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Newark, New Jersey Foreclosure Questions and Answers

Learn About the Foreclosure Process

Found in this article:

What Is Foreclosure?

How Can a Bankruptcy Lawyer Help With a Foreclosure?

Can You Delay a Foreclosure?

What Is Foreclosure?

Foreclosure is the legal action taken by a home lender to repossess your property and sell it at auction. The proceeds from the auction are used to repay the bank, including payment of any interest and late fees. If you miss multiple payments on your home or property mortgage, you may be facing foreclosure.

A lender will notify you in advance of any foreclosure action and attempt to make arrangements for catching up on payments. When you aren't able to make up too many payments, the bank will begin the steps to foreclose on your home.

In most cases, home- or property owners don't understand the foreclosure process. When you can't understand how the process works, navigating the legal system to save your home is easy to mess up.

The moment you learn that you're facing a foreclosure, you need to call an attorney to help you take the right actions. Otherwise, navigating the legal system on your own can become overwhelming very fast.

The Law Offices of Michelle Labeyen, PC can provide you with expert assistance in handling your foreclosure. Knowing that an experienced, knowledgeable foreclosure attorney like Michelle is handling your case will help reduce the stress of the situation.

With more than 17 years of legal experience, Michelle can help in several ways.This can include:

  • Delaying the foreclosure process
  • Negotiating your mortgage and payment schedule with the bank
  • Reorganizing your mortgage
  • Exploring the option of a short sale of your property
  • Negotiating ways to avoid the foreclosure auction
  • Proving you with the information to lower your mortgage payments and help you keep your home

How Can a Bankruptcy Lawyer Help With a Foreclosure?

Facing a foreclosure is incredibly stressful. Losing your home or your business property impacts every aspect of your life. It causes stress, forces lifestyle changes, and increases your financial burden.

Foreclosure is a formal court process. The bank is required to file a motion for foreclosure in court. As the owner of the property, you have the right to respond and defend your foreclosure.

There are several ways to defend a foreclosure action. The best solution for your situation will depend on the details of your case. It also depends heavily on the willingness of your bank to negotiate, and your lawyer's strategy for fighting foreclosure.

Michelle Labayen offers a free consultation to learn about your case. She will collect the information she needs before advising on a foreclosure defense.

Our staff understands your goals and desired outcome from a foreclosure case. Michelle will assess the most likely outcome of your case in court and provide you with the best possible foreclosure defense.

In many cases, Michelle and her staff will fight your case with some of the following defenses:

  • The bank used an invalid affidavit process
  • The terms of the mortgage were illegal or unconscionable
  • There was a mistake or error in sending payments or posting mortgage payments
  • The bank failed to follow New York State guidelines on the foreclosure process
  • There was a violation of the consumer protection laws

Can You Delay a Foreclosure?

Sometimes defense to foreclosure in Newark doesn't rely on a procedural or factual argument. Instead, it seeks to delay or prevent the foreclosure through negotiation or reorganization. Michelle has the experience to handle any number of possible outcomes.

  • Loan modification
  • Debt reorganization
  • Preventing or delaying eviction
  • Chapter 13 bankruptcy and other bankruptcy proceedings
  • Short sales and avoiding foreclosure auctions

These options can help delay your foreclosure. Having the legal support will provide your family relief and reduce the stress of potentially losing your home.

As we discuss these alternatives to foreclosure, our office stays focused on the core values of our firm: exceptional communication, knowledgeable legal advice, and a personal approach to our representation. It is through these values that we can obtain a better result for our Newark, New Jersey foreclosure clients.

Foreclosure and Mortgage Loan Modifications

According to the Federal Deposit Insurance Corporation (FDIC), foreclosure rates over the past 60 years have been increasing. Before the onset of the COVID-19 pandemic, estimates by the FDIC stated:

  • Every three months, 250,000 new families were entering into foreclosure
  • One child in every classroom in America was at risk of losing their home because their parents were unable to pay their mortgage.
  • More than 6 in 10 homeowners who were delinquent in their mortgage payments were not aware of services that mortgage lenders offer to individuals having trouble with their mortgage.

With many of the COVID-19 relief laws beginning to expire, a new rush of foreclosures is on the horizon. If you're facing the reality of a foreclosure in the Newark, NJ area, The Law Offices of Michelle Labayen, PC are available to help your case.

As an experienced and knowledgeable bankruptcy attorney, Michelle has handled countless foreclosures, as well as loan modifications.

It's not too late to save your home!

Can I File for Bankruptcy to Stop Foreclosure on My Home?

When you're behind on your mortgage payments and the bank is threatening foreclosure, life is very stressful. Unfortunately, since 2008, millions of homeowners have faced this same crisis.

Debt relief through bankruptcy is often the best, option. Chapter 13 Bankruptcy gives you the option to make payments on your mortgage under the protection of Federal Bankruptcy Court.

How do People End up In Foreclosure?

Data from 60,000 homeowners was analyzed by the Homeownership Preservation Foundation. The study found some alarming facts. The following is a list of reasons people got behind on their mortgages.

Half of the population of these homeowners are already behind on a second payment. By law, one missed payment can be considered default. Typically, banks will wait three to six months before starting foreclosure actions.

What Should I Do if My Home is Facing Foreclosure?

Most homeowners aren't aware of the options that are available by their lenders. Before taking any other actions, you should contact your bank and request information about your options.

In the event that the options made available by the bank aren't financially manageable, Chapter 13 Bankruptcy is the next option. That's where the Law Office of Michelle Labayen, LLC is ready to help.

If you're facing foreclosure actions on your home, Michelle can help. She has more than 16 years of experience working with homeowners to guide them to their best course of action.

To learn more, contact Michelle, today. You can call her at (973) 622-1584, or go to her contact page to send her a message.