NJ Mortgage Modification Basics
To get to the basics, let’s go back to where it all started — when you originally obtained your mortgage:
- You agreed to and signed a Contract with a lending agent.
- It stated the amount, or principal, you were borrowing.
- You agreed on the interest rate that would be charged on the loan amount and the length of time you would have to pay back the loan, usually 15 or 30 years being the most common.
Now, suppose you wanted to change the terms of your mortgage. If you wanted to get a lower interest rate or shorten the length of the loan, you are able to refinance it with your lender. This process requires proof of income, a credit check and much more, similar to when you entered into the original loan.
On the other hand, suppose you were at risk of losing your home to foreclosure. Since banks really do prefer that you continue to own your home and make your monthly mortgage payments, they allow homeowners to modify their mortgages. A modified mortgage results in:
- A reduced interest rate.
- Writing off part of the principal amount due.
- Extending the duration of the loan.
- Lowering your monthly payments and enabling you to stay in your home.
According to Google search, one of the top questions asked regarding mortgage modifications is:
Do I need a lawyer for a mortgage modification?
Technically, no you do not. But when you hire a mortgage modification lawyer, you’re hiring someone who’s knowledgeable about this specific loan process. They’ll know all of the ins and outs of loan modification programs and how to best deal with different mortgage companies.
Plus you’ve got to consider that there is a lot of fraud in the mortgage modification industry…unfortunate but true. If you do get caught up in a mortgage modification scam, it can actually make a bad situation even worse.
Allow us to list some specific benefits to working with a mortgage modification lawyer:
- They can help you complete your loan modification application. This will help you avoid any mistakes when filling out the forms and providing the correct documents.
- They will make sure that your mortgage lender is following all laws and rules during the loan modification process. If there are any violations, it can prove helpful during an appeal if the lender denies your loan modification request.
- If you wish to appeal a denial, a lawyer can explain the process and help submit the best appeal possible. Furthermore, if they represented you during the loan application process, they’d already have several arguments to present in support of the appeal.
- A mortgage modification attorney can help you decide whether pursuing a loan modification is even worth the effort. For instance, your current financial situation may make it almost impossible to get a loan modification. Or perhaps there are other, even better, options to consider to avoid losing your home to foreclosure. In these cases having a mortgage modification lawyer weigh in on your specific situation may save you from wasting any time and effort on a loan modification.
If you are interested in learning more about how we can help you with a mortgage modification, give our office a call at 732-302-9600. We have 31+ years of experience in this area and are able to guide you in the right direction toward your Fresh Start.