Bankruptcy and the New Jersey Loss Mitigation Program
Trying to find answers to questions about your mortgage payments can feel like an endless obstacle course. With so many decisions to make, it can feel overwhelming to take steps towards resolving your mortgage situation. If you are considering filing bankruptcy and want to know how to handle your house payment, then you should know that help is available. An experienced foreclosure lawyer can explain how bankruptcy and the New Jersey loss mitigation program can save your home from foreclosure.
What is the Loss Mitigation Program in New Jersey?
The loss mitigation program is a tool available through the bankruptcy court in New Jersey that is designed to help you work with your lender to see if an agreed upon plan can be developed for you to avoid a foreclosure of your home.
There are many options that are available when using this program, such as a modification to your loan or refinancing your loan. This provides an opportunity to work with your lender while having the benefits of supervision through the bankruptcy court.
The Benefits of Using the Loss Mitigation Program in New Jersey
One advantage to filing bankruptcy and using the New Jersey loss mitigation program is speed. It is typically faster to find out whether or not you are approved for modification of your loan through the loss mitigation program than if you try to obtain a modification on your own. This is because the loss mitigation program expedites the process of modifying your loan.
Another advantage is the ability to track documents. As part of the process to modify your loan, certain documents are required by your lender to review.
There is an internet portal through the loss mitigation program where documents can be submitted to determine your eligibility for loan modification options. This way of tracking documents should prevent lost time due to losing or misplacing paperwork submitted to a lender.
What if I am Not Eligible for the Loss Mitigation Program?
While the Loss Mitigation Program can be a great option, there is no guarantee that a lender has to agree to any loan modification options. A bankruptcy court cannot force a lender to agree to modify your loan. Your lender uses the same standards to determine eligibility to modify loans that it uses before entry into the loss mitigation program.
However, even if you are not eligible for a loan modification, there may be other options available to you through bankruptcy. One such option is by filing a chapter 13 bankruptcy.
A chapter 13 bankruptcy is a bankruptcy where a repayment plan is put in place usually to pay some or all of your debt. If you are behind on your mortgage payment, you may be able to make up those payments on a payment plan through bankruptcy and save your home from foreclosure.
Learning More About the New Jersey Loss Mitigation Program
It is important to know that you have choices that can be made to save your home and make it easier to sustain your mortgage payments. If you are struggling to pay your mortgage, it may be a great idea to see how programs can work to benefit you and your situation. The New Jersey loss mitigation program and bankruptcy can be your best decision to effectively resolve your debt and keep your home.
That is why it is so important that you contact a New Jersey attorney with experience in bankruptcy and the New Jersey loss mitigation program to review your situation and determine if the loss mitigation program is the right choice for you.