Oliver & Legg
Call today for a free consultation
Local 732-988-1500


How to slow or avoid foreclosure

Purchasing a home in New Jersey is an exciting experience. Unfortunately, medical debt, loss of employment and other changes to a person’s financial status can lead to foreclosure. Many people facing a foreclosure may believe their banks are eager to evict them from their homes and seize the property. However, banks often stand to lose more from taking this route than trying to work something out with the homeowner. Because of this, if creditors are calling, it may be beneficial to take the call.

According to USA.gov, the first step when avoiding foreclosure is to communicate with the lender. In fact, it is better not to wait until they start calling. Be proactive if there is any reason to believe there may be some difficulty with making upcoming payments. This provides the opportunity for creditors to adjust payment terms, even temporarily. Some options on the table may include refinancing, forbearance, loan modification or a repayment plan.

The next step is to take advantage of services provided by the Making Home Affordable program. MHA offers free assistance to help homeowners to keep their home or safely give it up. There may also be a housing agency at the state level that may be able to help. For homes financed by an FHA loan, contacting the FHA National Servicing Center may also be helpful.

Additionally, Forbes recommends that homeowners educate themselves on the foreclosure process, especially in instances where losing their home may be inevitable. This may happen in instances where the homeowner is so buried in debt that they are certain they will not be able to make payments or come to a favorable settlement with the bank.

For homeowners who are concerned about protecting their credit history, a short sale may be beneficial. This would require permission from the lender as the bank may need to accept much less for the home than it is actually worth. The lender would also be in charge of deciding what offer to accept. While this ultimately means a person may lose their home, they may at least manage to escape the repercussions of foreclosure with no dings to their credit score so they may try again when they recover from their financial hardships.

No Comments

Leave a comment
Comment Information

Get A Free Lawyer Consultation

With offices in Toms River and Neptune, attorney William H. Oliver is ready to answer your questions and help you find the right debt relief solution. Evening and Saturday appointments are available. Call local: 732-988-1500 or fill out our contact form.

Email Us For a Response

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Toms River Office
609 Main Street
Toms River, NJ 08753

Fax: 732-775-7404
Toms River Law Office Map

Neptune Office
2240 State Route 33
Suite 112
Neptune, NJ 07753

Phone: 732-341-1550
Fax: 732-775-7404
Neptune Law Office Map

visa, master card, american express, discover network