The mere prospect of losing your home can have an incredibly negative effect on your mental health. Where will you live? Can you even afford to live somewhere else? How will your children cope with losing their home? What will happen to all of the money you already put into your home? You just want to find a way to make things better so that you and your family can stay in your home.
On July 31, 2017, the New Jersey Supreme Court in GMAC Mortgage, LLC v. TamiLynn Willoughby said that the Chancery and Appellate Courts incorrectly found that a settlement agreement between a homeowner and GMAC Mortgage, LLC was provisional and not enforceable, which ultimately led to her home being sold to GMAC at a sheriff's sale for $100.00. In a unanimous opinion, the Supreme Court reversed that result and enforced the agreement.
Fannie Mae and Freddie Mac are introducing a jointly developed new mortgage loan modification at the direction of the Federal Housing Finance Agency, which has been named the Flex Modification.
People who are overwhelmed by debt are unfortunately also targets for con artists. Scammers have learned that desperate people often make rash decisions when trying to improve their financial troubles. One area where scammers prey on individuals in financial distress is by offering fraudulent foreclosure and loan modification assistance.
If you are trying to decide whether to refinance or modify your mortgage, it is important to understand how each option works. Many homeowners are surprised to learn that they can modify their mortgage even when they are current on their payments. It isn't a common occurrence, but modifications (also called "recasts") of current mortgages have been available for years.
New Jersey has consistently been ranked as one of the states with the highest rate of foreclosure in the nation. Many of the troubled mortgages relate back to the financial crisis of 2008. Homeowners were sold mortgages with adjustable interest rates, interest-only loans, or other types of mortgages with risky loan terms that put the borrowers at risk for defaulting on their payments and facing foreclosure.
If you are facing foreclosure of your home, a loan modification may be the answer to your troubles. Before you modify a loan, it is important to understand the pros and cons, including: