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Stop Foreclosure | New Jersey

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Stop Foreclosure | New Jersey

Stop Foreclosure

stop foreclosure new jersey lawyer

Have you been served Foreclosure papers in New Jersey?

Don’t panic! The foreclosure process takes time, usually as much as a couple of years. New Jersey is a so-called “judicial state” in foreclosure proceeding – the foreclosure must proceed through the court system.

Although there is time to take action, the sooner the better. Contact your lender immediately to apply for loan modification. The longer you wait, farther behind you’ll get in your payments, creating “arrears” in your loan.

The most common reason loan modifications are denied is errors in the paperwork. If your modification is denied or you’ve been told you can’t qualify, then have your paperwork reviewed by a qualified attorney and re-submit your application.

If it turns out you’re unable to qualify (which an attorney can help you determine), then investigate Chapter 13 bankruptcy. The terms of Chapter 13 will involve a restructuring of your debt into a payment plan you can afford, if you’re still working and have enough income to make the payments in your payment plan. Often a homeowner can qualify for a modification under the terms of their Chapter 13 plan after an unsuccessful application before filing. Arrears are added to the loan principal, the interest is reduced or set to around 4%, and the term of the loan may be extended to 45 years, with some closing fees waived.

Although principal reduction has been in the news, with the White House advocating strenuously on behalf of it, the truth of the situation is that principal reduction is extremely rare. Many unscrupulous operators have sprung up promising principal reduction for large upfront fees. Beware scam operations! Talk to an attorney you trust before committing to such a program.

The total of loan principal and interest (P&I) should be close to 30% of your gross income to qualify for a home loan modification.

It’s extremely difficult for the self-employed to obtain a modification, but may qualify under Chapter 13.

Should I use a Foreclosure Defense attorney?

Another scam that has become increasingly common is a promise of Foreclosure Defense. Although for a period of time Foreclosure Defenses were more commonly heard by the courts in the wake of mass errors and shoddy practices by lenders, these actions have abated and are unlikely to succeed without a legitimate complaint of unrecorded payments. If you sent a payment that’s not showing up in the statements you’re getting, you might have a case.

Beware services that promise Foreclosure Defense for large upfront fees or monthly retainers for the duration of your occupancy. Consult an attorney you know and trust before entering into any such agreement. Research any offer you’re considering. Look them up on Google and search for possible complaints.

Should I use a Loan Modification service?

Another scam that’s emerged recently is Loan Modification Negotiation or Assistance Services with large upfront fees, claiming government affiliation or non-profit advocacy. For a large upfront fee, such services offer principal reduction or unbelievable terms. Remember, principal reduction is extremely rare. Research any offer and any company you’re thinking of doing business with.

It’s possible to stop a sheriff’s sale with an automatic stay under a Bankruptcy filing, which must be confirmed to remain permanent.

Find a listing of impending sheriff sales for your New Jersey county

Contact Todd Murphy Law today, your qualified New Jersey foreclosure specialist.

Serving:
Bergen County
Essex County
Hudson County
Hunterdon County
Middlesex County
Morris County
Somerset County
Union County

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Get My Life Back

Get Your Life BackFinancial trauma be devastating, affecting your quality of life.

Medical emergency is the most common cause of financial trauma
Source: CNBC

Last year, there were 1,107,699 bankruptcy filings in the United States.
Source: uscourts.gov

Job loss is the second most common cause. As of the end of 2013, over 10 Million people were unemployed in the United States.
Source: Bureau of Labor Statistics

Credit scores are widely used for loans, insurance and employment applications.
Source: banking.about.com

Recovering from financial trauma takes time and effort – but it’s possible.

Step one – Communicate with your creditors

As long as it’s possible to continue to make payments, creditors are usually willing to renegotiate loans and maintain a constructive relationship with you.

Step two – Restructure your finances

Through debt consolidation, refinance of real property, loan or mortgage modification, debts can be restructured within a payment plan and paid off at a pace you can afford.

Step three – Stop all payments

What if you’ve lost your income, been unemployed for an extended period or become disabled? What if you’re unable to make payments, unable to qualify for loan modification or other creditor accommodation?

Bankruptcy is a legal means of wiping your debt while possibly keeping your home or other assets. Your debts can be discharged on the completion of bankruptcy.

Bankruptcy is not the end – it’s a new beginning.

Bankruptcy can have the unexpected effect of improving your credit score. Even after financial difficulty, there are many steps you can take to improve it.

Although some kinds of debt such as tax liabilities and student loans can’t be wiped completely in bankruptcy, terms can be modified and accommodations made with creditors in a manner consistent with your new circumstances. Even if you’ve become disabled, financial recovery is possible by obtaining disability assistance and restructuring your finances.

Never give up hope! Get to work on solutions to all of these problems.

Let us help.

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How can I save my home from foreclosure?

It’s possible in many cases to save your home despite periods of financial difficulty.

The steps that can be taken are:

Home Loan Modification. It might be possible to reduce the payments by extending the term of the loan, adjusting the interest payments, and in some cases reduce the principal balance on the mortgage, or some combination of these three. There is a threshold of qualification for modification.  The bank needs proof of ability to pay, with the principal and interest no greater than thirty percent of income after the refinancing. Loan modification requires full documentation and takes place at a closing, similar to a purchase or sale.

Chapter 13 bankruptcy. There are thresholds for qualification. The court requires a means test, establishing that you’ll have the ability to pay on a payment plan, making partial restitution to your creditors (often at a fraction of the balance due) with the debts discharged completely at the end of the payment plan. Your home can be protected. Second and third mortgages can become severed from the home and added to the pool of consumer debt covered by the payment plan.

Chapter 7 Bankruptcy If you have limited equity in the home and enough income to pay the mortgage, it might be possible to keep your home under Chapter 7 bankruptcy.

  • If you have a very high amount of consumer debt, like credit cards debts or payday loans, it can be nearly impossible to qualify for a loan modification or a chapter 13 bankruptcy. However, a chapter 7 bankruptcy can eliminate these consumer debts and as a result allow you to qualify for a loan modification or chapter 13 bankruptcy. This little trick of using a chapter 7 to qualify for a chapter 13 is referred to as a “chapter 20 bankruptcy.”
  • To learn more about how chapter 7 bankruptcy could be a good strategy for you, read our post: When Is A Chapter 7 Bankruptcy Useful? (P.S. It even goes over what to do if you can’t save your home, or don’t want to)

 

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New Jersey Real Estate Law

Todd Murphy Law practices all aspects of Real Estate Law in New Jersey.

  • Closings
    • Purchase
    • Sale
    • Refinance
    • Loan Modification
  • Easements and Variances
  • Condominium and CoOp Charters
  • Foreclosure Defense