Loan Modifications In New Jersey

New Jersey has now joined the team of states that do not want their residents to get assistance. I was recently doing some research to find a legitimate loan modification company in the state of New Jersey. What I've found is that are NONE. Governor Cozine and Commissioner Steven Goldman had now passed legislation that prohibits licensed mortgage professionals from doing loan modifications. In order to do loan modifications, you have to have a "debt adjuster" license. Upon researching the requirements for a debt adjuster I found that ONLY a non-profit organization can get a debt adjusters license. If you go to the State of New Jersey's Department of Banking and Insurance's website, you'll get a list of entities that can offer foreclosure assistance, and another list for debt adjustment. Of course you know me......I decided to start calling asking for assistance for my "Aunt Sally" that lives in New Jersey and needs help....This is what I found.

The first list for foreclosure consulting are all non-profit organizations, and were actually willing to help people for about $100. Clearly more than reasonable. So I inquired to their process and what I could hope to expect. Basically they will supply you with the hardship documents (what we give for free), explain how you need to cut your utilities down, and then submit your paperwork to your lender. I asked who did the negotiations.....she explained that they don't negotiate. She further explained to me that NOBODY can negotiate with the lenders and it's just a simple paperwork process. I politely explained my own experiences in dealing with Ocwen and getting my own modification. I explained to her in detail the original offer that was made, the counter offers that I came back with , and eventually the modification I was granted. She then explained to me that "some" of the lenders will allow for negotiation, but most of them are just trying to give out the best deals that they can........No, I didn't ask her what world she lived in or what bottle she had in her drawer. I simply explained that I was looking for a legitimate company that CAN/WILL negotiate for my Aunt, even for a small fee. She advised for my Aunt to contact her lender directly. My final question to her was, "What happens if the lender declines the file, and the homeowner is then left at square one and 3 months behind the curve?" Her response was verbatim, " I don't know......but we've had a lot of banks that are declining the files". I don't know either, but it doesn't sound like that solution is working out so well for the residents of New Jersey.

The second list was for debt adjustment, and they were all credit card counseling services. I asked ALL of them if they did loan modifications. There was ONE company that said that they did them, but only in the state of Arizona. Everyone else offered a referral to a HUD counselor for their mortgage.........of course that's IF you want to enroll in their credit card program for $40 a month. By the way......don't think that because someone is a non-profit organization that they aren't going to ask you for money. The definition of a non-profit is merely that at the end of the year, they don't show a profit on their books. So if they're paying $5 for a roll of toilet paper and they're founders have large paychecks, then they can easily "zero" out at the end of the year, even though they actually did VERY well.

So to sum up you have four choices if you are a resident of New Jersey and would like assistance:
1) Call your lender yourself and negotiate your terms
2) Call a non-profit debt adjuster (you'll end up negotiating your terms)
3) Call a Credit Card Counselor, enroll in their program, and then get a referral to #2.
4) Contact an attorney that is exempt (ANY attorney that DOESN'T practice in debt adjustment).

Maybe I should consider asking Mr. Corzine and Mr. Goldman what they're doing on their lunch breaks........because it obviously isn't protecting and helping their residents.