You hear about it on the news and read about it in the papers. Everyday across the country, more and more people are receiving notices of foreclosure in their mailboxes, and more and more people are finding themselves packing up their belongings and surrendering their homes to banks and mortgage companies. According to the New York radio station WNYC, the number of foreclosures was on the rise in July, but is down overall compared to 2009 figures. The online news article points out specifically that the number of foreclosures filed in New Jersey declined nearly 22% in July, while annual figures declined overall by 7%.
Reportedly, the number of homeowners in the U.S. who received some sort of foreclosure filing, either in the form of a default notice, home auction announcement, or bank repossession declaration, rose 4% from the time period of June to July. This translates to a little more than one out of every 400 households across the country. And while these numbers are 10% lower than similar figures recorded the year prior, the number of homes repossessed by banks unfortunately rose to almost record levels.
Homeowners who are in danger of losing their house to foreclosure have options to save their property. Loan modifications are one of the more common options utilized by individuals on the fringe of foreclosure, but this method doesn’t always work out for the best. For others, filing for chapter 13 bankruptcy protection can also save a family home, in addition to offering relief from other financial hardships. Unlike chapter 7 bankruptcy in New Jersey, chapter 13 bankruptcy allows an individual to stop the foreclosure process.
The details and differences surrounding chapter 7 and chapter 13 bankruptcy can be relatively complicated, but generally speaking, individuals who do not qualify for chapter 7 often file for chapter 13 bankruptcy protection. However, only chapter 13 will save a home from foreclosure. For more information about your options in filing for bankruptcy, please contact the New Jersey bankruptcy attorneys at the Law Offices of Robert Manchel. Call us today at 866-503-5655.