New Jersey Bankruptcy Blog

Although the economy seems to be slightly recovering, one major problem regarding New Jersey citizens relates to the growing number of individuals who have experienced an absolute crumbling of equity in their homes. This results with the mortgage payoff exceeding the fair market value of their homes. Whether the inability to fulfill mortgage payments is due to poor budgeting, excessive spending, failed investments, or unemployment, those facing foreclosure have various options in achieving foreclosure resolution.
While understanding the foreclosure process in New Jersey to its full extent is something that cannot be done in a matter of minutes, for those facing foreclosure, it helps to be familiar with a few important points. First of all, it usually takes two to three weeks after a foreclosure complaint is filed with the court for the lawsuit papers to be served to you or someone at your residence. Once you have been given the legal complaint, you still have some time to devise a valid and effective plan to save the property before the sheriff’s sale. Although, the foreclosure process, from the time of service to the sheriff’s sale, may take in excess of one year, the homeowner, should explore their resolution options immediately.
The first page of the mortgage foreclosure document is called a summons, which briefly explains the homeowner’s rights, including the fact that the court permits the individual 35 days in which to file a response. Most people do not believe that they have a valid defense to the lawsuit because the foreclosure action is due to a default on the payments. However, their may be a valid defense that is unknown to the homeowner.
To learn more about what your potential options are for foreclosure resolution in New Jersey, please visit www.bankruptcylawyer-nj.com for more helpful information. As an experienced attorney, Robert Manchel can help you decide what the best option is based on the circumstances surrounding your financial obligations. Call 866-503-5655 today.

Despite President Obama’s introduction of the “Making Home Affordable” Plan in 2009, very few homeowners with delinquent loans are finding themselves able to renegotiate their mortgages. The President’s Plan was intended to stabilize the housing market and keep homeowners in their homes, by preventing avoidable foreclosures. However, this relief is proving hard to come by, as permanent loan modifications remain infrequent.
Under the President’s program, homeowners would be entitled to loan modification after a) directly contacting their lender, and b) establishing, within a three month window, that they qualify for the program and are able to make their initial payments. In theory, this would rescue numerous homeowners from the precipice of foreclosure. However, this process has proven to be both a bureaucratic nightmare and an opportunity for lenders to stall.
Lenders are providing a myriad of justifications for denying requests for loan modifications, such as: declaring that necessary documents have not been submitted; stating that some borrowers’ earned too much money to qualify for the program; or, alternatively, earned insufficient income to make modified payments. Meanwhile, borrowers are left in a state of bureaucratic limbo, as they slip further into debt, and are left unsure of the next reasonable move. If you find yourself in such a position, and are in need of sound advice, it is time to reach out to a New Jersey Bankruptcy Lawyer.
It appears that mortgage company executives are not receiving sufficient motivation to modify loans, largely because the incentives from modifying delinquent loans are quite often less than the fees collected from the delinquency. Consequently, many lenders are pushing toward foreclosure, and the resulting fees, rather than reasonably considering loan modification. Mortgage company executives do not have your best interest at heart, and therefore rather than waiting and hoping for lenders to provide relief, it makes sense to retain the services of a responsible and creative New Jersey Bankruptcy Lawyer. Contact skilled New Jersey consumer law bankruptcy attorney, Robert Manchel, to learn more about what foreclosure resolution options may be available to you. Call (866) 503-5655 today.
Sources:http://www.washingtonpost.com/wp-dyn/content/article/2010/03/12/AR2010031202580.html?hpid=sec-business;http://www.nytimes.com/2009/07/30/business/30services.html?_r=3

On Wednesday, March 24, Bank of America announced that it would eliminate as much as $3 billion in principal owed by thousands of delinquent homeowners whose mortgage balance was at least twenty percent greater than the value of their house. Bank of America’s new program is directed at borrowers who received high-risk loans form Countrywide Financial, a company purchased by Bank of America in 2008.
Bank of America’s newly announced loan modification program both differs from, and supplements, the government’s own modification program announced in 2009, in that it provides a reduction in principal owed, rather than merely a lowered interest rate. With home sales and prices dropping substantially, some commentators have welcomed this shift toward principal reduction, while others are more cautious, emphasizing that this represents yet another temporary fix to a larger crisis.
Bank of America will directly contact borrowers it deems eligible for the program. Eligibility is established where borrowers can demonstrate a hardship in making current payments, are at least sixty days delinquent on their loan payments, and owe at least 120% of the outstanding loan balance. The plan is designed specifically to address troublesome loans such as option ARMs, or adjustable-rate mortgages, of which there are an estimated 900,000 currently in existence.
If you are burdened with a high risk home mortgage, and are having difficulty making regular payments, this is certainly welcome news. However, there are many Americans who either will not be afforded access to this program, or will find that even with a mortgage modification they are unable to avoid a foreclosure action. In which case, it is time to call the Law Offices of Robert Manchel at (866) 503-5655. Our New Jersey bankruptcy attorneys can provide options for saving your house from foreclosure, with or without bankruptcy protection. Contact Robert Manchel today for a free consultation.
Source:http://www.nytimes.com/2010/03/25/business/25housing.html