Stop Your Foreclosure Today

Stop Foreclosure, Tips Preventing Foreclosure

DO NOT IGNORE THE LETTERS FROM YOUR LENDER. If you are having problems making your payments, call or write to your lender without delay. Then contact Fredrick P. Niemann, Esq. to set up a consultation to discuss whether you can qualify for a loan modification or workout without losing your home or investment property.

Stay in your home for now. You may not qualify for assistance if you abandon your property.

Act now. Delaying will not help. If you do nothing,
YOU WILL LOSE YOUR HOME and your good credit rating.

What are my foreclosure alternatives?

With capable legal guidance and assistance, your lender may consider:

Special Forbearance. Your lender may be willing to arrange a repayment plan based on your financial situation and may even provide for a temporary reduction or suspension of your payments. You may qualify for this if you have recently experienced a reduction in income or an increase in living expenses. Fredrick P. Niemann, Esq. and/or the attorneys of the firm will work with you and your lender to show that you are able to meet the requirements of a new payment plan.

Loan and Mortgage Modification. Your debt and/or extend the term of your mortgage loan. This may help you catch up by reducing the monthly payments to a more affordable level. You may qualify if you have recovered from a financial problem and can afford the new payment amount.

Loan Modification

In the state of New Jersey (and likely most other states by now), Lenders will be required to participate in court ordered mediation where some attempt to modify or otherwise provide some accommodation to homeowners in distress will be “urged”. While not mandatory upon Lenders, there may be more options available during mediation, because a representative of the Lender is required to be available in person or by phone to participate in the process. Generally, this person has more authority to negotiate terms than the person in the loss mitigation department of a Lender simply processing the applications. Either way, whether by dealing directly with the Lender or during the court ordered mediation process, the homeowner will be required to submit financial documentation and information in order that the Lender can determine whether the terms of a modification can be maintained by the homeowner. Although the term “modification” actually means that one or some of the terms of the loan are permanently modified, the process of loan modification has come to mean any adjustment of the loan such that the homeowner is permitted to stay in the home under some mutually acceptable arrangement with the Lender. An experienced NJ foreclosure lawyer like Fredrick P. Niemann, Esq. and the attorneys of the firm can be an invaluable resource to your negotiated loan and mortgage modification.

Some of the options available for modification of the loan include:

  1. Although often unlikely (because of the homeowner’s unique financial distress) it is possible that the parties will agree that the foreclosure action will be dismissed if the homeowner can bring all amounts outstanding current, including attorney’s fees, taxes, insurance, etc. A defensible and credible plan needs to be presented to the Lender.
  2. We can negotiate on your behalf the terms of a mutually acceptable loan modification agreement that provides for you, the homeowner or commercial property owner, to begin making the monthly payments again, together with an additional amount to be applied towards the arrearages, until the mortgage is current.
  3. The Lender may agree to “forebear” payment of the arrearages for some period of time and require only that the property owner pay the monthly mortgage payment, until such time that you can afford to begin making payments against the arrearages. Again, this can be made part of the negotiations with your Lender.
  4. The Lender may agree to permit you to pay only a portion of the arrearages and extend payment for the remaining number of arrearages until the end of the term of the mortgage.
  5. The Lender may modify the loan by reducing the interest rate for the term of the mortgage; extend the overall term of the loan; convert an ARM to a fixed rate or add the arrearages to the existing loan balance.
  6. There are a number of other, less common options, including reducing the principal; forbearance of a portion of the principal interest free; loan assumption by a qualified person; or reverse mortgage for qualifying individuals.
  7. Making Home Affordable Program: Guidelines proffered by the Federal Government to be followed by participating loan servicers are available which can be used as a guide to renegotiate the terms of your loan documents. See attached in depth description of the program.

Of course, a Lender will only be inclined to enter into an agreement with New Jersey homeowners and commercial property owners if the financial information provided indicates that the agreement can be maintained. Otherwise, there is no incentive for the Lender to dismiss or postpone the foreclosure action if they will have to reinstate it or re-file it at some point in the near future.

