If you are falling behind on your mortgage payments and facing foreclosure, a loan modification is the best way to stop the foreclosure and stay in your home. In order to apply for a loan modification, it is critical that you act fast and have the necessary information. Our law firm has the resources and experience to offer the best representation for loan modifications in New Jersey.
Do I Qualify For A Loan Modification? What Would The Payments Be?
At the law firm of Ira J. Metrick, Esq, we can tell our clients if they will qualify for a loan modification and what the new payments would be. We don’t apply for a modification unless we have advised the client of what payment terms they can expect.
We have obtained loan modifications for our clients from:
- M&T Bank
- Mellon Bank
- Mr. Cooper (Formerly Nationstar)
- Ocwen Financial Corporation
- Select Portfolio Servicing (SPS)
- Selene Finance
- Specialized Loan Servicing (SLS)
- Synergy Financial
- TD Bank
- TST Financial
- U.S. Bank
- Wells Fargo
Understanding the Loan Modification Timeline in New Jersey
Here is a breakdown of the required information and steps you need to take for applying for a loan modification in NJ. We will help you answer all of these questions and assist you every step of the way.
- Have answers to these important questions (We can help you find this information):
- Who is the current loan servicer?
- Who is the investor?
- What type of loan modification program will be used?
- Which consumer protection laws apply (for example TILA, RESPA, or FDCPA)?
- Has the lender reviewed a previous modification?
- Is it a commercial or investment property?
- Determine the status of the foreclosure, if your lender has started the process.
- Have you received a Notice of Intent to Foreclose in the mail?
- Prepare and submit a complete loan modification application.
- The application must be submitted at least 37 days before the sheriff sale, but should be submitted at least 45 days prior to the sale to confirm the most protections.
- After the application is submitted, file a Request for Information (RFI) to confirm receipt of the application and that it is complete, if applicable.
- Issue a Notice of Error (NOE) if the application is not acknowledged, if applicable.
- Issue a Notice of Error (NOE) if the application is not reviewed within 30 days.
- Receive and review trial modification (trial payment plan) or application denial and review to confirm it is accurate.
- If the loan modification was properly denied, review your other options.
- If the application was improperly denied; submit an appeal, RFI and NOE.
- If the application was not properly reviewed, evaluate possible court action in state court or federal court, including motions to stay sheriff sale, set aside sheriff sale or federal action for violating servicing guidelines.
- If loan modification was approved, make at least three (3) trial modification payments.
- After completion of the trial payment plan, receive and review permanent loan modification.
- Once permanent modification is fully executed, confirm that the foreclosure is dismissed, if applicable.
About Our Loan Modification Expert
Working alongside our loan modification expert, Roberto Rivera, we have the resources to research your specific investor or servicer and identify the specific modification programs available to clients. Mr. Rivera is a nationally recognized loan modification and home retention consultant with over 20 years of experience who has successfully modified loans for over 1,500 homeowners.
Since founding RR Compliance Consulting in 2009, Mr. Rivera has become a go-to loss mitigation consultant in the legal industry, and has worked with attorneys in nine states. He has achieved a success rate of over 99% in securing favorable outcomes for homeowners seeking loan modifications.
Understanding Loan Modification and Your Rights as the Borrower
It is important to understand your rights as a borrower in regards to loan modification. There are powerful new regulations that have been promulgated by the Consumer Finance Protection Bureau (“CFPB”) under the Real Estate Settlement Procedures Act (“RESPA”) and the Truth in Lending Act (“TILA”) that finally give borrowers the right to sue when mortgage loan servicers fail to meet their servicing obligations. We can sue your lender if they violate these regulations.
Common Modification Violations by Servicers
It is required by law for mortgage servicers to:
- Issue a decision within 30 business days of receipt of a complete application for a Loan Modification, Short Sale, or Deed in Lieu of Foreclosure;
- Advise the borrower within 5 business days after receipt of an application, if there are any additional documents needed;
- Stop any and all action in a foreclosure, while a complete application is being reviewed;
- Provide information properly requested about ownership of note and mortgage under TILA within 10 business days; and
- Provide information properly requested about loan payments, loan history, and other loan information within 30 business days.
- Provide payoff or reinstatement figures within 7 business days of receipt of written request
If a servicer violates these regulations, there can be liability under Regulations X and Z for statutory damages of $1000 to $4000, attorney fees, and compensatory damages (including emotional distress, legal fees, credit diminution and other losses).
What Are the Types of Loan Modifications?
A loan modification will restructure your mortgage by changing one or more of the payment terms. The type of modification available will depend upon the investor and servicer for your loan. Common types of loan modifications include:
- Principal Reduction Loan Modification – Forgives a portion of the principal loan amount.
- Principal Forbearance – Ignores a portion of the amount owed until the end of the loan term, or the sale of the property.
- Interest Rate Reduction Loan Modification – Reduces the loan interest rate.
- Loan Term Extension – Extends the life of the loan, reducing the monthly payments.
- Late Fee Forgiveness – Removes late fees accrued due to missed payments.
- Capitalization of Arrears – All missed payments and fees are added to the end of the loan.
Contact the law firm of Ira J. Metrick today for a free consultation to learn more about how we can help you apply for a loan modification and stay in your home. We can help you understand your loan modification options in all New Jersey counties:
- Atlantic County
- Bergen County
- Burlington County
- Camden County
- Cape May County
- Cumberland County
- Essex County
- Gloucester County
- Hudson County
- Hunterdon County
- Mercer County
- Middlesex County
- Monmouth County
- Morris County
- Ocean County
- Passaic County
- Salem County
- Somerset County
- Sussex County
- Union County
- Warren County