Although the housing crisis that struck homeowner’s in the United States was at its peak several years ago, there are still many Americans who are suffering its aftereffects. People are finding themselves facing the very real prospect of losing their homes to foreclosure and having to make unthinkable decisions. Many believe that they have few or no options. But both the state of New Jersey and the federal government have taken several positive steps to try to help people who are in this situation. There are mortgage modification programs that can provide you with the chance to improve your situation. At Reinherz Law, we are here to help our clients understand what their options are for avoiding losing their homes. There were three New Jersey mortgage modification programs created to save homes from foreclosure.

• The New Jersey HomeSaver Program – Those who qualify for this program are able to receive up to $50,000 from the U.S. Treasury’s “Hardest Hit Fund” to refinance, recast, or make a permanent modification to their existing first mortgage. By doing any one of these three steps, homeowners are able to lower their monthly mortgage modification to an amount that is more manageable. This program is administered by the New Jersey Housing and Mortgage Finance Agency (NJHMFA).
• The New Jersey Judiciary Foreclosure Mediation Program (NJJFM) – This program does not provide financial support. Instead it gives homeowners access to qualified mediators who are able to represent them in discussions with their lender. By accessing these professionals homeowners who are in trouble can have the confidence of knowing that the person speaking to their mortgage lender is knowledgeable about the ins and outs of mortgage modifications.
• The New Jersey HomeKeeper Program – Though the funds for this program have been exhausted, it provided up to 12 months of mortgage payment assistance for those who experienced an income loss.

In addition to the programs offered by the state of New Jersey, the federal government also provides several foreclosure prevention programs. Most of these programs support the initiatives offered to the state. These include the National Foreclosure Mitigation Counseling Program (NFMC), which provides housing counseling to those who are at risk for losing their homes to foreclosure.  In New Jersey this program is offered through a group called Neighborworks America. There is also a federal program called Making Homes Affordable that works with and the NFMC group to train counselors in recognizing when homeowners are eligible for modifications, principal reductions and refinances.

Because New Jersey had so many residents who were severely impacted by the housing crisis, it was categorized as a “Hardest Hit” state, and that means that monies from the Hardest Hit Fund (HHF) were made available to avoid foreclosures. If you are facing the prospect of losing your home and need legal counsel, the attorneys at Reinherz Law can help. Contact us today to make an appointment to discuss the options that are available to help you hold on to your home.