Since the 2008 housing crisis, we’ve seen a dramatic increase in home foreclosures in New Jersey as well as the rest of the country. Homeowners who are underwater on their mortgages are feeling increasingly compelled to file for bankruptcy in an effort to salvage their finances. They insist that it has to be one extreme or the other without ever investigating any other alternatives. While bankruptcy can help propel you to a fresh financial start, it can also have a lasting impact on your credit and your ability to borrow money. It might not be necessary for you to file. Even if you’re considerably behind on your mortgage payments, you may be able to find a middle ground.
New Jersey has developed a Foreclosure Mediation Program to help homeowners that are behind on their mortgages stay in their homes and avoid financial collapse. The objective of the mediation is to arrive at a resolution that allows the homeowner to keep the property; however, if circumstances don’t allow for the debtor keep their property, the parties will try to figure out a way for the homeowner to give up the home without having to go through the foreclosure process. Before deciding if mediation is right for you, speak to an experienced attorney that can help you initiate and prepare for the process.
Eligibility Requirements, Process and Potential Outcomes
Foreclosure mediations usually include the homeowner, a representative from the lending company, a certified mediator and legal representatives for each party. Homeowners are eligible for participation as long as they are the owner of a one to three-family home and that the property in question is their primary residence. Mediations typically end in one of a few select ways, which include:
- Loan modification
- Payment arrangement
- Forbearance agreement
- Short sale
- Deed forfeiture
Representatives from the lending company are required to have their attorneys with them, which means you will need experienced and qualified legal representation as well. To find out more about New Jersey’s Foreclosure Mediation Program, talk to an attorney today.
Joel R. Spivack has been helping New Jersey residents avoid foreclosure for years. If you’re facing the prospect of losing your home, call Mr. Spivack and his associates today for a free consultation.