Are you a homeowner falling behind on mortgage payments? Worried that you may not be able to pay as much towards your mortgage soon? Want to restructure your mortgage payments to make them more affordable? You may be able to get a mortgage loan modification from your mortgage company to help make the loan more beneficial for you and your financial situation.
Whether you are behind on payments or already in foreclosure, loan modifications are a great option for homeowners to make their mortgage payments more affordable. A loan modification can modify your current loan and make your payments more bearable to handle.
Denbeaux & Denbeaux Law has loan modification attorneys ready to answer your questions and guide you through the process of loan modifications and foreclosure.
Aren’t sure what a loan modification is and if one is a good idea for you? Contact Joshua Denbeaux today for a free consultation, and keep reading to learn how a loan modification works and how it may help you keep your home.
What Is A Mortgage Loan Modification?
A home loan modification allows you to modify the original loan that you owe to your mortgage lender. This could mean reducing the interest rate, splitting the payments into smaller amounts, extending the loan to reduce payment amounts, or reducing the principal of the loan.
Loan modifications are accessible to homeowners who qualify and meet the requirements. It can be hard to determine if you’re eligible to receive a loan modification and the best terms for that modification. On top of that, the loan modification process can be confusing and require a lot of paperwork and communication with the mortgage company.
Lenders can deny loan modifications, but that has become increasingly less likely due to the new CFPB rules requiring lenders and servicers to conduct due diligence to help homeowners avoid foreclosure.
However, even if you know the basics of a loan modification, the process is still complex to navigate. If you’re a New Jersey homeowner looking for a loan modification, you’ll first have to identify if you’re eligible for a loan modification, learn about what terms you may be able to get in a modified loan, and get approved for a modification.
Do I Qualify for a Mortgage Modification?
In order to get a loan modification with your mortgage lender, New Jersey homeowners must qualify and meet certain requirements. These requirements will vary from lender to lender, but generally, the requirements will include:
- The house must be under the homeowner’s name
- Homeowners must prove that they cannot make payments due to a financial hardship
- Provide evidence of your financial hardships that caused you to fall delinquent on payments. Financial hardships can include, but are not limited to:
- Illness or disability
- Death in the family
- Natural disaster
- Divorce
The best way to get approved for a loan modification in New Jersey is to meet your lender’s requirements and have all the necessary paperwork that documents your financial hardships. However, even if you’ve had financial hardship, proving that you qualify for a loan modification can be a complex process. Often, the qualification process isn’t as straightforward as it seems.
To find out more about if you qualify for a loan modification with your mortgage servicer, you can go on their website and find their specific qualifications. You may also find your lender on our list of mortgage servicers that the attorneys at Denbeaux & Denbeaux Law often deal with.
How Do You Get A Mortgage Loan Modification?
Getting a loan modification in New Jersey can be a long and complicated process that requires the proper paperwork and regular communication with your mortgage lender. Homeowners also need to be aware that mortgage lenders and banks may not have your best interest at heart.
Here’s how a New Jersey loan modification attorney can help you through the modification process:
1. Pinpoint who your mortgage servicer is
A lot of people mistake their mortgage lender for their mortgage servicer. To get a loan modification in New Jersey, you must contact your mortgage servicer, not the lender or owner of your loan.
The mortgage servicer is the company you pay your regular mortgage payments to. Sometimes, the mortgage servicer and mortgage lender are the same company, but often, the mortgage servicer is a separate company that services the mortgage loan from the company that owns the loan. Your mortgage may have been sold between companies, and tracking down who actually owns your loan can be a complicated process.
Because this process can be time-sensitive, it’s important that you know who your mortgage servicing company is so that you contact the right people and prevent precious time from being wasted. An attorney can help you navigate through this process by communicating with companies on your behalf to get the proper paperwork together and identify if you’re eligible for a loan modification under the terms of your loan, federal regulations, and state regulations.
2. Apply with your mortgage loan servicer
To submit an application with your mortgage loan servicer, you first need to send a statement of desire for a loan modification and why. In order for your application to be approved, you need to prove financial hardship that is preventing you from being able to make your monthly payments.
Crafting these statements and providing proof is the key to successfully applying for a loan modification. If you get this step wrong, you may be denied a loan modification when you were, in fact, eligible.
After sending your statement of desire, your mortgage lender may ask you for additional paperwork to confirm your reasons for pursuing a loan modification. A loan modification attorney can help craft these documents using their experience navigating the loan modification process and communicating on your behalf with lenders to get the best outcome in your situation.
3. Negotiate loan modification terms
Eligibility is the first step to getting a loan modification. After being approved, you should work with your lender to get the best terms for your financial situation. There’s no point in getting a loan modification if the terms don’t work best for you.
Negotiating with your lender can be intimidating, but don’t let that stop you from getting the modification terms that you need and deserve according to your rights. An experienced loan modification lawyer may be able to negotiate with your lender to make sure you get the best outcome of your modification.
The loan modification process is complex, and some lenders make it intentionally difficult for unknowing homeowners with loan modifications that do little to help their financial situation. With an attorney, you can have peace of mind knowing that you have someone on your side who is obligated to pursue your best interest.
How Long Does a Loan Modification Take?
Loan modifications typically take 3 – 6 months. There are various stages within this time that are part of the loan modification approval process.
After your loan modification is approved, your lender will most likely offer you a Trial Payment Period (TPP). Lenders use TPPs as a trial for your loan modification before it’s finalized to make sure that your modified mortgage is affordable for your household.
Trial periods are most commonly 3 months long but can be as long as one year. After your TPP, if you’ve successfully made your mortgage payments, your loan modification should be finalized.
Get A Loan Modification With Help From Our Loan Modification Lawyers
The loan modification process can be long and confusing. It also requires a lot of paperwork and back-and-forth communication with lenders that may impact your loan modification outcomes. Some banks and lenders also have a history of violating homeowners’ rights during the loan modification process.
An experienced loan modification attorney may be able to help you get a loan modification and stand up for your rights against banks and lenders.
Contact us today to schedule a free consultation and see how loan modification attorney Joshua Denbeaux at Denbeaux & Denbeaux Law may be able to help you get a loan modification with your mortgage servicer.
