New Jersey Bankruptcy Blog

After luring potential and current homeowners in with the promise of low payments, many mortgage companies have now jumped quickly at the chance to foreclose on homes in which payments have faltered. According to a Reuters.com article, Connecticut’s attorney general has recently asked state courts to freeze home foreclosure proceedings for 60 days while the business practices of mortgage companies, namely JPMorgan Chase & Co, are investigated. This is on the heels of borrower complaints that they were misdirected by their lenders.
According to the article, deceptive lenders first acquired business from unsuspecting homeowners by offering adjustable mortgage rates, which began with low payments but soon escalated to larger payments. Now, investigations are being conducted into how foreclosure proceedings are being handled. This is primarily because foreclosure documentation is being submitted incorrectly by mortgage companies, possibly because they either don’t fully understand the provisions of the documentation or are simply attempting to unfairly expedite the foreclosure process. Either way, it appears as though some individuals are having foreclosure thrust upon them without a completely valid reason.
Economic uncertainty has led to foreclosures and bankruptcies all across the country. For residents in New Jersey, the risk of losing their homes is at an all time high, particularly if an unethical mortgage company is involved. For more information about foreclosure in New Jersey, please contact the experienced New Jersey foreclosure resolution attorneys at the Law Offices of Robert Manchel. Our foreclosure attorneys will help you make the best possible decisions in regard to your financial future. Call us today at 866-503-5655.

The fear of foreclosure continues to affect the peace of mind of individuals all across the country. While the unethical business practices of mortgage companies and lending institutions are examined by government agencies, there are groups that are seeking to assist individuals avoid foreclosure and save their homes. According to a Los Angeles Times article, one such group, the Neighborhood Assistance Corporation of America (NACA), held a refinancing event at the Los Angeles Convention Center that began September 30.
Reportedly, the five-day event was aimed at individuals who are at risk of losing their homes to foreclosure. The NACA, a national mortgage company, offered assistance to individuals by restructuring their current mortgages in order to make monthly payments more manageable. This was the second year of the company’s “Save The Dream Tour”, which travels the country in hopes of helping individuals save their homes. Typically, the NACA is able to lower interest rates to 2 or 3 percent. In 2009, the NACA saw an average of 30,000 people at each of its 12 events across the country.
While lower interests rates will certainly prevent many people from losing their homes, there are still some circumstances under which decreased monthly payments may not be enough. Filing for bankruptcy is a viable option for many individuals who have accumulated debt and simply cannot afford to pay their debt on their own. Whether one chooses to file for Chapter 7 bankruptcy protection or Chapter 13, filing for New Jersey bankruptcy can be a complicated process that requires the assistance of an experienced bankruptcy attorney.
The skilled New Jersey bankruptcy attorneys at the Law Offices of Robert Manchel assist individuals in New Jersey who are thinking of filing for bankruptcy, including those who are at risk of losing their homes. In some cases, bankruptcy may help an individual save his or her home. For more information about what bankruptcy can do for you, please call an experienced New Jersey bankruptcy lawyer today at 866-503-5655.

All across the country, reports of foreclosure rates on the rise are finding their way into local television reports, periodicals, and newspapers. Lately, homeowners who are in danger of banks and lending institutes foreclosing on their property, are being afforded the opportunity to short sell their homes for less than what they owe on their mortgages. According to a NY Times article, current government funded incentives have nearly quadrupled the number of short sales made across the country, in comparison to figures from 2008.
Reportedly however, fraudulent activity regarding short sale practice is becoming more prevalent. In some cases, lenders sell homes to “straw buyers,” or those individuals who are actually affiliated with the lender, for less money. Thereafter, the lender turns around and sells the home for a higher, more market-friendly price. This is done unbeknownst to the original homeowner who authorized the short sale, in the first place.
In other cases, homeowners may purposefully default on their home loans and short sell their house to a friend, who would pay less than the amount due on the loan. Thereafter, the homeowner would continue to live in the house and pay the monthly mortgage payment, which is less than the previous monthly payment. At that point, the homeowner’s friend, who purchased the home, may transfer ownership to the original homeowner via the quitclaim deed process. Nationwide, the state of New Jersey ranks eighth in terms of the number of fraudulent short sales, with 3.3.% of all those sales being deemed suspicious. Furthermore, the article warns against real estate agents who claim to be foreclosure specialists.
If you are thinking of short selling your home, or selling real estate in New Jersey, your best defense against fraudulent activity involves retaining the services of an experienced bankruptcy protection lawyer. At the Law Offices of Robert Manchel, our skilled New Jersey foreclosure resolution attorneys will see to it that you are not taken advantage of during an already difficult time. For more information about your rights and options, please call 866-503-5655 today.

While the U.S. Department of Housing and Urban Development is doing what it can to offer assistance to those in danger of losing their homes to foreclosure in New Jersey, there are still far too many people losing their houses each day because they are unable to make their mortgage payments. According to an nj.com news article, HUD’s neighborhood stabilization program is now allowing some low to moderate income individuals to purchase homes rather than lose them, all in hope that such action will help revitalize the housing market. To date, a total of $122 million in aid has been provided by the federal government to assist individuals with their housing needs.
Currently, the stimulus program is in its third phase, with $2 million being funneled to the community of Newark alone. To date, a total of 47 houses have been purchased throughout Newark using HUD funding. More specifically, these homes were purchased by the nonprofit organization HANDS Inc., which did repair work on the houses prior to selling them at discounted prices to program qualifying families. According to one fortunate resident who has benefitted from the program, “The prices of the homes are low enough where people — working people — could buy them.”
While government assistance is certainly key to helping the economy recover, many individuals may still require even more help in getting their finances back on track. In some cases, the best option available to an individual may be filing for bankruptcy protection under New Jersey law. However, the details surrounding the filing process can be complicated, so it is highly recommended that individuals thinking of filing for bankruptcy in New Jersey consult an experienced bankruptcy attorney as soon as possible. In some cases, individuals facing foreclosure may even be able to remain in and save their house via filing for bankruptcy.
At the Law Offices of Robert Manchel, our New Jersey foreclosure attorneys can assist you with all matters pertaining to your house’s foreclosure. For more information about foreclosure and bankruptcy protection in the New Jersey area, please contact our offices today at 866-503-5655.