Loan Modification Could Save Your Home in New Jersey

Attorneys Help NJ Homeowners Avoid Foreclosure

Is your mortgage unaffordable because your adjustable rate went up? Perhaps your property value has decreased and you cannot refinance. Or like many homeowners, you have less income and you struggle to make your payments. The New Jersey foreclosure attorneys at Ast & Schmidt, P.C. help homeowners with qualifying and applying for a loan modification.

The purpose of a loan modification is to help homeowners with income afford their monthly mortgage payments. A loan modification could:

  • Reduce your interest rate to as low as 2 percent
  • Extend the length of your loan to as much as 40 years, which reduces the monthly payments
  • Bringing your loan current by rolling your delinquent amounts into the principal balance
  • Delay paying the arrears until the property sells or the loan paid off

You could try to negotiate a loan modification on your own, but most homeowners become overwhelmed. Attorneys David Ast and Robert Schmidt at Ast & Schmidt, P.C. help clients qualify for and obtain loan modifications, as well as explain the best options for their situation.

U.S. and New Jersey programs available

Both state and federal programs can help homeowners get a loan modification and avoid foreclosure. Even if you are in bankruptcy, you could qualify for this assistance. The Home Affordable Modification Program (HAMP) is a federal program for homeowners in default or facing foreclosure. If your mortgage company participates in HAMP, then you can qualify for a loan modification if:

  • You occupy your home as your principal residence.
  • The total of current payment of principal, interest, taxes and insurance is more than 31 percent of your monthly gross income.
  • Your mortgage is dated before January 1, 2009 and the balance is less than $729,750.
  • You are in default or imminent danger of default.

You may apply for HAMP in Morris County even if you are in bankruptcy. Be careful about responding to advertisements or solicitations – some of them could turn out to be scams.

New Jersey foreclosure mediation is a court-supervised process for homeowners in foreclosure. A trained mediator facilitates the discussions between the mortgage company and the homeowner to obtain a loan modification or other alternative to foreclosure. The Morris County foreclosure mediation attorneys at Ast & Schmidt, P.C. represent homeowners in the mediation process.

Contact a New Jersey Foreclosure Lawyer for a Free Consultation

Applying for a loan modification can be complicated. If you are behind on your mortgage, act quickly to preserve all your options. Contact Ast & Schmidt, P.C. today.