Banks Seeking Solutions to Help Homeowners
Although the number of foreclosures in New Jersey this year is rising, many banks – such as Bank of America, Wells Fargo and Chase – actually want to help keep homeowners in their homes or find alternatives to foreclosure.
For example, these banks are conducting all day conferences all over New Jersey where persons who are having trouble with their mortgages can come and talk to bank officials face to face and discuss how to find a solution to their individual mortgage problems. These banks realize how hard it is for people to deal with this type of information on the phone, so they set up these events where people can deal with a mortgage specialist in person.
According to Bank of America’s Vice President of National Mortgage Outreach, about 40% of the people who come to Bank of America’s events may receive a decision about their loan modification that day.
However, residents should know that even if modifications are not worked out, other alternatives exist, including an option known as a “short sale.” Unlike a modification, a homeowner does not stay in the residence following a short sale. However, the short sale allows the homeowner to avoid a costly, stressful, and credit-damaging foreclosure. You should check with your individual bank and contact one of our Burlington County short sale lawyers to assist with this matter.
Working with Banks to Avoid Foreclosure
Unfortunately, there is a misperception that the homeowner-bank relationship must be contentious. That is not necessarily true, as banks are often interested in finding resolutions that benefit the banks as well as the one struggling with mortgage payments. Virtually all major banks have various programs in place to assist in these matters, including both loan modification options and streamlined short. It has been several years since the housing crisis sent home values plummeting and threw many families into a financial tailspin. Many have yet to fully recover. One of the most common problems involve families who are not yet in default but may be having problems refinancing the home because it is now worth less than the original mortgage (underwater).
In these situations you may want to consider working with a legal professional on alternatives. A wide range options exists, including assistance via government programs and unique solutions offered by each individual lender–including the large companies like Bank of America, Chase, Wells Fargo, and others.
Yet, countless homeowners fail to take advantage of these options. Many do not even know that these programs exist. Others have heard of assistance for homeowners but worry about the cost of participating or the cost of having professional help. It is vital to understand that having assistance with these deals, like a short sale, does not cost a homeowner anything. A legal professional who helps ensure the deal goes through is usually paid as part of the real estate transaction closing costs by the bank. In other words, homeowners literally have nothing to lose by contacting a lawyer and learning more.
If you would like help with any of these matters in our area, please contact one of our Moorestown short sale lawyers to guide you in this process.