BANKRUPTCY- STOP FORECLOSURE-LOAN MODIFICATION-DEBT SETTLEMENT
90 Washington St.
Long Branch NJ 07740
If you are behind on your mortgage payments or in foreclosure you may also be facing a number of other financial problems, such as being behind on credit cards, medical bills or car payments. Each person’s situation is different. There are various solutions which can be used – alone or in combination – to address your financial problems. There is no “one size fits all” solution. It is important to develop a strategy that deals with all of your financial problems systematically. .
If you are behind on your mortgage payments, paying the mortgage company the entire amount you are behind including all late fees and other charges can reinstate your mortgage. If you are in foreclosure, there may be time limits on reinstating your mortgage. For a reinstatement to work you must have a lump sum of money available to catch up on your mortgage.
In a loan modification, your mortgage company modifies your mortgage, which may include placing your arrearages on the end of your mortgage and/or lowering your interest rate or payment. Usually, homeowners enter into an agreement, which changes the terms of their existing mortgage, changes the monthly payment and deals with the mortgage arrearages. A loan modification may be done directly with the lender or in conjunction with a federal program. Click on the Loan Modification menu above for more information.
Entering into a forbearance agreement with your mortgage company may be a good tool to use to get you backs on track. Forbearance agreements work best when your arrearages are a result of a short-term interruption in income and you are able to work out the agreement with your mortgage company before a foreclosure is filed.
Refinancing may be an option for you if you have sufficient equity in your home. Unfortunately, many homeowners who are behind on their mortgage payments can’t qualify for a refinance.
Selling your home is an alternative. Obviously if you don’t wish give up your home, it may not be your first choice.
If you no longer want to keep your house, Chapter 7 may be appropriate. In a Chapter 7 bankruptcy you can discharge your credit card and medical bills as well as your personal liability on your mortgage. This means that even if your home is sold for less than you owe, you will not owe any balance to your mortgage company.
In a Chapter 13, a petition is filed which immediately prevents or stops the foreclosure of your home. You then may have up to 5 years to pay back the arrearages on your mortgage. You may be able to get out of other debt such as credit card and medical bills. In a chapter 13 you can address numerous problems at once, such as overdue utilities and property taxes. Your creditors are prevented from suing you while you are in bankruptcy. All lawsuits – including foreclosures – are prevented or stopped. Click on the Chapter 13 menu above for more information.
The array of options available to you can be confusing, and deciding how best to use them can be a daunting task. Making the wrong decision can cost you a great deal of money without getting the result you want. It is vitally important to put together a strategy using the right tools to address your problems. It is important to work with an experienced professional so that you can evaluate and understand how to use these tools in the right combination to obtain the best result for you.
When you meet with me, I will go over your personal financial situation – including your income, expenses, mortgage arrearages, credit card, medical and other debts to develop a strategy hand-tailored to address your financial problems using one or more of the available tools.