Dubiln Packard

Foreclosure

Everything you need to know about

Foreclosure

  • Foreclosure Defense
  • Loan Modification

and your options to purchase, refinance, sell, liquidate, surrender, or foreclose your property in the State of New Jersey.

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Can I Apply For A Loan Modification After A Bankruptcy?

Apply for loan modification after bankruptcy Have You Filed Bankruptcy, And Are You Wondering, “Can I Apply For A Loan Modification After A Bankruptcy?”

The answer is yes. You can still apply for a loan modification after a bankruptcy. Sometimes using a bankruptcy and loan modification in combination with one another can achieve the most desirable outcome in helping you save your home from foreclosure. This is especially true if you could not get approved for a loan modification before filing for bankruptcy. It is likely that trying to get a loan modification was your first course of action, but for whatever reason, your application was denied. Then you filed for bankruptcy. The wonderful thing about bankruptcy is that once you file, you can then (re)apply for a loan modification with better chances of being approved for one.

Why Should I Apply For A Loan Modification If I Already Filed For Bankruptcy?

A bankruptcy opens up the possibility of getting a loan modification if you couldn’t obtain one the first time around. More importantly, a loan modification can adjust the terms and payments of your bankruptcy and make it more reasonable.

If you want to learn about how to get a loan modification, read our post: How To Get A Loan Modification.

Or, if you are interested in finding out how a bankruptcy works to save your home, read our post: How Does Bankruptcy Help Save My Home In Foreclosure In New Jersey?

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Why Should I Act Fast In Applying For A Loan Modification?

loan modification act fastDon’t Wait! Why Should I Act Fast In Applying For A Loan Modification?

A fundamental mistake most people make is not to apply for a loan modification as quickly as possible.  You must act fast  in applying for a loan modification to save your home.  It becomes apparent when you understand how a loan modification works. A loan modification takes your missed payments and rolls them into your future payments; then you arrive at a new monthly payment, which is usually lower than the original amount because the loan typically has a lower interest rate and a longer term. The more missed payments, the harder it is to be approved.

You probably know that it takes many months in New Jersey for the foreclosure process to progress from Complaint to Sheriff Sale, but don’t let this time-frame let you think you can wait to apply.  Don’t Wait!

If you want to find out the 2 biggest pitfalls when trying to get a loan modification, read our post: Two Biggest Reasons People Fail To Get A Loan Modification.

So Why Should I Act Fast?

A loan modification is the best option for those looking to save their homes, it gives you the best outcome. But, the longer you wait, the more mortgage payments you miss. As a result, when your application is analyzed, the more payments you have missed makes the new monthly payments higher, and this makes it harder to be approved.

Loan modifications can take a long time to begin with, to increase your chances of getting approved for one, it is smart to get started on the process ASAP if you think you may qualify.

To find out if you qualify for a loan modification, read our post: Will I Qualify For Loan Modification?

And, if you think you qualify and want to know how loan modifications work, read our post: How To Get A Loan Modification. 

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Why Are Loan Modifications Frustrating?

Home loan modification frustratingIs Your Lender Constantly Giving You The Runaround…Why Are Loan Modifications Frustrating?

There are a million and one reasons why getting a loan modification can be the most frustrating endeavor ever. We hear it constantly, “I keep sending my documents into the bank over and over again and they tell me they lost them, ask for the same document over and over, and then ask for additional documents. Then, I get denied and they won’t tell me why.”

The unfortunate truth of the matter is the loan specialists you work with idon’thave any authority and you hardly ever speak to the same person twice, leading to confusion and misunderstanding.  There are a lot of different processes going on in the background when you send your documents in to the bank, it can be frustrating to understand why your application keeps getting denied, or why the process is taking so long.

Common Complaints About Getting A Loan Modification

  1. Your bank won’t stop pestering you for the same documents repeatedly
  2. You keep faxing the bank the same documents
  3. You reach a different agent every time
  4. The agents all tell you conflicting information
  5. You’re spending hours on hold, to get nowhere
  6. Your lender isn’t responding to you
  7. Your application was denied, even though you qualify
  8. The bank lost your documents
  9. Your bank keeps transferring you between different departments every time you call

End The Struggle – Get Your Loan Modification

There are basic things you must know in order to have a good shot at getting your home loan modification application approved. To discover how to get a loan modification, read our post: How To Get A Loan Modification.

