Despite President Obama’s introduction of the “Making Home Affordable” Plan in 2009, very few homeowners with delinquent loans are finding themselves able to renegotiate their mortgages. The President’s Plan was intended to stabilize the housing market and keep homeowners in their homes, by preventing avoidable foreclosures. However, this relief is proving hard to come by, as permanent loan modifications remain infrequent.
Under the President’s program, homeowners would be entitled to loan modification after a) directly contacting their lender, and b) establishing, within a three month window, that they qualify for the program and are able to make their initial payments. In theory, this would rescue numerous homeowners from the precipice of foreclosure. However, this process has proven to be both a bureaucratic nightmare and an opportunity for lenders to stall.
Lenders are providing a myriad of justifications for denying requests for loan modifications, such as: declaring that necessary documents have not been submitted; stating that some borrowers’ earned too much money to qualify for the program; or, alternatively, earned insufficient income to make modified payments. Meanwhile, borrowers are left in a state of bureaucratic limbo, as they slip further into debt, and are left unsure of the next reasonable move. If you find yourself in such a position, and are in need of sound advice, it is time to reach out to a New Jersey Bankruptcy Lawyer.
It appears that mortgage company executives are not receiving sufficient motivation to modify loans, largely because the incentives from modifying delinquent loans are quite often less than the fees collected from the delinquency. Consequently, many lenders are pushing toward foreclosure, and the resulting fees, rather than reasonably considering loan modification. Mortgage company executives do not have your best interest at heart, and therefore rather than waiting and hoping for lenders to provide relief, it makes sense to retain the services of a responsible and creative New Jersey Bankruptcy Lawyer. Contact skilled New Jersey consumer law bankruptcy attorney, Robert Manchel, to learn more about what foreclosure resolution options may be available to you. Call (866) 503-5655 today.