Our office was one of the first law firms to offer loan modification assistance in the State of New Jersey. We have been helping clients save their homes that were in foreclosure or pre-foreclosure dating back to the Subprime Mortgage Crisis. The initial program that was a part of the Emergency Economic Stabilization Act of 2008 was known as the Hope for Homeowners Program and was designed to allow homeowners to refinance their mortgages to more affordable fixed-rate loans. Unfortunately, due to lack of incentives provided to lenders, most of the efforts at that time proved unsuccessful.
As a response, the Home Affordable Modification Program (HAMP) was introduced in 2009 by the Federal Government, which in conjunction with legal action and later settlement with the five largest banks, finally resulted in the participation and issuance of loan modifications by mortgage lenders.
Additionally, the State of New Jersey created the Foreclosure Mediation Program, which required mortgage lenders to participate. The program also provided HUD counselors to homeowners, free of charge, to assist in the preparation and negotiation of loan modification applications. All of these factors contributed to a substantial increase in the number of loan modifications issued during such period of time.
Unfortunately, the New Jersey Foreclosure Mediation Program was defunded and HAMP expired at the end of 2016.
Despite this significant blow to homeowners, mortgage lenders continued to issue loan modifications that were processed in house and an alternative program arose in the context of the Bankruptcy Courts. This “Loss Mitigation Program” allowed debtors the opportunity to pursue loan modifications with Court supervision while in a Bankruptcy, rather than being forced to sell their homes or pursue more alternative repayment options.
The application process requires strict compliance and often leads to a denial for even a small misstep or omission. Many clients who have attempted the process alone fail to obtain loan modifications as a result of these strict date and documents requirements.
Thankfully, our firm has had tremendous success in obtaining loan modifications through these new avenues, allowing clients to both keep their homes and obtain modified mortgages, generally at a lower interest rates, with longer terms and on occasion, with either deferment or forgiveness of substantial amounts of money.
Given the number of years that this firm has represented clients through every phase and program offered homeowners over the past few decades, we can assist in navigating you through the maze that is the loan modification process. If you are having difficulty keeping up with your mortgage, please contact our office at
(732) 292-9288
today.