Loan Modification Lawyer New Jersey

You might wish to speak with a New Jersey loan modification lawyer if you want to change the conditions of your mortgage loan. You might be able to keep your house if you get a mortgage modification. It is a modification to the house loan repayment conditions that lowers your monthly payment.

Common Methods to Modify a Mortgage

The main goal of a mortgage loan modification is to avoid foreclosure. Mortgage lenders may use several methods to modify a mortgage, including:

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  • Extending repayment period. Your monthly payments will be cheaper the longer it takes you to pay off your mortgage loan. You should be aware, though, that extending your repayment period can result in you eventually paying a higher interest rate.
  • Reduce the principal portion of the loan. You might have a significant amount of equity in your house if the lender can reduce the principal amount of your mortgage loan in certain circumstances.
  • Lower interest rate. This is yet another typical mortgage modification strategy. Your monthly payments may be considerably lower if your lender reduces your interest rate.
  • Convert to a fixed interest rate. To help you better manage your payments if you already have an adjustable-rate mortgage, your lender might think about switching it to a fixed-interest rate.

New Jersey Loan Workout and Home Loan Modification Attorney

Remember that you have options if you own a home and are about to lose it to foreclosure because you are behind on your mortgage payments. One of those options is not to file a Chapter 13 bankruptcy case. A better option for you may be to file for a home loan modification and work with an experienced mortgage modification attorney.

Your mortgage servicer has hired an attorney and started a legal process to seize your house once your loan has entered the foreclosure phase. As a result, you must also retain a foreclosure defense lawyer that is experienced in mortgage modification in order to advocate your interests and safeguard your property.

Because they engaged with a mortgage servicer and believed that the foreclosure process had ended when in fact it had not, thousands of Americans have lost their homes. You must retain legal counsel if the creditor attempting to seize your home has done so.

How to Qualify for a Loan Modification

Contact a loan modification lawyer like Kristen E. Johnson, Esq. if you want to find out if you are eligible for one. A knowledgeable New Jersey loan modification lawyer can evaluate your circumstances and determine if you might be eligible for a loan modification or not. You must typically be at least one mortgage payment behind and provide proof of a serious financial difficulty, such as the death of a loved one, a protracted illness, or a divorce.

How Loan Modification Can Impact Your Credit Rating

You might be concerned about how a loan modification will impact your credit score if you’re thinking about it. Your credit rating can suffer as a result of the lenders frequently reporting your loan modification to the national credit agencies. It’s crucial to understand that this will have a less negative effect on your credit score than a foreclosure. Over time, you’ll have the chance to rebuild your credit.

How Long Do I Have To File a Mortgage Modification Application?

Federal non-bankruptcy legislation mandates that if you submit a comprehensive home loan modification application 37 days prior to a foreclosure sale, the foreclosure process must halt while your mortgage servicer examines the modification application. It is crucial that you get in touch with Kristen E. Johnson, Esq. as away to start the modification process.

Since New Jersey is a non-judicial foreclosure state, the lender can foreclose on your house without ever seeking a judge’s approval for the majority of home loans. Contacting a lawyer knowledgeable in bankruptcy law and foreclosure defense tactics is essential because the foreclosure process can move quickly in New Jersey. Over the past 20 years, Kristen E. Johnson, Esq., has represented people just like you.

By obtaining home loan modifications on their behalf, Kristen E. Johnson, Esq. has helped her clients escape the unneeded five-year wage and federal income tax refund garnishment that is essential for clients who file a Chapter 13 case to save their houses. She is proud of the creative method her law company uses to help clients keep their homes without having to file a Chapter 13 petition.

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How Loan Workouts or Loan Modification Differs from Refinancing

The words “refinance” and “loan modification” are sometimes used interchangeably. Nevertheless, they are distinct. You can refinance your current mortgage loan to replace it with a new one that doesn’t harm your credit and has a cheaper interest rate or a longer term.

Those who are struggling financially, however, could not be eligible for refinancing due to their bad credit or low income. The homeowner may only be eligible for a loan modification in these circumstances.

If you have any additional inquiries regarding loan modifications, you should contact a New Jersey loan modification lawyer right away to schedule a consultation and go over the specifics of your situation.

