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Home Loan Modification | New Jersey

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Home Loan Modification | New Jersey

loan modification application

How To Get A Home Loan Modification To Save Your Home From Foreclosure

  • Are you getting the run-around from the bank?   
  • Have you entered into one or more trial modifications but still not offered a permanent loan modification?
  • Are you more than 4 or 5 months behind in your mortgage payments?
  • Are you worried the bank is going to sell your home and force your family to move?

 

Loan Modifications Are Frustrating

  • Is your bank asking for the same paperwork over and over?
  • Getting no response from your lender?
  • Faxing documents again and again?
  • Spending hours on hold?
  • Getting the Runaround?
  • Getting conflicting information every time you call?
  • Always speaking to a different agent?
  • Are you waiting and waiting and waiting for answers?

Want to find out more about why getting a loan modification can be such a hassle? Read our post: Why Are Loan Modifications Frustrating?

What Makes The Process Difficult?

The banks give homeowners a hard time when they try to modify their mortgage. Bank representatives shuffle homeowners between departments giving different answers to basic questions. You have to fill out applications and provide documents over and over. They might lose the documents, or say the application has expired and tell you to do it all over again. This process can be costly and can drag on for months—or years! Sometimes the application gets wrongly denied, or denied without you being given any reason whatsoever. While this is happening, you’ve gotten further behind in your mortgage payments.

 

Loan Modification Is THE Best Tool

If you are facing the risk of losing your home to foreclosure, a loan modification is the #1 option. If you qualify, then a load modification will give you the most desirable outcome, as opposed to a bankruptcy. A loan mod will roll all of your missed payments into the principal and the loan payments will be recalculated based on an interest rate of not usually more than 4% and a term of 30 years. Interested in learning more about why loan modification is the #1 tool to save your home, read our post: Why Is Loan Modification The Best Tool? 

 

Do I Qualify For a Loan Modification?

You must have the correct debt to income ratio. Your income must be enough to pay the loan and other expenses. Therefore, it starts with income. Then, look at your expenses: your expenses plus your mortgage payments can’t leave you in the negative for the month. Find out more about qualifying for a loan modification, read our post: Do I Qualify For A Home Loan Modification?

How To Get A Loan Modification

You must complete your bank’s forms for getting a loan modification; they can be found on your bank’s website. You must complete all of them and submit them to your bank. Find out more on how to get a loan modification, read our post: How To Get A Loan Modification. 

 

Will I Qualify If I’m Self- Employed?

If you are self-employed, there are certain stipulations to getting a loan modification that exist. There is a slightly different process on must follow; you must organize your finances in such a way that the bank approves of. To find out how to qualify for a loan modification, even if you are self-employed, read our post: Will I Qualify For A Modification If I am Self-Employed?

 

What Should I Do If I Can’t Qualify For A Loan Modification?

If it turns out that you can’t qualify for a loan modification or your bank has denied you countless times, then a bankruptcy may be a good alternative. A bankruptcy can help you get into a repayment plan and help eradicate debts. If you are interested in learning more about bankruptcy as an option, read our post: How Does Bankruptcy Help Save My Home In Foreclosure In New Jersey?

Why Should I Act Fast On Getting A Loan Modification?

The sooner you take action and begin the process of applying for a loan modification, the better your chances are of obtaining one. The longer you wait, the more mortgage payments are being missed. If you wait too long, the higher the new calculated monthly payments will be, and it becomes more difficult to be accepted for a loan modification. To learn more about why it is crucial to apply for a loan modification ASAP, read our post: Why Should I act Fast In Applying For A Loan Modification?

 

 

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Will I Qualify For A Modification If I Am Self-Employed?

self-employed loan modificationSimple answer: no.

Lenders Can’t Understand The Finances Of The Self-Employed

I suppose they just don’t want to.  Maybe they fear they cannot verify the financial information submitted by a self-employed person.  Whatever the reason, this has been a very difficult issue for quite a number of years and given that a large number of people in the United States are self-employed, this issue effects many people.

What, Then, Can A Self-Employed Person Do To Qualify For A Modification?

Start with audited financial statements by a certified accountant.  This will go a long way in convincing your lender that your numbers are real.

It would also be helpful if you have been in business for a number of years.  Many businesses fail in less than five years.  If you have been in business for more than five years, you have proven that you have a reliable income.

Another approach may be to pay yourself a regular paycheck each month just like regular employees do who are not self-employed.  This can be helpful to a lender when underwriting your loan modification.

Understand how the mortgage lender thinks and prepare and submit your information in a form that the underwriter expects and can understand.

