NJ Foreclosure: Can You Afford to Save Your Home?

 

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If you find yourself facing a looming foreclosure date but still desperately wish that you could save your home, you may feel that all hope is lost. In all honesty, moving ahead with the foreclosure may be your best option. However, if you have yet to seek a professional opinion about your particular foreclosure case, there is a chance that with the right foreclosure defense team, you could actually remain in your home by stalling or even stopping the foreclosure altogether.

Naturally, the most important question you need to ask yourself is, “Can I actually afford to stay in my home?” It is important that you take a cold, hard look at your overall financial situation and give yourself an honest answer to that question. Set up a monthly budget chart with all of your incoming and outgoing money to get a clear look at how much money you make and spend each month.

A good rule of thumb as stated by the HAMP (Home Affordable Modification Program) is that your mortgage payment should be no more than 31% of your monthly income. By creating a monthly budget chart, you will be able to clearly see the percentage of your monthly income that is going toward your mortgage payment.

When you create your monthly budget, if you discover that your mortgage payment makes up less than 31% of your monthly income, but you’re still struggling to make the payments, you’ll have to take a look at other areas of your budget to see where you can make some changes. If keeping your home is your priority, you will have to do away with some line items on your budget that you may want, but simply cannot afford while paying for your home at the same time.

If your figures show you that your mortgage payment is more than 31% of what you make each month, keeping your home is going to be difficult. That is, it will be difficult unless you enlist help from an experienced foreclosure defense firm.

You must act quickly if your home is already in an active foreclosure proceeding. By working with a foreclosure defense lawyer, you will have his experience on your side, and you will have several strategic options that may allow you to keep your home.

Your NJ foreclosure defense attorney can request a forbearance (or modification) of your mortgage. Forbearance means that you will be given a short period of time where you will not have to pay your scheduled mortgage payments. The idea behind this is that it gives homeowners time to “catch up” and get finances in order. Your attorney may also be able to negotiate you a lower payment each month that fits into your budget and falls below 31% of your monthly income.

Another option that your foreclosure attorney may present to you is filing for bankruptcy. A chapter 13 bankruptcy will allow you to repay the debts you owe your mortgage lender with affordable payments over a set period of years, allowing you to gradually get back on track with your mortgage.

Remember: if your ultimate goal is to save your home, it is essential that you act quickly in order to have your attorney negotiate with your lender before the date of your foreclosure sale. Failure to act before that date means that you may very well be evicted in the near future. Call our office today.

Image credit: William Brawley

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5 Responses to NJ Foreclosure: Can You Afford to Save Your Home?

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