One of the biggest accomplishments for many people in New Jersey is to become a homeowner. It often takes years of saving and hard work to own a home. Of course, when a financial situation changes and an individual can no longer afford to make mortgage payments, foreclosure may be in one’s future. The concept of losing a home that one worked so hard for can be completely devastating to a homeowner.
However, there are a few ways that a homeowner may be able to save their house from going into foreclosure. First, the individual may want to try and have their loan modified. In the best cases, a loan modification can allow an individual to lengthen their mortgage term, lessen monthly payments, and even lessen interest rates to make it more affordable. However, a loan modification must be approved by the lender. If the lender does not approve this plan, the homeowner may want to consider filing for bankruptcy.
Bankruptcy can save a home from foreclosure because of the automatic stay. The automatic stay simply means that as soon as an individual files for bankruptcy in New Jersey, no more collections efforts can be made. This includes any foreclosure efforts.
If you have questions about foreclosure and bankruptcy in New Jersey, contact our firm today.
If you are in need of experienced legal counsel for matters of personal injury, medical malpractice, medical device injuries, unsafe drug injuries, consumer protection, bankruptcy, SSD, or criminal law in New Jersey, please contact Tomes & Hanratty, P.C. and we will be happy to assist you.