Debt Relief Options For Those Facing Foreclosure

Irresponsible lending was the primary cause of the 2008 financial crisis, and many homeowners in Morristown and other parts of New Jersey are still finding it difficult to keep up with the payments on mortgages taken out during the real estate boom that preceded the crash. Receiving a foreclosure letter can be a harrowing experience, but the nation's bankruptcy laws and a number of programs put into place during the Great Recession can help property owners remain in their homes.

How Chapter 13 Bankruptcies Can Prevent Foreclosure

The automatic stay issued when a Chapter 13 bankruptcy is filed puts an immediate halt to foreclosure proceedings and allows homeowners to bring their mortgages up-to-date over a period of between three and five years.

However, lenders can petition the court to lift the stay and allow the foreclosure to proceed. Courts may grant these petitions if homeowners delayed filing for bankruptcy after being notified that their homes were to be sold. That is why it is vital to act quickly the moment you learn about the foreclosure.

Loan Modifications And Mediation

At Ast & Schmidt, P.C., our attorneys have more than 60 years of combined debt relief experience. We are familiar with the various programs available to homeowners with financial difficulties. We will work closely with you to evaluate the options you have to stay in your home. Many lenders have in-house programs that can help people secure mortgage modifications that can be a great help.

Our lawyers may also suggest mediation to avoid foreclosure when traditional negotiation fails to produce an amicable agreement.

Foreclosure Litigation

When banks are unwilling to be flexible and modify mortgages, our attorneys can challenge them in court. The laws governing property foreclosures are strict, and copious amounts of documentation are required. Lenders often begin the process before they have all of the paperwork they need. Pressing banks by pointing out these deficiencies could prompt them to return to the negotiating table to discuss a loan modification or a short sale.

The Importance Of Taking Timely Action

It can take several months to complete a foreclosure, but it is still important to take action promptly. Automatic stays may be challenged and lifted when borrowers procrastinate, and banks could be more willing to negotiate a loan modification when they are approached during the early stages of the process.

If you would like to learn more about avoiding foreclosure or getting your financial life back on track, please call us at 973-984-1300 to schedule a free initial consultation or get in touch with us by using our online form.

Ast & Schmidt, P.C., is a debt relief agency. We help individuals file for bankruptcy relief under the Bankruptcy Code. The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.