New Jersey Foreclosure: Saving Your Home

Photo courtesy of Steve Snodgrass

Previously, we’ve given you the low down on the New Jersey foreclosure timeline, and how some of the recent changes in New Jersey laws have affected the foreclosure process. While we acknowledge that allowing the bank to foreclose on a property may be the best solution for some people, we also realize that there are many homeowners who desperately want to save their home.

The recent changes in New Jersey foreclosure regulations have definitely made the process of saving your home slightly more challenging than it used to be. Due to reduced funding, the previously state-funded foreclosure mediation process has been eliminated, leaving struggling homeowners scratching their heads when it comes to communicating with lenders.

Luckily, the option of hiring a private mediator is still available to anyone who is in danger of losing his or her home to an unwanted foreclosure. As you have probably already concluded, making meaningful contact with your lender is never an easy thing to do, especially if you’re behind on your payments. What you need is someone to make that contact for you; preferably an attorney who specializes in foreclosures and other real property transactions.

An attorney experienced in these areas has spent years building valuable relationships with members of the banking industry and knows the foreclosure process like the back of his hand. When you team up with your attorney, you’ll essentially have hired someone to do all the talking for you; someone who knows who to call, what to say, and exactly when to say it. The importance of filing important paperwork according to the new foreclosure timeline is crucial as well, and the right attorney knows this.

Recently, at the offices of Veitengruber Law, LLC, we had an incredible foreclosure mediation success. One of our clients had been forced into foreclosure against his wishes due to financial problems that were out of his control. He came to us two years behind on his mortgage payments.

Are you in a similar situation?

Here’s what happened next: His bank filed a Foreclosure Complaint. Soon after, his financial situation brightened, and he once again became able to pay his monthly payments. Problem? He was two years behind, which meant there were significant arrears that the bank was asking for, which our client wasn’t able to pay.

We filed a timely Motion asking the bank to capitalize* the arrears. The lender was amenable to the idea, and formulated a trial mortgage modification, with no lump sum arrears payment required.

Does this mean that our client doesn’t have to pay his arrears???

Well, no.

They’ll be squeezed back into the loan figures as capital owed (hence the term ‘capitalize’)* – which removes the negative effect that arrears have on a credit report.

The bottom line for our client in this situation is that he is able to keep his home and his dignity by getting out of foreclosure and back on track with his mortgage payments. Not to mention saving his credit score from bottoming out, which would have opened up a whole new can of worms.

We handle those worms, too, but this time, our client didn’t have to.

Need help getting out of foreclosure? Let us mediate for you. Call today to schedule a consultation. (Like us on Facebook and get a full office consultation FREE of charge!)


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