NJ Smart Start

by Michelle
(New Jersey)

If I have NJ Smart Start 2nd Loan, that is forgiven in 3 more years, can I still get a HAMP loan modification without paying that back, or do i have to pay it back first?

Mortgage Loan Modification Answer:

Hi Michelle,

I don't see why you shouldn't be able to obtain a HAMP loan modification if you qualify, even if you have an NJ Smart Start 2nd mortgage loan.

NJ Smart Start will have to continue to be subordinate to the first mortgage, which should not be a problem because you're applying for a loan modification, not a refinance.

Unless, your contract for the NJ Smart Start specifically states that their terms change if you obtain a loan modification on your first mortgage. You need to read your NJ Smart Start paperwork carefully to make sure there are no restrictions as to the refinancing or modification of your original first mortgage.

As it sometimes goes, the fine print might contain restrictions and exemptions that were not fully explained or disclosed to you when you bought your house.

If you need further guidance, I highly recommend No Upfront Fee Loan Modification as the best option to explore first. Read the reasons why.
All the best,


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