What is Foreclosure in East Orange, New Jersey?

Find the right Foreclosure Bankruptcy attorney in East Orange, NJ

Foreclosure is a judicial procedure allowing mortgage lenders to take ownership and/or possession of the debtor's real estate (which was used to secure the loan) in the event of nonpayment in East Orange, New Jersey. Foreclosure typically results in the property being sold in an auction. Banks typically want to get rid of the property as soon as possible, even if it means taking a financial hit, and an auction is the simplest way to do this.

In every state, including New Jersey, there is an option to go through foreclosure by a judicial sale, which is a process in which a court supervises the sale of the property, and makes sure that the proceeds first go the to the holder of the mortgage, then to anyone else who may have a lien on the property, and lastly to the debtor if anything is left. In some states, original mortgages are treated as "non-recourse" loans, meaning that, at most, the lender can take possession of the house in the event of foreclosure, even if it is worth less than the amount due. The bank cannot go after the borrower for the remaining balance once it sells the house. You should consult an attorney in East Orange, New Jersey to find out if this is the case here. This typically does not apply if the mortgage has been refinanced.

How Can I Avoid Foreclosure in New Jersey?

First, you should never dismiss the matter. As unpleasant as it seems, it is necessary to stay on top of the issue. Ignoring the problem will never make it go away. You should remember that banks in East Orange don't want your house. While the foreclosure process can be devastating for the homeowner, it's no walk in the park for the bank, either. They expected to make a profit through interest on the loan paid over time, and foreclosure is a last resort, allowing them to cut their losses and move on. If you are forthright with them, lenders will typically try to accommodate your changed financial situation, to avoid a default on your part, and the necessity of foreclosing on their part.

If you can't work things out with your lender, there are other avenues. You can try a "short sale," which is when you sell your house for whatever amount you can get for it, and use the proceeds to pay your mortgage. If the house sells for less than you owe, the bank still receives those proceeds, but the remainder of the loan will be forgiven. You might also consider a "short refinance" which allows a part of the debt to be forgiven, and lets you refinance the rest.

How Can A East Orange, New Jersey Attorney Help?

If you are facing the possibility of foreclosure, a good East Orange, New Jersey real estate lawyer can help. At the very least, they will be able to inform you of your legal options.

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Life in East Orange

East Orange, New Jersey is a city in Essex County, and it has a population of about 68,000 people. East Orange was originally incorporated by an act of the New Jersey Legislature in 1863.

East Orange is a fairly diverse city, and a significant number of immigrants from the South American country of Guyana have taken up residence there, accounting for 2.5% of the population. As with any city with a significant immigrant population, immigrant communities have added a touch of their own culture to East Orange, giving it that much more character.

New Jersey has designated the city of East Orange as an "urban enterprise zone." This is a package of benefits that the state extends to entrepreneurs if they decide to open a business in a community that needs economic revitalization. Businesses are encouraged to set up shop in these zones mostly with tax and regulatory breaks. As an attempt to stimulate consumer spending in these areas, the sales tax is lower than in other parts of New Jersey.

There are plenty of East Orange, New Jersey lawyers who can probably handle any legal issue that you might find yourself facing. If you find yourself with any legal problems, you should call an East Orange, New Jersey lawyer as soon as possible.

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