Bankruptcy
Mortgage Modification In Foreclosure And Chapter 13 Bankruptcy, Two Approaches For Saving Your Home
Many of my foreclosure clients who want to save their home first try to do a “mortgage modification.” Whenever homeowners in New Jersey are served with a foreclosure summons and complaint, the documents typically include an application to apply for Court sponsored foreclosure mediation. That program allows for possibly modifying a mortgage concerning residential property so as to make mortgage payments more affordable. If successful (i.e. it is crucial that the application be made within a certain timeframe), the homeowner can then stop the foreclosure case if he or she is able to successfully obtain a modification. Typically, all mortgage arrearages are restructured, and the homeowner can expect to make a new payment going forward which should be affordable.
On the other hand, if the property owner is rejected by the lender for mortgage modification, he or she can try to stop the foreclosure action or a Sheriff sale by filing a Chapter 13 Bankruptcy. The Chapter 13 would contain a proposed plan to address the mortgage arrearages over a three, or five-year period. The homeowner would make his or her regular mortgage payment each month plus an additional sum of money each month until the arrearages are satisfied. The timeframe for making those monthly payments would either be thirty-six (36) months or more often, sixty (60) months (i.e. so as to keep the Chapter 13 Plan payments lower).
The filing of a Chapter 13 Bankruptcy will stop a Sheriff Sale of your home provided that the filing occurs prior to the date and time of the sale. It is wise to consult with an experienced attorney who handles foreclosures and Bankruptcy matters once you fall behind with your mortgage payments. I have handled Bankruptcy matters for over thirty-one years and have worked on foreclosure matters during that span of time as well. The foreclosure mediation approach is relatively new and has been frequently used by my clients since the financial crisis of 2008.
I know that there is a lot of financial instability in society. Many of my clients are divorced or have temporarily lost employment. People sometimes have health setbacks. Whatever the situation, I try to develop a happy outcome for the clients. Mortgage modification or Chapter 13 Bankruptcy may be your solution.
If you are having problems with your mortgage or need Bankruptcy assistance, you are welcome to schedule an appointment at my office located on 177 Main Street, in Matawan. The office is close to Aberdeen, Holmdel, Keyport in Monmouth County, as well as Old Bridge and Sayreville in Middlesex County. My office is easily accessible from Route 34 and Route 35 depending on where you live or work.