Aging in Place: Avoiding NJ Foreclosure in Retirement

NJ foreclosure

Entering retirement can be a time of celebration and relaxation, but it can also lead to financial stress. You’ve spent your whole life working towards this moment, but managing your finances on a fixed income can be hard to get used to. While ideally you would be living debt-free in retirement, many homeowners are taking their mortgages and other debts with them into their senior years. If you are worried about how to continue to pay for your home after retirement, there are some steps you can take to avoid facing a NJ foreclosure.

No matter how much you plan for retirement, one unexpected event can throw everything off balance. Unforeseen expenses are some of the biggest reasons retirees struggle to make their mortgage payments. Medical bills can quickly amount to a small fortune. Divorce can leave one person struggling to make mortgage payments alone. Loss of income can affect homeowners even after retirement, due to loss of a part-time job or loss of invested funds. If you find yourself facing even one of these hardships, it may be difficult or impossible to make a mortgage payment.

If you believe a lower monthly payment would allow you to stay in your home, you should consider a loan modification. With a loan modification, your interest rate can be lowered, the loan term can be extended, and/or the principal can be reduced to make monthly payments more affordable. In order to be eligible for a loan modification, you need to prove to your lender that you can’t afford your current mortgage payment, but could if the payment was lowered.

When applying for a loan modification, it is really helpful to have an experienced attorney advocating for your interests. When applying alone, homeowners inexperienced with the process can make mistakes or neglect to provide sufficient evidence of their income. Lenders will reject applications if they believe the requester doesn’t have enough income to meet the lower payments. However, it may just be that you have not listed all of your income, or have have failed to describe your income appropriately. Any money you are receiving has the potential to help your chances of getting approved for a loan modification. At Veitengruber Law, we know what lenders are looking for and how to create an application will be approved.

While you are working to avoid foreclosure, it might be worth looking into increasing your income. If you have the space, renting a room to a relative or friend or renting out an unused space for storage can help supplement your retirement plan. Many retirees hold part-time jobs like dog walking, babysitting, elderly care, and freelancing. Even if you only take a job long enough to get your loan modification approved and pay off some debts, you can resume a carefree retirement once the threat of foreclosure is no longer looming.

The State of New Jersey has made efforts to give retirees a better chance of maintaining their standard of living while continuing to live in the garden state. Law makers have stepped in to help struggling seniors with the Property Tax Reimbursement Plan, also known as the “Senior Freeze.” For seniors who meet a list of requirements, this program freezes property taxes at the amount paid at the time of retirement. Under this program, any increases in NJ property taxes paid since retirement will be reimbursed. This program helps struggling seniors achieve a more consistent, lower cost of living.

Your retirement years should be stress-free and happy. Veitengruber Law is experienced in offering expert legal and financial advice to carry you through retirement with financial security. Enjoy your golden years the way you should—in the comfort of your own home.

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