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

It will be an up-hill fight but if you start with the ideas above, you may have a chance.

Good luck!

 

 

 

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Do I qualify for a home loan modification?

do i qualify for a home loan modificationWhen trying to obtain a home loan modification, one thing most people want to know up-front is, “Do I qualify for a home loan modification?”

Underwriters evaluate the ratio between your income and your mortgage payments first.

Next, the underwriters look at your monthly expenses and compare these next to your mortgage payments. They subtract your mortgage payments and expenses from your income; this value cannot be in the negative in order for you to qualify.

If your debt to income ratio is OK and your expenses are not too high, you should qualify for a home loan modification which will save your home from foreclosure.

Will I Qualify For A Loan Modification If I’m Self-Employed?

If you’re self-employed, there are certain considerations that the bank makes in evaluating your loan modification application. You must organize your finances in such a way that the bank approves of. If you are self employed and trying to get a loan modification to save your home, read our post: Will I Qualify For A Modification If I am Self-Employed?

 

How Do I Get A Home Loan Modification?

To get a loan modification you must find out what forms your bank requires and send them in exactly the way that they specify. If you want to find out how to get a loan modification, read our post: How To Get A Loan Modification. 

 

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What is MERS?

MERSAlthough it has become less of an issue, What is MERS? is a question I get from time to time from clients as they try to understand just who it is they are dealing with at their home loan lender.

MERS is a warehouse and database for mortgage documents designed to simplify the recording of mortgage documents and the process of trading loans form one investor to another to save the big banks money.

MERS stands for Mortgage Electronic Recording Service.  When you first closed on your home loan, you signed two documents: a Note and a Mortgage. The Mortgage was then recorded in the County Clerk’s Office in your County to let the world know there is a loan on the propriety which is secured by the property. The name on your mortgage document was the home lender you first dealt with and MERS.  MERS kept a copy of your mortgage document in their warehouse and database as a convenience to your lender.  The very next day, your home loan lender transferred your loan to an investor.  In fact, your home loan may have been transferred several times between investors since you first closed on your home loan.  Each and every time there is a transfer of the loan from one lender or investor to another, an assignment of mortgage would have to filed in the County Clerk’s Office in your County and a filing fee would have to paid to the County Clerk.  However, because MERS is warehousing the mortgage document for the lenders and investors and continues to do so even after each and every transfer, there is no need for an assignment or the recording fee.  Brilliant! Right?

Definitions:

The Note is a contract between you and your lender where the lender agreed to provide funds to purchase your home and you agreed to pay the bank back over time with interest.

The Mortgage is a document which is recorded in the County Clerk’s office in the County where your house is located and let’s the world know that your home lender has a priority lien on the property and if you default on paying on the Note, the lender has the right to foreclose on the property in order to pay themselves.

While there was  lot of discussion about whether or not MERS was legal in the early days of the foreclosure crisis, the issue has pretty much been resolved and is no longer a grounds for a defense in a foreclosure action.

Resources:

MERS can help you if you don’t know who your mortgage servicer is. You can use the MERS database to find out who your loan servicer is if you don’t know.  Go the MERS website and enter the Mortgage Identifier Number to find out.

If you need help with a foreclosure action or getting a loan modification, submit your information through our Free Evaluation feature her on our website.

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New Jersey Foreclosure Activity Still High in 2014

foreclosure homeNew Jersey foreclosure activity still high in 2014 according to the latest information from RealtyTrak which tracks the foreclosure market nationwide.  In New Jersey foreclosure filings have picked-up compared with a year ago, but, it still takes more than 2 1/2 years for lenders to evict New Jersey homeowners who can’t pay their mortgages.

According to RealtyTrak, the number of homes in or at risk of foreclosure  in New Jersey rose 55 percent from September of a year ago to September 2013. Foreclosures were all but frozen for more than a year after questions arose about “robo-signing” – in which mortgage industry representatives signed legal documents without checking them. It has resumed in the wake of several legal settlements and court rulings.

Lawyers from New Jersey’s largest foreclosure law firms such as Fein Such and Zucker Goldberg, tell me they filed a very large number of foreclosure cases in September and October in efforts to get many cases that were stalled for months back on track for a Sheriff’s sale.

New Jersey’s foreclosure process is still the second-slowest in the nation, after New York. Other states have already gotten past the worst of the foreclosure crisis, and foreclosure filings dropped nationwide about 27 percent in September compared with a year earlier.

In the third quarter, Florida and Nevada continued to have the highest foreclosure rates.