Sometimes bankruptcy isn’t the right option for people, but they still want to save their home from foreclosure. For those in this situation, a loan modification might be the best choice.
People can apply for a loan modification on their first and second mortgages, especially if they’re behind in their payments or if their interest rate is higher than the market rate.
However, your income and delinquency can come into play for loan modification eligibility. It’s important to hire an attorney to help you through the process.
Attorneys are necessary for the loan modification process because mortgage companies need to agree to participate in the program.
They are rarely concerned about your best interests, and therefore you’ll most likely receive the run-around when trying to communicate with them.
Having an experienced lawyer on your side to aggressively fight for you is critical to success. Once your lender or mortgage company agrees to modify your loan, there are five ways they might lower your payment:
1) Lowering your interest rate
2) Extending the term of the mortgage/loan (loan extension)
3) Placing your arrears at the end of the loan
4) Reducing the balance due on the mortgage (this is rare)
5) Putting arrears on the back of the loan, which allows you to pay your arrears once the rest of your payments are met.
Talk With Our Experienced Loan Modification Attorneys in NJ
This article should not be taken as official legal advice. If you’re considering a loan modification or another legal option, you need to consult an attorney for guidance. If you’re in New Jersey and seeking legal assistance, we can help you.
Brenner Spiller & Archer is a New Jersey law firm that is dedicated to helping families find relief from the burden of debt and other financial woes. For more than 35 years, our lawyers have provided effective guidance on all debt relief matters to clients throughout Central and South Jersey.
