hear the word “foreclosure” and immediately see images of an evil, mustachioed
landowner in a black cape and hat throwing impoverished tenants out of the homes
he rents them and into the snow. The reality, while not pleasant, is hardly that
grim or melodramatic. But the fear people have – especially those falling ever
more deeply in debt and ever more behind in their mortgage payments – is certainly
understandable: Without proper legal help, they could lose their homes.
Fortunately for anyone living in Northern and Central New Jersey, the best kind of legal
help with foreclosures is that provided by Mitchell Law Offices.
Bankruptcy Attorney Douglas Mitchell has been helping people
in this neck of the woods deal with foreclosures for some time now. And the
first thing he does is explain to his clients just what a foreclosure is
– and how it can actually help them out of a dire financial situation.
essence, a foreclosure is the legal process by which a lender can sell a
borrower’s home and use the proceeds to repay the loan when the borrower is
unable to do so.
find themselves facing foreclosure for various reasons, but typically this
process comes on the heels of a major change in the borrower’s financial
circumstances. The borrower may, for instance, have lost his or her job,
suffered a debilitating injury or disease, gone through an expensive divorce,
or simply gotten careless and amassed an overwhelming amount of credit card
the reason, foreclosures are often initiated when the borrower stops making
payments on time. After a period of late payments, the loan is declared
delinquent and the borrower is said to have gone into default. The lender will
contact the borrower to determine whether the borrower will be able to pay off the
balance of the loan or not. This is the borrower’s opportunity to request a
repayment plan or a forbearance agreement if his or her financial difficulties
are only temporary.
the borrower’s financial difficulties are more long-term and he or she can
neither fulfill a repayment plan nor meet the terms of a forbearance agreement,
the lender will typically file a notice of foreclosure. Such filing formally
begins the legal process. This process usually takes several months to
complete. If the borrower wants to challenge the foreclosure, he or she may do
so by filing a response in court. Attorney Douglas Mitchell can help with this.
Foreclosures Relieve You of Debt?
address unpaid mortgage loans only. If you have other debts as well that
made it difficult for you to pay your mortgage, a foreclosure may relieve just
a portion of your financial burdens. Obviously, it’s best to come up with a
comprehensive plan that deals with all of your debt, and this is where Attorney
Douglas Mitchell can be of exceptional help. He can not only explain your
options but see to it that the best option is put to work on your behalf.
Agreements as an Alternative to Foreclosure
means to have patience or show restraint. And that’s basically what a
forbearance agreement entails in the context of a home mortgage, given that it delays
lender agrees to reduce or suspend mortgage payments for a specified period of
time and not to initiate a foreclosure during that time. To get this temporary
relief, your lender will generally request that you return to making full
payments at the end of the forbearance period. Your lender may require you to cover missed payments as well by paying
additional amounts once the forbearance period is over. The terms of a
forbearance agreement vary widely, and Attorney Douglas Mitchell can assist you
in obtaining a forbearance agreement that best suits your financial situation.
finances do not improve as planned, you may seek a modification or extension of
the forbearance agreement. In this, too,
Douglas Mitchell has the skill and experience to renegotiate an agreement with
your lender that extends or modifies your forbearance.
Plans: Another Possible Alternative to Foreclosure
plans, unlike forbearance agreements, set up an immediate schedule of payments
over time to make up for any mortgage payments you missed.
behind on your mortgage payments due to a temporary financial hardship, a
repayment plan provides a way to catch up once your finances are back in order.
how a repayment plan generally works:
- Your lender spreads your overdue amount over a fixed number of
weeks or months, the specific time period of which can be negotiated.
- The overdue amount is often added to each of your regular
- Once the missed payments are brought current, your regular
mortgage payments resume and you begin paying your normal monthly payment
help in handling foreclosure or determining what options you might have to it, do
what so many in Northern and Central New Jersey have done before you: contact Mitchell Law Offices.