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Northern And Central New Jersey Mortgage Loan Modifications And Foreclosure Mediation Attorneys

Q: How does a mortgage loan modification differ from just refinancing a loan?

Mortgage loan modification changes the terms of an existing loan to make payments more affordable. With lender approval, homeowners may lower the interest rate, extend the loan term, add missed payments to the balance, or adjust the mortgage rate. Loan modifications are often offered to homeowners facing temporary or unique financial hardships. Refinancing, on the other hand, replaces the existing loan with a new one. Homeowners usually need good credit and stable income to refinance, and it often involves additional fees and costs. An attorney can help evaluate whether you qualify for a mortgage loan modification and assist with the application process.

Q: When can you apply for a mortgage loan modification?

Mortgage loan modifications are generally available to homeowners experiencing significant financial hardship, such as job loss, disability, serious illness, or the death of a spouse. In many cases, homeowners must already be delinquent on their payments or at risk of imminent default. The property typically must be the homeowner's primary residence, and the applicant must show they can afford the modified payment terms.

Q: Can I apply for a loan modification after a foreclosure starts?

Some lenders may allow homeowners to apply for a loan modification even after foreclosure proceedings have begun. However, there are often strict deadlines, and the foreclosure process can limit available options. Speaking with an attorney as soon as possible can help you understand your rights and explore potential solutions.

Newark, New Jersey, Bankruptcy Lawyers

In tough economic times, mortgage foreclosures increase. The result is significant pain and hardship for all Americans. Most people, when they learn they may lose their home, do not know what to do or where to turn.

Bankruptcy As An Option

One option is bankruptcy. Either Chapter 7 or Chapter 13 bankruptcy can stop foreclosure actions immediately and give you time to figure out what to do. In some cases, you may be able to keep your house by becoming current with your mortgage payments. In others, you may be able to modify the loan so that you can continue to make payments and keep your house.

Loan Modification

The loan modification process involves changing the terms of your mortgage loan so that you can afford to continue making payments. This is most often achieved by significantly reducing the interest rate.

Loss Mitigation Program

The United States Bankruptcy Court for New Jersey has instituted a Loss Mitigation Program (“LMP”) which functions as a forum for debtors and lenders to discuss mutually acceptable alternatives to foreclosure. Possible resolutions include, but are not limited to, loan modification, loan refinance or forbearance. The terms of a loss mitigation solution will vary in each case according to the particular needs and goals of the parties. The LMP encourages the parties to finalize a feasible and beneficial agreement with the assistance and supervision of the Bankruptcy Court.

Our office has been successful in obtaining loan modifications during our clients’ chapter 13 bankruptcy cases. Our advocacy has resulted in substantial interest rate reductions allowing our clients to reduce their monthly mortgage payments. This has allowed our clients to save their homes where they may not have been able to otherwise.

Foreclosure Mediation

Since we know what it takes to obtain loan modifications, we are also taking that experience and are now assisting our clients in their application for participation in the state court foreclosure mediation process.

Outside of bankruptcy, the New Jersey State Courts have a mortgage foreclosure mediation process through which eligible homeowners can pursue possible loan modifications and other resolutions. We will assist you in completing the forms.

We will assist you in completing the forms necessary to participate in the mediation program. We mail the documents to the court and await a mediation hearing date. Our representation does not end there. We attend the mediation hearing with you and diligently and aggressively fight to obtain the best results.

Frequently Asked Questions About Mortgage Loan Modifications And Foreclosure Mediation

What are the benefits of mortgage loan modifications? Should you seek foreclosure mediation? At Goldman & Beslow, LLC Attorneys At Law, we aim to demystify the options you have to protect your home in difficult financial situations. Here are some answers to frequently asked questions:

How does a mortgage loan modification differ from just refinancing a loan?

Many people struggle to keep up with mortgage payments in difficult economic times. When this happens, they may seek loan modifications or refinancing. However, it is important to understand the different purposes of loan modification and refinancing, and learn about how they can serve you.

Mortgage loan modification is a change to an existing loan to make it more affordable. With approval from a lender, you can lower your interest rate, extend the loan term, add missed payments to the loan balance and adjust your mortgage rate. Loan modifications are often offered to homeowners facing temporary or unique financial hardships.

Unlike mortgage loan modifications, refinancing replaces an existing loan. Homeowners are typically only eligible for refinancing if they have good credit and a stable income. However, there are often additional costs and fees to refinancing a home.

Our attorneys can help evaluate whether you are eligible for a mortgage loan modification and learn how to obtain one.

When can you apply for a mortgage loan modification?

Mortgage loan modifications are generally for homeowners who are facing significant long-term financial hardships that are unavoidable, such as those due to a job loss, a spouse’s death, disability or a serious illness.

Typically, to qualify for a loan modification, homeowners must be either already delinquent on their payments or in danger of imminent default on their loan. The home must also be the applicant’s primary residence, and the homeowner must be able to show that they will be able to afford the new payment agreement.

We can help you understand if a loan modification will benefit you and provide the bank with the information they need to approve the modification.

Can I apply for a loan modification after a foreclosure starts?

Some lenders will allow homeowners to modify a loan even if foreclosure has started. There are often strict deadlines for applying for a loan modification, however, and a foreclosure can make it harder to meet these. If you are facing foreclosure, speak to an attorney promptly to better understand your rights and preserve your options.

Elimination Of Second And Third Mortgages

We have also helped many clients eliminate second and third mortgages through bankruptcy. We have helped many occupants of multifamily housing units reduce the balances on their mortgages through bankruptcy.

While no one can guarantee that you will obtain a modification or other workout, we will help you through the complex and often frustrating process of working with your lender to help you get the best result possible. We have a wealth of experience to share regarding how bankruptcy may offer solutions allowing you to stop foreclosure and protect your real estate investments.

Click here for information regarding state court foreclosure mediation.

* PLEASE NOTE that foreclosure mediation does not automatically stop a sheriff’s sale.

Call or email Goldman & Beslow, LLC Attorneys At Law, for more information regarding your New Jersey mortgage and bankruptcy.