call today

(856) 988-9055

Loan Modifications within Chapter 13 Bankruptcy Cases

There are few activities that have proven more frustrating than trying to obtain a loan modification. Countless numbers of our clients have previously attempted to obtain a loan modification with little to no success. It has come to a point where a completed loan modification appears as rare as a winning lottery ticket.

During the loan modification process, our clients have informed of numerous shared experiences: excessive time spent submitting the same documentation over and over again, deadlines for definitive answers that never come about, scam agencies that make outrageous promises and subsequently take no action. The only certainty appears to be that nothing is certain with a proposed loan modification.

In New Jersey, the United States Federal Bankruptcy Court has taken provisions to attempt some assistance with this process. In August of 2011, The Federal Bankruptcy Court approved a process whereby clients can request a loan modification as part of their bankruptcy proceedings. At the inception of the request, the mortgagee assigns a representative to work directly with debtor’s counsel in efforts to effectuate a loan modification. Thereafter, the mortgagee can obtain the requisite documentation needed to determine whether or not a loan modification is feasible and warranted.

While this process does not guarantee a loan modification will be granted by the lender, it does help avoid many of the complications associated with the process. To date, many of our clients have been able to retain homes that may have otherwise been lost if not for this new process.

I highly encourage individuals facing foreclosure to contact our office about this program. Upon so doing, we shall be able to determine whether or not the individual qualifies for this program and what steps should be taken to assure retention of the residence.

Speak Your Mind

*

contact the firm