Stressedinje…, Home Seller in Lawrenceville, NJ

I owe more than house is worth in NJ. Bought the home for $440K, worth $301K today. I lost my second source of income, too.

Asked by Stressedinjersey, Lawrenceville, NJ Fri Feb 11, 2011

We have never been late with a mortgage payment since we purchased the home in 2005. High medical bills and the loss of a second source of income have really rocked our world! Would I be eligible for the Mortgage reduction program?

Help the community by answering this question:


You have several options besides the ones presented already. So try to not panic, but don't drag your feet. Besides speaking with an agent, you might also want to discuss this with a financial planner.
2 votes Thank Flag Link Mon Feb 14, 2011
I thank all of you so much for your invaluable advice. My husband and I have contacted our bank and prayerfully will hear from them soon. It's such a stressful time, but know we'll weather this.
1 vote Thank Flag Link Mon Feb 14, 2011
I have seen people fill out application after application just to be turned down for modification loans. Unfortunately the only people I have seen succeed in a scenario such as yours are those that completely stop paying their mortgages therefore forcing their banks to the table. There are many factors to analyze and in my opinion those loan modification agencies are not the way to go, as I have seen for myself. Short sales are another option, and although it is not always require to be in default before a bank will consider you for a short sale, those that get priority are those in default.

My advise, seek an attorney with this type of expertise since he will guide you wisely. Nobody, outside of a attorney, can tell you whether to stop making your mortgage payments. While many Brokers are quite experts at these we cannot give legal advice. This goes especially for real estate salespeople that may be eager to help. The lawyer will be able to explain all the pros and cons of any decision you make, becayse after all, this is a very personal decision.
0 votes Thank Flag Link Fri Feb 18, 2011
Hello, So sorry about your problems! First off I am not sure your home is worth so little(if you are basing it on Zillow do not use that as your home value). Please consult a professional Realtor to see what can be done. Yes, it is possible, based on your situation that a modification can be done. Unfortunately banks want to see that you cannot pay and are not current. Your second source of income loss being the reason, I hope they will be receptive! Best of Luck, Allan
0 votes Thank Flag Link Fri Feb 18, 2011
I am always sorry to hear about people who, through no fault of their own, find themselves in these loss of equity positions. If it is any comfort most lenders are willing to work with you to help you keep your home by adjusting your mortgage payments to help you get pass the hard times. However, if you decide that, even with an approved mortgage reduction, you think it is in your best interest to sell your home then the lender has to be approached again to approve you selling under a Short Sale arrangement. This is not something that you should pursue without knowing the pros and cons that could follow you into the future.

I hope this very brief summary helps you prepare for your next steps. Please do not hesitate to contact me if I can be of assistance.

Gloria @ COLDWELL BANKER/Princeton
0 votes Thank Flag Link Fri Feb 18, 2011
Hi Stressed -

Yes, you may be in the running for a loan modification. Sounds like it to me. But of course, you would need to speak with your lender to discuss your options.

Please email or call and maybe I can help direct you to the right place!

John Sacktig
Broker /Manager
Orange Key Realty
SFR Certified - Short Sale and Foreclosure Resource
Direct: 732-213-1409
0 votes Thank Flag Link Tue Feb 15, 2011
That is a good idea, I have two resources that might be helpful - financial planners and also an attorney that has a great success rate with short sales. As with most things, but particularly when it comes to financial matters, aligning yourself with good resources is so important. If you would like the names of several financial planners and also the attorney that I refer my distressed business to - send me an email and I will happily provide their info to you.

The best advice you've gotten so far came from the prior poster and I will give thumbs up as soon as I finish my response - "don't panic - but don't drag your feet".

The best of luck to you,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference:
0 votes Thank Flag Link Tue Feb 15, 2011
Good luck and I hope you use dome of the advice received below, and I can tell you from all of us our thoughts and prayers are with as you go through these tough times. As for others that read these types of questions, always feel free to stop into a Realty office and ask to see what help you can get. Our businees is to sell and rent homes, but we are also your fellow neighbors and care and will offer what we can to help you stay in your home and to keep it!
0 votes Thank Flag Link Mon Feb 14, 2011
This website will give you information on the government loan modification and short sale programs:

As Joan says do not use a company that wants to charge you money to apply for and/or negotiate a loan modification. At worst they are scams and at best they are a waste of your money. Everything you need to do can be done by you directly with your lender. Good Luck.
0 votes Thank Flag Link Mon Feb 14, 2011
The "Making your home affordable" program, is a federal program that your lender can tell you whether you qualify for or not. If you don't qualify, you can qualify for a straight loan modification. I recommend only going to your lender, not an outside source. If that doesn't work, you may qualify for a short sale. If you need more information, please contact me at
Web Reference:
0 votes Thank Flag Link Sat Feb 12, 2011
Thank you so much for your help with your answers. We will get in touch with our mortgage lender and see what they can do. We would love to sell our home but realize we cannot given the market conditions and how very much the property has depreciated. It's a no win situation.
0 votes Thank Flag Link Fri Feb 11, 2011
Your lender can best answer your question, therefore consider a call and go from there.
0 votes Thank Flag Link Fri Feb 11, 2011
It sounds like you would make a great canidate for one, You should contact your loan servicer to discuss your options.
0 votes Thank Flag Link Fri Feb 11, 2011
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