Why it is best to hire a lawyer for a loan modification in New Jersey

People in New Jersey who are thinking about modifying their mortgages will do well to enlist the help of a lawyer.

New Jersey homeowners who struggle to pay their mortgage may find themselves in danger of losing their homes if they are not able to catch up. While it is possible to succeed in changing the terms of a mortgage without the assistance of an attorney who understands loan modifications, it is often in a borrower’s best interest to allow a legal professional to step in.

Improve chances of success

Loan modifications and delayed foreclosures have been achieved without lawyers in the past, but the chances of success are often greatly improved when a lawyer is involved in the process. The reason for this is because law firms have the persistence and knowledge necessary to find out whom they need to speak with to stop the sale of a home. What is more is lawyers are aware of government homeowner-assistance programs that may pull borrowers out of a tight situation.

They know which legal steps to take and when to take them

When a loan modification is not possible, or if a foreclosure seems imminent, a lawyer knows when it may be time for a client to consider seeking bankruptcy protection to stop a foreclosure. Before choosing bankruptcy, a lawyer might suggest filing an order that provides just cause for stopping a foreclosure. A person working alone may file for bankruptcy when he or she does not have to, or the person might be unaware of which order to file to cease a foreclosure.

May save time and money

Borrowers who attempt to handle their own loan modifications without legal help may find the process is more time-consuming than they originally thought. It is not unusual for borrowers to be on the phone for several hours per week attempting to work out the details of a loan modification. These hours may take time away from work, family and personal time. While the services and skills of a lawyer cost money, it might be worth it compared to the productivity lost when a borrower attempts to arrange a modification on his/her own.

Some may modify a loan for free

Depending on the law firm, there is a chance a borrower might find a lawyer to take care of the loan modification for free. Before working with such lawyers, it is best to make sure they are approved by the Department of Housing and Urban Development.

New Jersey homeowners who feel they might be unable to make future payments on their mortgages should take the proactive approach. Speaking with a lawyer now may help avoid a financial fiasco in the future.