Helping New Jersey Families with

Mortgage Foreclosure and with Banking


Written by New Jersey Foreclosure Law Attorney Fredrick P. Niemann, Esq. of Hanlon Niemann. (Read more about Mr. Niemann here)

In May, the White House signed into law the Helping Families Save Their Homes Act of 2009.  As its name suggests, this law includes several provisions to help distressed homeowners.


Loan modifications and short sales


Homeowners with financial woes often ask lenders to modify their mortgage loans.  A modification is a permanent change that results in a lower interest rate, a maturity date extension, a change from an adjustable to a fixed interest rate, a reduction of principal, or some combination of these features.  Alternatively, troubled homeowners may request a lender’s permission for a short sale.  That’s a transaction in which the house is sold and the lender receives less than the outstanding mortgage balance.


Under the new law, mortgage companies must modify existing loans or approve short sales in specific situations.  In essence, the requirement takes effect if a foreclosure is likely and the mortgage company would recover less from a foreclosure than it would from a loan modification or short sale.  This provision applies only when the borrower occupies the home as a principal residence.


A better law for homeowners


In 2008, Congress passed a law that included a HOPE for Homeowners program.  Under this program, lenders would replace existing mortgages with new 30-year, fixed-rate loans for 90% of a home’s appraised value in order to avoid a larger loss in a foreclosure.  The program resulted in very few refinanced mortgages because it had intimidating red tape and eligibility requirements.  Under the new law, mortgage companies will receive more compensation from the federal government for completed transactions, and homeowners will incur lower costs.


Tenant protection


In some cases, lenders who have foreclosed on rental properties have evicted tenants even though they have been meeting their obligations.  Now, lenders who foreclose on rental properties must allow tenants to occupy the property until the home as his or her primary residence, the new owner must give the tenant at least 90 days notice before forcing the tenant to leave.


Borrower notification


Many home mortgage lenders sell their loans to investors, who may resell those loans.  The recently passed law requires the new mortgage owner to notify the borrower within 30 days after the sale of a mortgage on a primary residence.  That’s true even if the company servicing the mortgage remains the same.


Federal deposit insurance

Federal laws often cover a lot of ground.  The new Helping Families Save Their Homes Act also includes an extension of expanded insurance for bank accounts.  Last year, Congress passed a law that expanded federal insurance from $100,000 per depositor per bank to $250,000.  That "temporary” extension was scheduled to last through 2009; the new law continues the expanded insurance coverage through 2013.



If you have any questions, contact Fredrick P. Niemann, Esq. toll-free at (855) 376-5291, or fniemann@hnlawfirm.com.  He is happy to answer your inquiries.





Our New Jersey Foreclosure lawyers can help you to determine your needs.
 
Call Fredrick P. Niemann, Esq. toll-free

at 855-376-5291 or e-mail him at fniemann@hnlawfirm.com today.

Fredrick P. Niemann, Esq.,

a NJ Foreclosure Lawyer

 




Freehold, Red Bank, Wall, Long Branch, Marlboro, Manalapan, Howell, Jackson, Brick Township, Holmdel, Middletown, Atlantic Highlands, Aberdeen, Toms River, Manahawkin, East Brunswick, Monroe Township, Cranbury, Lyndhurst, Teaneck, Hamilton, Robbinsville, Millstone, Manasquan, Lakewood, Eatontown, West Long Branch, Tinton Falls, Ocean Township, Neptune, Spring Lake, Newark, Hillsborough, Somerset, Hoboken, Jersey City, Parsippany, Edison, Plainfield, South Plainfield, Dumont, Mount Laurel, Vineland, Cherry Hill, Ocean Township, Atlantic City, Camden, Union Township, Kearny, Lambertville



Hanlon Niemann - Law Firm
3499 Route 9 North, Suite 1F, Freehold, NJ 07728
Phone: Toll Free: (855) 376-5291

Site © Hanlon Niemann Law Firm 2013




Google

COPYRIGHT

Copyright © 2013 Hanlon Niemann, P.C. All rights reserved. All information presented in this website is copyrighted by Hanlon Niemann, P.C., or other individuals or entities as designated. Any republication, retransmission, reproduction, downloading, storing or distribution of all or part of any materials found in this publication is expressly prohibited.


NO REPRESENTATIONS

This material may contain technical or typographical errors. Hanlon Niemann does not guarantee its accuracy or completeness or suitability. IN NO EVENT SHALL HANLON NIEMANN BE LIABLE FOR ANY SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES RELATING TO THIS MATERIAL, FOR ANY USE OF THIS PUBLICATION. Hanlon Niemann takes no responsibility and makes no warranty whatsoever for the content or information contained herein.


Information on this website has been prepared for general information. It is not meant to provide legal advice with respect to any specific matter and should not be acted upon without professional counsel.