New Jersey Bankruptcy Sarah J. Crouch continues our video series of frequently asked questions today with a video explaining the differences between Chapter 7 & Chapter 13 bankruptcy and why they might be the right option for you.

Interested in how bankruptcy can help you out of your financial situation.  Give us a call at 732-302-9600 or fill out our online consultation form and we will contact you.

Have you received a letter from your mortgage company stating that you are eligible for a mortgage modification recently?  Does it list shockingly specific payment terms and include coupons?

A new streamlined mortgage modification process may explain the mail you have been getting from your mortgage company about a possible modification.

The new streamlined process that was started back in April is designed to shift the burden from the borrower to request a mortgage modification and provide the proper paperwork over to the servicer to offer a mortgage modification and work with the borrower to make it happen.

Eligibility for the program is as follows:

1.  You must be between 90 days and 24 months behind on your mortgage;

2.  This will only apply to a first mortgage that is worth more than 80% of your home and has been modified less than twice;

3.  The loan must be at least 12 months old;

4.  The loan must be a Fannie or Freddie Loan.

These modifications, when granted, would reduce the payments on the home an average of 30% but WILL NOT result in principal reductions.  Ever.

Our office’s experience with the program so far can be best described as sub-par.  I had a client send the payments in and deliver all of the required documentation and than some and was denied for failure to submit all of the documentation.

It is just like every other mortgage modification program out there, a complete run around that rarely resulted in a modification for a qualified buyer.

The New Jersey bankruptcy court now offers an excellent mortgage modification program within a bankruptcy proceeding.  This offers struggling homeowners a direct link to a modification representative, contempt of court proceedings in the event the mortgage co does not respond in a timely fashion, and stays any foreclosure proceedings so that all parties are working on the same goal at the same time, instead of the mortgage company working on a foreclosure and a modification at the same time (which all of you in loan mod programs should know…if you are behind they are working on a foreclosure.  I don’t care if they tell you they aren’t…rest assured they are).

Interested in talking to us about how to stop the foreclosure on your home?  Give us a call at 732-302-9600 or fill out our online consultation form and we will call you.