Many families are facing THE LOSS OF THEIR HOME to foreclosure in these difficult financial times. People may fall behind on their mortgage payments for any one of a number of reasons – loss of job, cut in hours or overtime, medical issues, and temporary disability are common situations. By the time people call us they may be from 2 to 24 months behind on their mortgages or they may be current but they realize that they need help to survive and stay in the home. Often times homeowners have made reasonable proposals to their mortgage lenders to cure the arrears on the mortgage over a number of months. Many times these very reasonable proposals are rejected out of hand by the lender.
There are several approaches which we employ to assist such persons who are trying to save their homes.
A Chapter 13 Bankruptcy allows an individual to propose a Plan to the Bankruptcy Court to resume regular monthly mortgage payments and to cure the arrears through payments to the Chapter 13 Trustee in a 36 to 60 month plan. In order for the Chapter 13 Plan to be confirmed the homeowner must demonstrate to the Chapter 13 Trustee and the Court that they have sufficient cash flow in the house to carry all of the regular household expenses and demonstrate that there is enough surplus to fund the arrears cure through the plan.
As part of the Federal Governments rescue of the financial industry, many of the major mortgage lenders who received assistance from the Federal Government agreed to consider requests from Homeowners to Modify their mortgages. The most well known of these programs is the Home Affordable Modification Program (HAMP) which requires participating lenders to try to reduce the homeowners mortgage payment to 31% of the gross income in the household. Homeowners can be considered for a HAMP modification both before and after a foreclosure is started and both before and after a Bankruptcy may be filed. Many of the mortgage lenders also offer their own Modification programs through their loss mitigation departments.
The State of New Jersey has created a Mediation Program for homeowners who are in a foreclosure case. Under this program the lender is forced to send a representative to a mediation session at the Court house to discuss possible a possible modification of the mortgage with the homeowner. The mediator is certified by the Court and experienced in these matters and tries to bring the Mortgage company and the homeowner to a mutually agreeable resolution, including the possibility of a modification of the mortgage.
The various programs described above are not mutually exclusive and, in some circumstances may be used together to fashion a solution for the homeowner.
The attorneys at Stephen M. Goldberg, PC, are experienced in all facets of the programs described above. Stephen Goldberg, Esq., is a certified foreclosure mediator and has participated in numerous Court ordered meditations. Both Ms. Wright and Mr. Goldberg have extensive experience in using Chapter 13 Bankruptcies to save clients homes. Both attorneys have also worked on numerous Modification applications.
If you are facing the loss of your home through foreclosure, call for an appointment to have one of our attorneys review your situation and explore any potential solutions which might be available. Do not assume your situation is hopeless. Call for an appointment with one of our attorneys.
732-968-2000 or 732-752-8834