The attorneys at Kasen & Kasen, P.C. regularly represent individuals seeking to obtain mortgage relief (e.g. loan modification, forbearance, deferral, refinance, deed in lieu of foreclosure, short sale, reverse mortgage, etc.).
Special circumstances enabling Mortgage Relief
Fannie Mae Flex Modification
The Fannie Mae Flex modification replaced the Home Affordable Modification Program (HAMP) that ended in December, 2016.
Under the Fannie Mae Flex modification, qualifying homeowners with Fannie Mae mortgages are given an opportunity to: (1) stay in their homes; (2) make their loan current; (3) avoid foreclosure; (4) lower their mortgage payment by as much as 20% (with an adjustment of your interest rate, loan duration or forbearance of a portion of your unpaid principal balance); and (5) add the past due amount to the unpaid loan balance and recalculate their monthly payments over the new loan term (so they won’t have to pay the past due amount upfront).
Fannie Mae Disaster Relief Modification
Under the Fannie Mae Disaster Relief modification, homeowners with Fannie Mae mortgages are given an opportunity to receive a 12 month forbearance following a disaster. Once the forbearance plan expires, homeowners must resume making their monthly payments and either: (1) reinstate the total past due amount; (2) negotiate a repayment plan for the past due amount; (3) extend modification for disaster relief; or (4) negotiate a Fannie Mae Flex modification.
Freddie Mac Flex Modification
The Freddie Mac Flex modification replaced the Freddie Mac Standard and Streamlined modifications.
Under the Fannie Mae Flex modification, qualifying homeowners with Fannie Mae mortgages are given an opportunity to stay in their homes, make their loan current and avoid foreclosure.
New Jersey Bankruptcy Court Loss Mitigation
The attorneys at Kasen & Kasen, P.C. regularly represent individuals seeking to obtain mortgage modifications/loan modifications or other related forms of mortgage relief (e.g. refinance, deed in lieu, short sale, etc.) through the United States Bankruptcy Court for the District of New Jersey’s Loss Mitigation Program (LMP).
LMP is a Court supervised program providing a forum for homeowners and lenders to negotiate mortgage modifications/loan modifications, refinancing, deeds in lieu of foreclosure, short-sales, etc.
LMP is beneficial because it, among other things, imposes strict deadlines which facilitates a speedy process, utilizes an online web portal which expedites the exchange of information between homeowners and lenders, requires lenders to act in good faith, and provides Bankruptcy Court supervision of all negotiations.
While lenders are not required to make deals with homeowners under this program, and success is not guaranteed, the attorneys at Kasen & Kasen, P.C. have had some great success with obtaining loan modifications, deeds in lieu, cash for keys and consummating short sales for a number of our clients over the years by utilizing the Court’s Loss Mitigation Program.
CARES Act Foreclosure Moratorium and Forbearance
The Coronavirus Aid, Relief, and Economic Security (CARES) Act that was signed into law on March 27, 2020, puts in place protections for homeowners with federally backed mortgages (FHA, VA, USDA, Fannie Mae, Freddie Mac) who are experiencing financial hardship due to the Coronavirus pandemic.
First, a moratorium has been put in place where lenders are prohibited from beginning a foreclosure action or finalizing a foreclosure judgment or sale. The protection began on March 18, 2020, and extends through at least August 31, 2020.
Second, homeowners experiencing financial hardship due to COVID-19 have a right to request and obtain forbearance for up to 360 days with no additional fees, penalties or additional interest (beyond scheduled amounts), added to their account.