Foreclosure is a difficult process, especially since the place where you live may be at stake. Even if the lender has initiated foreclosure proceedings, it is not guaranteed to happen. Whether your attorney can successfully work with your lender to forestall the proceedings or pursue relief through the bankruptcy process, you have legal options. Our experienced Jersey City bankruptcy lawyers at Consumer Law Attorneys can work with you on ways to potentially keep your home.
Mortgage Relief Programs in New Jersey
You may qualify for help in keeping your home. New Jersey runs a program called Emergency Rescue Mortgage Assistance (ERMA). The scope of this program is limited to those who have been affected by COVID-19. Even though the pandemic has ended, the program is still in place. ERMA offers up to $75,000 in mortgage assistance per household. This funding may even be used for missed mortgage payments.
New Jersey also offers a foreclosure mediation program. Although the state itself cannot stop the foreclosure (that is reserved for the courts), it can serve as a third-party neutral when there are disputes between you and the lender. You may also receive counseling on how you can avoid foreclosure, although navigating those options without legal representation can be difficult, and you may be better off with the help of a bankruptcy lawyer.
Loan Modifications and Forbearance Options
Federal law requires that your lender reach out to you when you are more than 30 days delinquent on your mortgage payment. They must explain the options that are available to you, even though your lender is not obligated to offer you a modification or forbearance.
However, there are times when it may be in your lender’s best financial interest to entertain some sort of relief. For example, they may not want to sell your home in a declining market. The lender can be penalized for a foreclosure by the company that has backed the mortgage loan. Your lender can help by pausing your payments for some time, reducing the total amount of money that you owe, or lowering the interest rate. Your bankruptcy lawyer in Jersey City can negotiate with the lender on your behalf to see if they are willing to assist in the short term.
How Bankruptcy Helps You Keep Your Home
You may not ordinarily think of bankruptcy as a process that can help you save your home (you may be thinking of Chapter 7 bankruptcy, in which you may need to liquidate assets). When you file under Chapter 13, you will get more breathing room. As soon as you file for any type of bankruptcy, there is an automatic stay that goes into effect, and it automatically stops all efforts to foreclose on your home.
In Chapter 13 bankruptcy, you enter into a repayment plan for the money that you owe. The mortgage payments that you have missed become part of what you must pay back over time. So long as you can both make the monthly payments on your restructuring plan and your mortgage, you can keep your home. Thus, Chapter 13 can actually work in your favor when you are facing foreclosure.
Consulting a Jersey City Foreclosure Attorney
A Jersey City foreclosure attorney can provide strong legal protection for your home in New Jersey. They can work on a multi-pronged strategy with the aim of allowing you to keep your home. First, they can assess the facts of the individual foreclosure action to see if the lender has followed the law and proper procedures. If not, your attorney can challenge the foreclosure in court on your behalf, as the lender needs an order from the judge before they can take your home.
Your foreclosure attorney will also have experience in the bankruptcy process. They can analyze your situation to help determine whether seeking protection under Chapter 13 is a better way to keep your home. Then, they can represent you throughout the bankruptcy process by completing all filings and communicating with the bankruptcy trustee. Your bankruptcy attorney can propose on your behalf a repayment plan that can help you get back on track financially.
Contact Our Jersey City Bankruptcy Attorneys
Do not let foreclosure simply take your Jersey City home without exploring your options. Bankruptcy can provide immediate protection through the automatic stay, stopping foreclosure auctions and giving you time to explore solutions. At Consumer Law Attorneys, our experienced bankruptcy and foreclosure defense team understands how to leverage bankruptcy laws to protect your property and financial future. We will evaluate your situation, explain all available options, and fight aggressively to save your home.
Contact Consumer Law Attorneys today at (877) 241-2200 or message us online for a free consultation and discover how bankruptcy can stop foreclosure.
