Mortgage Debt and Bankruptcy in Burlington County, NJ
Saving your Home
Upon filing for bankruptcy, one of the biggest concerns most families have is whether they will lose their home. Mortgage loans are a form of secured debt, which means your home is collateral for the amount you owe on the mortgage. The good news is that although mortgage debt is complicated, you have several options to restructure your payments and even stop an impending foreclosure.
If you have started missing mortgage payments or have received a foreclosure notice, it is imperative that you get in touch with a New Jersey bankruptcy lawyer. The bankruptcy attorneys at McDowell Posternock Apell & Detrick, PC will thoroughly explain your mortgage debt options and offer their professional opinion about which options are best for you.
There are several options available to you to preserve your homeownership when faced with financial hardship, and potentially bankruptcy. These options include:
- Loan modifications– A loan modification is an agreement with the mortgage creditor in which the terms of the loan are altered. Re-negotiating mortgage terms will make your monthly payments more manageable, but mortgage companies are not required to accept modifications, so your modification requests may be rejected. Working with a knowledgeable bankruptcy attorney increases your odds of having your loan modification request be approved.
- Chapter 13 bankruptcy– You will be provided with foreclosure defense by a well-versed bankruptcy attorney and have the opportunity to restructure your mortgage in a way that will easily get you caught up. If the value of your home is less than the balance of your mortgage, it may also be possible to remove any liens or second mortgages in place.
You may decide that keeping your home isn’t ultimately in your family’s best interest. In this case, there are different options at your disposal, including:
- Chapter 7 bankruptcy – If you want to keep your home when filing for Chapter 7 bankruptcy, you must maintain your mortgage payments.
- Short sales– If you are facing foreclosure, it may be possible for you to sell your property for less than the balance of your mortgage with your lender’s approval.
All of these options have intricacies and their own sets of benefits and drawbacks. The experienced bankruptcy attorneys at McDowell Posternock Apell & Detrick, PC are here to assess your specific financial situation and advise you on the best option to maintain your home and make a quick financial recovery.
Why should I consult a bankruptcy lawyer about my mortgage debt?
- Obtain a professional opinion on the best course of action.
- Explore loan modification while under the protection of the bankruptcy court.
- Delay and potentially prevent home foreclosure.
- Get professional guidance for rebuilding your credit and sustaining a healthy financial future.
Seek bankruptcy advice with a free phone consultation
Your home is your most important asset and deserves the best protection possible. If you have missed just one payment on your mortgage, it may be time to consider seeking the help of an experienced bankruptcy lawyer. Call the South Jersey bankruptcy attorneys at McDowell Posternock Apell & Detrick, PC today or fill out the contact form to learn the best way to handle your mortgage debt.