Newark, NJ Bankruptcy Lawyers
In tough economic times, mortgage foreclosures increase. The result is significant pain and hardship for all Americans. Most people, when they learn they may lose their home, do not know what to do or where to turn.
One option is bankruptcy. Either Chapter 7 or Chapter 13 bankruptcy can stop foreclosure actions immediately and give you time to figure out what to do. In some cases, you may be able to keep your house by becoming current with your mortgage payments. In others, you may be able to modify the loan so that you can continue to make payments and keep your house.
The loan modification process involves changing the terms of your mortgage loan so that you can afford to continue making payments. This is most often achieved by significantly reducing the interest rate.
The United States Bankruptcy Court for New Jersey has instituted a Loss Mitigation Program ("LMP") which functions as a forum for debtors and lenders to discuss mutually acceptable alternatives to foreclosure. Possible resolutions include, but are not limited to, loan modification, loan refinance, forbearance, short sale, or surrender of the property in full satisfaction. The terms of a loss mitigation solution will vary in each case according to the particular needs and goals of the parties. The LMP encourages the parties to finalize a feasible and beneficial agreement with the assistance and supervision of the Bankruptcy Court.
Our office has been successful in obtaining loan modifications during our clients' chapter 13 bankruptcy cases. Our advocacy has resulted in substantial interest rate reductions allowing our clients to reduce their monthly mortgage payments. This has allowed our clients to save their homes where they may not have been able to otherwise.
Since we know what it takes to obtain loan modifications, we are taking that experience and are now assisting our clients in their application for participation in the state court foreclosure mediation process.
Outside of bankruptcy, the New Jersey State Courts have a mortgage foreclosure mediation process through which eligible homeowner's can pursue possible loan modifications and other resolutions. We will assist you in completing the forms.
We will assist you in completing the forms necessary to participate in the mediation program. We mail the documents to the court and await a mediation hearing date. Our representation does not end there. We attend the mediation hearing with you and diligently and aggressively fight to obtain the best results.
Our attorneys have successfully represented numerous home owners in both bankruptcy and State court foreclosure avoidance matters. While no one can guarantee that you will obtain a modification or other workout, we will help you through the complex and often frustrating process of working with your lender to help you get the best result possible.
Click here for information regarding state court foreclosure mediation.
*PLEASE NOTE that foreclosure mediation does not automatically stop a sheriff's sale.
