Loan Modification

In some cases, the property owner wishes to remain in possession of the property, but can no longer afford loan payments as they may be structured.  Given the lengthy and costly process of foreclosure, banks are sometimes willing to modify the loan arrangement, either temporarily (called a “forbearance”) or permanently.  In light of the new federal T.A.R.P. legislation (Troubled Asset Relief Program), you may find that lenders are more willing to negotiate a modification as they become inundated with foreclosure situations and requests for short sale approvals.
 
State Mediation Program

If your lender has already begun the foreclosure process and you have been served a summons and complaint in foreclosure, the state of New Jersey offers homeowners a mediation program for residential dwellings (mediation is not available to owners of any other types of properties).  Mediation is basically court-ordered modification whereby your lender is required to sit down with you and make their best efforts to modify your loan to something you can afford.  Just like the regular modification process, the lender does not have to agree to modify your mortgage.  You also will be required to provide financial information, as well as proof of income, to avail yourself of the mediation process.  If you are not currently employed, mediation will not be available to you until you obtain new employment.

You can avail yourself of mediation at anytime during the foreclosure process, even as late as the day your property is schedule for auction at sheriff's sale.

With extensive experience in both the loan modification and state mediation process, we have achieved very successful results for our clients (results are, of course, not guaranteed).  So if you'd like to stay in your home, but just cannot afford to do so, call us right away for a free consultation.