Homeowners should be aware that the State of New Jersey regulates who can submit loan modifications on behalf of homeowners. Individuals submitting loan modifications for homeowners must either be an NJ licensed attorney or be licensed by the New Jersey Department of Banking. If you are a homeowner in a active bankruptcy case, the Court must approve the individual assisting you in the loan modification process if it is someone other than your bankruptcy attorney.
A few red flags usually standout:
1) Beware of Loan Modification Companies which contact you from outside New Jersey;
2) Very often loan modification companies do not have a business address or physical location listed;
3) For some reason as with debt consolidation companies, loan modification companies are often located or have CA or FL area codes;
4) Loan Modification companies often will begin collecting their fees before a homeowner is even in default;
5) Loan Modification companies most often are not licensed by the New Jersey Department of Banking (and will not indicate that it is licensed by the state); and
6) Many companies will at least verbally promise success.
If you are in an active bankruptcy case please discuss your interest in obtaining a loan modification with your attorney. If your attorney cannot assist you with the process then she can probably referred you to a reputable attorney who can assist you. Homeowners beware as there are a lot of people looking to exploit your vulnerable and desperate situation.