Passaic, NJ Mortgage Foreclosure Defense Lawyer

When you are faced with the prospect of losing your home because of a few missed mortgage payments, our attorneys can help you deal with the possibility of foreclosure in Passaic.

If your lender was predatory in giving you your mortgage, violated rules surrounding mortgage foreclosure, or otherwise broke federal or state lending laws, you might be able to successfully defend a mortgage foreclosure complaint in Passaic. If you do not have a defense against foreclosure, bankruptcy can provide relief. With bankruptcy comes the automatic stay, a barrier that is put in between you and your lender, preventing them from attempting to collect on debts outside of the bankruptcy process. Stopping foreclosure with bankruptcy can also allow you to protect and rebuild your credit score once you settle your outstanding mortgage debts in Passaic.

Our Passaic, NJ mortgage foreclosure defense lawyers can evaluate your case for free when you call Young, Marr, Mallis & Associates today at (609) 755-3115.

Common Defenses Against Mortgage Foreclosure for Homeowners in Passaic, NJ

There are several viable defenses against foreclosure that can allow homeowners in Passaic to keep their properties despite having fallen behind on payments. For example, suppose our mortgage foreclosure defense lawyers are able to prove that your bank engaged in predatory lending practices when initially giving you your loan. In that case, you might be able to stop mortgage foreclosure.

Predatory Lending

Predatory lending is a common reason why homeowners in Passaic become unable to pay their regular mortgage payments. Banks might intentionally give people mortgages that are inappropriate based on their income and financial ability, causing issues from the get-go. Including hidden fees and caveats in mortgage agreements or pressuring individuals to accept a loan that is unfair might also be considered predatory lending in New Jersey. Proof of predatory lending can be hard to uncover, which is why our attorneys will carefully review your mortgage agreement before proceeding with this defense against foreclosure in Passaic.

Failure to Follow Foreclosure Proceedings

There are specific rules surrounding mortgage foreclosure that lenders must follow in Passaic. For example, banks must send the correct notice of intent to foreclosure letters to homeowners within 180 days of submitting a foreclosure complaint to the court in New Jersey. There are additional procedures lenders must follow throughout the process. Failure to adhere to all mortgage foreclosure rules on behalf of lenders might convince judges to throw out mortgage foreclosure complaints.

Violations of Federal or State Lending Laws

There are federal laws in place, like the Truth in Lending Act and the Real Estate Settlement Procedures Act, as well as state laws that dictate how lenders can give loans to borrowers in Passaic. Any violations of these laws might be considered predatory lending or could be classified as another reason to defend a mortgage foreclosure complaint. Do not assume that banks or other financial institutions consistently follow lending laws down to the letter, as this is not always the case.

How Declaring Bankruptcy in Passaic, NJ Can Allow You to Avoid Mortgage Foreclosure

Unfortunately, homeowners do not always have a defense against mortgage foreclosure and have simply fallen behind on their payments due to their financial circumstances. When this happens, declaring bankruptcy might be the best way for homeowners to prevent foreclosure and the loss of their homes in Passaic.

Bankruptcy is a tool that was created to allow debtors to concentrate on repaying their debts without facing additional financial issues. Bankruptcy eliminates certain hurdles, such as high interest rates and harassing calls from creditors, so that debtors can focus on what is important: settling their secured debts, like mortgage debts. Furthermore, entering into bankruptcy, regardless of the chapter, can also result in a bankruptcy discharge of unsecured debts, such as credit card debt.

In addition to giving you a pathway of mortgage debt repayment, declaring bankruptcy will initiate an automatic stay on certain actions of lenders or creditors, including the bank that gave you your mortgage in Passaic. Any efforts to collect debt outside of bankruptcy proceedings will not be allowed, meaning mortgage foreclosure must be paused. Even if the mortgage foreclosure case has gone all the way to a sheriff’s sale, the sheriff’s sale will not commence once you submit your bankruptcy petition to the court.

Common Consequences of Mortgage Foreclosure Cases in Passaic, NJ

Stopping mortgage foreclosure by any means necessary is the goal of many homeowners dealing with financial difficulties. If you do not stop foreclosure, you might face several consequences in Passaic.

The first and often most severe consequence of mortgage foreclosure is that you are at risk of losing your home. Not only could this be emotional and distressing for you and your family, but it could also leave you without a viable or safe housing situation. Furthermore, mortgage foreclosure might have a profound impact on your credit score, causing it to drop drastically. Mortgage foreclosures typically remain on credit reports for seven years from a homeowner’s first missed payment. The impact on your credit score might make it harder for you to find housing or get another mortgage soon after the foreclosure of your home in Passaic.

Although bankruptcy can also result in a lower credit score for debtors, it can also allow them to keep their properties throughout the process. This can make it so you are not faced with the prospect of purchasing a new home while dealing with financial troubles and instead can focus on rebuilding your credit score after bankruptcy. During your case, our lawyers may to negotiate a restructuring of your initial mortgage agreement that makes it easier for you to stay on track with future payments after your case concludes.

Talk to Our Passaic, NJ Attorneys About Mortgage Foreclosure Today

For help with your case from Young, Marr, Mallis & Associates, call our mortgage foreclosure defense lawyers at (609) 755-3115.