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Why Is Loan Modification The Best Tool?

home loan modification best toolWhat Makes Loan Modification The Best Tool?

Why is Loan modification The Best Tool? It is one of the essential tools for saving your home from foreclosure, and is the best option – if you qualify.  It will give you the best outcome above all other options– chapter 13 and chapter 7 bankruptcy being the other options. A loan modification allows you to begin a repayment plan, without the baggage that bankruptcies can carry.

Loan Modification As Your Go-To Choice

Loan modification allows you to roll all of your missed payments into future payments; your loan is re-amortized. The adjusted loan is based upon your missed payments and principal balance combined, and usually has a lower interest rate with a term of 30 to 40 years, which results in a lower monthly payment.

I’ve Decided I Want To Apply For A Loan Modification, What Should I Do Next?

If you want to apply for a loan modification to save your home from foreclosure, you should first find out if you qualify for one. There are certain criteria you must meet, regarding your income and expenses, to qualify for the loan modification. To find out if you qualify, read our post: Do I Qualify For A Home Loan Modification?

From there, if you think you qualify for a loan modification, read our post: How To Get A Loan Modification.

 

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Atlantic City Foreclosure Rate Highest In The Country

atlantic city foreclosures1 in 257 homes in Atlantic City is in foreclosure.

Realty Trak reported in October that Atlantic City has the highest foreclosure rate in the Country (and Trenton is second) (see article here). There was a foreclosure complaint filed on one in every 257 homes in Atlantic City in October.  This is four times the National average.  Foreclosure filings in Atlantic City rose 14% from September to October.

Atlantic City is suffering from the decline of casino gambling with four major casinos closing resulting in massive lay-offs.

New Jersey overall has one of, if not the, highest rates of foreclosure state wide.  Why?

Statewide, 1 in every 171 households have had a foreclosure complaint filed against the property. This is more than double the national average. And not just foreclosure complaints, but New Jersey is first in delinquencies too which is a leading indicator of foreclosures coming.

High Property Taxes.

New Jersey property taxes are the highest in the Nation.  Everyone here in New Jersey knows their property taxes are high.  And, our roads and bridges continue to crumble and our public transportation system is in a serious need of upgrading. Where is the money going?

Jobs are leaving the State.

High property taxes scare away potential employers and cause existing employers to leave the State to save on wages and corporate property taxes and the general high cost of living.  Property taxes have also been a major factor in slowing the recovery in home values keeping them flat or worse following the drop in 2008 and 2009.

After effects of hurricane Sandy.

Hurricane Sandy also contributed to a drop in real estate prices and, when coupled with slow or negative  job growth, has kept home prices low.

Decline in Atlantic City casino gambling.

Atlantic City has suffered greatly from competition from other States that have opened casino gambling causing casinos to close and workers to be laid-off.  According to figures released by the Division of Gaming Enforcement, Atlantic City’s casino industry lost 4,000 jobs in the 12 months prior to August. Subtracting the newly closed Revel, Showboat and Trump Plaza workforces, and the possible 2,800 job losses at Trump Taj Mahal, and the area could soon have nearly 12,000 fewer jobs than it did in August 2013, not taking into account possible new jobs at the remaining casinos.

Christie hasn’t helped.

What has Governor Christie (remember him?) done to help?  In short – nothing.  There have been a number of policy decisions by the Christie administration that have worsened the foreclosure crisis in New Jersey: In 2012 Christie used the $75 million the state was awarded in a multi-state settlement with banks over mortgage industry abuses to close a budget gap.  That same year New Jersey took longer than any other state to give out federal funds for unemployed homeowners who couldn’t pay their mortgages during the recession.  New Jersey also didn’t join a lawsuit against Bank of America, which ended in a settlement that provided other states millions of dollars for foreclosure relief.

What Can You Do If Your House Is In Foreclosure?

First, determine if your house is worth saving.  Is your loan underwater?  Is there hope that the value will recover and you can sell the home in the near term?  Is it worth paying what you would have to pay each month if you get a loan modification?

Second, if you determine you want to save your home, apply for a loan modification.  If you cannot obtain a loan modification, you may need a chapter 13 bankruptcy.

Be careful of scams.  With all of the press Atlantic City has received lately, there are plenty of people who  will try to take advantage of the situation.  Be careful.