According to an NBCChicago.com report, banks and lending institutions throughout the country are resorting to new methods of collecting mortgage payments that are past due, namely cutting their losses and handing over mortgage accounts to third parties. The lenders are now selling or transferring delinquent loans to debt collection agencies for amounts that are considerably less than the payoff. After the transfer, the lenders are wiping their hands clean of the whole thing.
While this approach may cut banks loose from customers who are unable to pay, it does not let those customers off the hook. Reportedly, these collection agencies, which are not governed by the same regulations as the lenders, are resorting to aggressive tactics as a means of collecting debts in full. Essentially, this trend represents banks and other financial institutions giving up on their customers, no longer wanting to work with them, and simply settling for minimal payment from debt collection agencies.
Despite many financial institutions declaring that they want to work with their customers to resolve mortgage arrears and reinstate their mortgages, there are a number of financial institutions that are resorting to tactics that result in defeating the homeowners ability to modify their loan or successfully resolve mortgage foreclosures. In some cases, filing for bankruptcy protection may end up being the best option for an individual or family, but all options should be carefully considered nevertheless.
To find out more about the process of filing bankruptcy, resolving tax liens, and resolving mortgage arrears or foreclosures under New Jersey state law, please contact experienced New Jersey mortgage foreclosure attorney Robert Manchel. Mr. Manchel will examine your specific situation, and will help you make the best decision possible for your financial future. For more information about how bankruptcy may be a beneficial option, please call the Law Offices of Robert Manchel today at 866-503-5655.