An NJ Mortgage Lender and Loan Modifications: What You Need To Know

A loan modification is a negotiation between an NJ mortgage lender and a homeowner whereas the loan terms are restructured, not refinanced. As a result, the rate and the terms of the loan are restructured by the NJ mortgage lender to more aptly fit the current financial situation of the borrower.

Why Would an NJ Mortgage Lender Modify Your Loan?

Banks and mortgage lenders would rather take less money and keep homeowners in their home making a payment that they can afford, rather than going through the exorbitant expenses of foreclosing the home, hiring a listing agent, possibly rehabilitating the home, and facing the distinct possibility of letting it sit vacant on the market for months, losing thousands upon thousands in the process.

Therefore, a loan modification between a borrower and an NJ mortgage lender is a good solution for homeowners who cannot refinance, are behind on mortgage payments or struggling to make the payments, have a genuine hardship, and actually do want to stay in the home. In these cases, the NJ mortgage lender orchestrates a loan modification as a permanent solution, and as a temporary stop to the foreclosure process.

Will an NJ Mortgage Lender Really Negotiate?

The answer is: yes. In these market conditions, the government mandates banks and mortgage lenders to do everything possible to work out a payment plan with borrowers so borrowers can stay in their homes. An NJ mortgage lender definitely does not want to foreclose on your home unless there is absolutely no alternative. If you can present the NJ mortgage lender with a realistic proposal that makes sense, they are generally very open and receptive to the loan modification process.

Who Qualifies for a Loan Modification?

Anyone who can prove they are experiencing a financial hardship to the NJ mortgage lender. The following are homeowners who generally fit these criteria:

• Homeowners who are at least one month behind on their mortgage payment.
• Homeowners with negative amortizing loans.
• Homeowner with loans that are about to adjust.
• Homeowners who are upside down on their loan.
• Homeowners who would rather keep their home than do a short sale.

One perk of the loan modification is that there are no credit checks. In addition, the bigger the hardship, the more negotiating power that you have with the NJ mortgage lender. The most important thing to remember is that the NJ mortgage lender does not want to foreclose on any more homes. They would rater keep someone in their home and create a solution that helps everyone than go through the cost, expense and time of foreclosing on your property.

Can You Negotiate a Loan Modification with an NJ Mortgage Lender Yourself?

Yes. However, it’s becoming more and more difficult as a larger number of homes are foreclosing. The process takes a great deal of time and commitment but it definitely worth it and doable. The first step is contacting your NJ mortgage lender and seeing about what is required to initiate the process.