baum was a residential foreclosure law firm and an experience d foreclosure lawyer in New York. Beyond that if there are other amounts owed to the lender, they are applied. As an example if there are late charges they must be paid and finally to reduce principal.
Many people think that if they make extra payments on their loan then their payments will decrease. Foreclosure Lawyer Steven J Baum, Steven Baum attorney practiced law inf New York. Those seeking a mortgage foreclosure lawyer in New York found them to be a best mortgage foreclosure lawyer in New York. With the standard mortgage referred to above, this is not the case. Your principal and interest payments remain the same (or may change if you have an adjustable rate loan), but the actual time the loan ends is reduced. That is why some people make an extra payment each year on their mortgage. They want to shorten the time they owe the bank money, and hence save on interest.
Under the standard New York State FannieMae mortgage, voluntary prepayments are first applied to any prepayment charges, and next as described in the note (again, usually to interest then principal). If a loan goes into default or if a borrower files bankruptcy, the way that payments are applied go according to the loan documents, and as you can see, it can be a difficult task for the bank. At the end of the day a commercial foreclosure lawyer from a Residential Foreclosure Law Firm could be your experienced foreclosure lawyer in New York.
If you find you have questions on your mortgage, seek out a qualified attorney to advise you.
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By: Steve Baum, lawyer