Fredrick P. Niemann, Esq., a NJ commercial loan and mortgage modification attorney and NJ foreclosure attorney can work with you every step of the way in an effort to reinstate your loan, return it to performing status and help you regain your peace of mind and keep your credit rating from becoming un-reparable. You can reach him by calling toll-free (855) 376-5291 or email him at fniemann@hnlawfirm.com.

Pre-foreclosure sale, also known as a short sale. Fredrick P. Niemann, Esq. and the attorneys of the firm will work with you when possible to meet the lender’s criteria for a short sale to avoid foreclosure by selling your property for an amount less than the amount necessary to pay off your mortgage loan.

Deed-in-lieu-of foreclosure. Also called a quit-claim. As a last resort, you may be able to voluntarily “give back” your property to the lender. This won’t save your house, but it is not as damaging to your credit rating as a foreclosure. Pursuant to New Jersey Statute N.J.S.A. 2A:50-6, a deed in lieu of foreclosure is a “voluntary, knowing and un-coerced conveyance by the residential mortgage debtor to the residential mortgage lender of all claim, interest and estate in the property subject to the mortgage.

The option of convincing a Lender to accept a deed in lieu of foreclosure is generally only available where the homeowner has no other debts or liens against the property.

The property must be vacant in order for a Lender to agree to accept a deed in lieu, but again, a deed in lieu is less detrimental to a homeowner’s credit than a fully prosecuted foreclosure action.

Caution: BEWARE: It is absolutely essential that agreement for a deed in lieu of forbearance confirm that any deficiency after sale of the property by the Lender is forgiven. The settlement documents must specifically and explicitly state this.

You will want to be certain that all existing and/or potential claims against you by your lender are forgiven. Fredrick P. Niemann, Esq. can help you negotiate the terms and conditions to secure approval by your lender for a deed-in-lieu of foreclosure.

You can qualify if:

  1. you are in default and don’t qualify for any of the other options;
  2. your attempts at selling the house before foreclosure were unsuccessful. Your lender will determine if you qualify for any of the alternatives.

FACING FORECLOSURE?

When you want personal attention to your real estate file and quick, courteous return calls, call us toll-free at (855) 376-5291. Ask for Mr. Niemann or Mrs. Urciuoli or you can e-mail Mr. Niemann at fniemann@hnlawfirm.com. Let us help you with one of your most important lifetime decisions, buying a home, land or other real estate property.

New Jersey Foreclosure Questionnaire

HANLON NIEMANN & WRIGHT IS PREPARED TO HELP YOU TODAY

Assertive, prepared legal counsel is extremely important to the success of negotiations and workout with lenders. If you do nothing, you will lose your home or commercial property to foreclosure and a risk being subject to potential deficiency judgment for the total unpaid balance of the loan plus interest.

Please fully complete this questionnaire and mail or scan and email it to us. Upon receipt, Mr. Niemann or an attorney in his office will be in contact with you to discuss your matter, the fees the firm charges and other topics of mutual concern.

CLICK HERE – Download – print (PDF): New Jersey Foreclosure Questionnaire

Let Hanlon Niemann & Wright work for you today.

FREDRICK P. NIEMANN IS PREPARED TO HELP YOU TODAY

Fredrick P. Niemann Esq.

Assertive, prepared legal counsel is extremely important to the success of negotiations and workout with lenders. If you do nothing, you will lose your home or commercial property to foreclosure and risk being subject to potential deficiency judgment for the total unpaid balance of the loan plus interest.

Please fully complete this questionnaire and mail or scan and email it to us. Upon receipt, Mr. Niemann or an attorney in his office will be in contact with you to discuss your matter, the fees the firm charges and other topics of mutual concern.

Call our office today. Ask for Mr. Niemann to personally discuss your NJ foreclosure situation toll-free at (855) 376-5291 or e-mail him at fniemann@hnlawfirm.com.

 

TESTIMONIAL

Working with Hanlon Niemann & Wright over the years has been a pleasure for me. They have been professional all the way. Their entire staff of attorneys, paralegals, secretaries and support staff always make me feel comfortable.

—Erik Hove, Manalapan, NJ

 

 

Written by Fredrick P. Niemann, Esq. of Hanlon Niemann & Wright, a New Jersey Foreclosure Law Attorney