If you are facing foreclosure in New Jersey, you need to know what your options are. Where can you turn for assistance?
It's good to have a private attorney on your side. A lawyer experienced with foreclosure and debt relief issues can play a key role in helping your get your arms around what you need to do to keep your house.
In New Jersey, there is also the state's Mortgage Foreclosure Mediation Program. This program educates homeowners and broadens the options available to them.
Foreclosures Continue
In January of this year, RealtyTrac, an online foreclosure resource, reported that New Jersey foreclosures were occurring more than the national average. While foreclosure listings increased 1 percent from December to January nationally, they were up 13 percent in New Jersey. Although total foreclosures for both U.S and New Jersey were down from January of 2010, analysts say this shows a "false positive" due to a backlog of foreclosure paperwork now in process and unethical mortgage practices.
New Jersey Program Created
At the end of 2009, New Jersey Governor Corzine signed a law to implement the New Jersey Mortgage Foreclosure Mediation Program. The goal of the program is to resolve foreclosure complaints through mediation and to keep people in their homes. This is a collaborative effort between the courts, the attorney general's office, the Housing Mortgage Finance Agency, the Public Advocate, the Department of Banking and Insurance, and Legal Services of New Jersey, all of whom contribute funds and staff.
Mediation Program
In the program, distressed borrowers are first referred to certified HUD and New Jersey housing counselors and volunteer lawyers. The goal is to find a solution for working with lenders to pursue various mortgage options like waiving penalties and loan modifications in lieu of foreclosure. If the lenders and homeowners cannot reach an agreement to resolve the delinquent mortgage, they must work with court-appointed mediators to try to reach out-of-court agreements about how to proceed with trying to rehabilitate the default mortgage.
Options for Help
There are numerous limitations on the program. It applies only to homeowners in New Jersey who have not yet filed for bankruptcy, whose primary residence is in default or foreclosure and whose property is a one to three-family residence are eligible for participation in the free mediation program.
The program has helped some people keep their homes, but not every borrower qualifies for it. Even those who do may prefer to work with a private attorney to file bankruptcy to stop their foreclosures.
If you are a homeowner in New Jersey who is currently in default or foreclosure, contact a New Jersey bankruptcy attorney today to discuss your legal rights and options for saving your home. Whether or not you have already participated in the New Jersey Mortgage Foreclosure Mediation Program, there are other ways to prevent a foreclosure from proceeding, including filing for certain types of bankruptcy.
