FORECLOSURE
201-646-3333 BERGEN COUNTY BANKRUPTCY LAWYER
Today many New Jersey homeowners living in Bergen, Hudson or Passaic County are faced with the crisis of losing their homes. More people are asking how foreclosure will affect their credit. The answer to that question is: it will affect your credit very negatively along with a host of other financial ramifications. If the foreclosure process begins on your home you will not be able to apply for any type of loan for two full years. This includes any kind of financing no matter how small.
Many people in northern New Jersey mistakenly believe that all mortgage debt is extinguished once a lender forecloses on the property. In fact, given the depressed real estate market, most lenders must often sell the foreclosed property for less than the mortgage amount or less than market value. This leaves the lender with one remedy: file suit against the debtor for the "deficiency". The deficiency is the amount the debtor still owes the bank because the sale of the house did not cover the mortgage on the house. This debt remains and does not go away as many people mistakenly believe. Fortunately, those New Jersey debtors who have walked away from a property on purpose or who have been foreclosed because they were unable to modify their mortgage may file bankruptcy to discharge the debt the bank will continue to pursue. In most of these cases the best option is to file a Chapter 7 Bankruptcy since there is no longer any equity about which to be concerned.
Many people in northern New Jersey mistakenly believe that all mortgage debt is extinguished once a lender forecloses on the property. In fact, given the depressed real estate market, most lenders must often sell the foreclosed property for less than the mortgage amount or less than market value. This leaves the lender with one remedy: file suit against the debtor for the "deficiency". The deficiency is the amount the debtor still owes the bank because the sale of the house did not cover the mortgage on the house. This debt remains and does not go away as many people mistakenly believe. Fortunately, those New Jersey debtors who have walked away from a property on purpose or who have been foreclosed because they were unable to modify their mortgage may file bankruptcy to discharge the debt the bank will continue to pursue. In most of these cases the best option is to file a Chapter 7 Bankruptcy since there is no longer any equity about which to be concerned.
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