The banks are not stepping up and making a high enough percentage of mortgage modifications permanent. Our firm represents many individuals on loan modifications and it is becoming increasingly difficult to successfully obtain favorable and permanent loan modifications. The banks are giving these trial modifications, but then not making the loan modification permanent.
New Jersey is second only to Florida in the largest percentage of foreclosure inventory, according to The Star-Ledger.
The National Association of Consumer Bankruptcy Attorneys (NACBA) has developed a Principal Pay Down Plan, which would provide immediate relief for qualified homeowners who find themselves underwater on their mortgages. Economists and other experts all agree that housing must stabilize before we have a full blown economic recovery. The Principal Pay Down plan proposes to reduce the interest rate on mortgages to 0% for 5 years, monthly payments would be lowered and every dollar applied to the principal. This Plan provides multiple benefits. It would help families trying to save their homes, stabilize communities, and help prop up the ever declining housing market.