Common Misconceptions About Loan Modification

A New Jersey loan modification attorney may be able to help you if you are having financial difficulties making your mortgage payments. You might be eligible for a loan modification, which can alter one or more conditions of your current loan. Here are a few widespread myths concerning loan modifications that you should reject.

  • I must be late on my mortgage payments to qualify for loan modification. Even though it could be more challenging, it is not impossible, to get accepted for a loan modification when you are current on your payments. Regardless of whether your financial situation is dire because of a job loss or a divorce, you must prove it.
  • If I file for bankruptcy, the lender will not modify my loan. If you have a lot of debt, you might be considering declaring bankruptcy. However, you could be concerned that if you file, your lender won’t change your loan. The good news is that getting your loan adjusted may still be possible even after filing for bankruptcy with a New Jersey loan modification attorney. If you keep making the agreed-upon installments, your loan modification might be accepted.
  • If I have poor credit, I’m not eligible for a loan modification. Unfortunately, several homeowners who have bad credit are hesitant to request a loan modification. They believe they won’t be accepted. Your loan adjustment will not be impacted by your credit score. On the other hand, if you applied for refinancing, a credit check would be required.
  • I will get my principal reduced no matter what. It’s not a guarantee, but you might be able to get your principal lowered.
  • If I can’t afford my mortgage, I should not apply for a loan workout. You might not be able to pay your mortgage if you earn little to nothing. However, it can be worthwhile to file for a loan modification if your present salary is sufficiently close to what you need to be able to afford your monthly mortgage payment. For the time being, you might be able to find a second employment to meet the requirements for a loan modification.
  • If the bank rejected my loan modification application, that is it. You might suppose that you need to look at alternative possibilities if the bank rejected your initial application. You might be interesting to know, though, that the majority of initial loan modification requests are turned down. The fact that your application was turned down the first time does not need you to give up. For instance, you might be able to prove income that you don’t record to the IRS, like rent you receive from family members, if your application was rejected because it was too low. Even a small amount of more income each month could be helpful in getting your application approved.

What Is Included in a Home Loan Modification?

Kristen E. Johnson, Esq. asks for a reduction in the interest rate and an extension of the loan’s duration so that missing payments can be made up over a longer time period and at a lower interest rate.

Other changes include adding the note’s missed payments at the end. This is a much more practical way to make up for missing mortgage payments and allow customers to keep their houses. A five-year Chapter 13 wage and income tax refund garnishment case would be considerably worse than this.

Work With an Experienced NJ Mortgage Modification Attorney

Clients in New Jersey have received support from attorney Kristen E. Johnson, Esq. during difficult times. Kristen has 20 years of expertise and is an expert in bankruptcy, foreclosure defense, and home loan modification. She is aware of your struggles and those of your family. She can clarify your options and assist you in better understanding your circumstance.

A New Jersey loan modification attorney with a solid reputation for representing clients should be contacted if you require legal advice on your mortgage issue.

How a Home Loan Modification Lawyer in Central New Jersey Can Help

If you are considering a home loan modification, talk with a lawyer about your options. Kristen E. Johnson, Esq. can review your case, explore your options, and help you move forward.

As a home loan modification attorney, Kristen can help you by:

  • Avoiding foreclosure
  • Avoiding a Chapter 13 bankruptcy
  • Advising you on the law and your rights
  •  Explaining the repayment terms proposed on a successful home loan modification application 
  • Explaining, completing, and delivering a complete home loan modification application to your mortgage servicer
  • Gathering the documentation to build the strongest case possible
  • Appealing wrongful denials of requests for home loan modifications

These are just a few of the ways a lawyer who specializes in home loan modifications might benefit you. A lawyer might be able to assist you in your efforts to prevent foreclosure and maintain ownership of your house.

Talk to a Home Loan Modification Lawyer Now

You are not alone if you are having trouble making your mortgage payment. Millions of Americans are just one paycheck away from losing their homes or businesses to foreclosure. The 2008 mortgage crisis caused many families to struggle, and our firm’s founding attorneys successfully offered financial assistance. Keep your mortgage payments current if you want to achieve financial freedom. In order to help you bring your mortgage current and eventually save your house, we want to identify the best solution.

Call 732-477-4921 or Contact Kristen E. Johnson, Esq. to consult an experienced NJ mortgage NJ loan modification attorney today.