Li' Kim's $3 million Alpine, New Jersey mansion faces foreclosure, proving once again that even the rich and famous can fall on hard times. Kimberly Jones, also known as Lil' Kim, has had a string of financial troubles, culminating in a 2010 foreclosure action on the property and an IRS tax lien of $127,000 this year.
When a homeowner is struggling to pay his or her mortgage, it is important to consider every debt relief option. One effective option for homeowners to consider is a short sale, which involves the mortgage lender agreeing to allow the homeowner to sell the property for less than what is owed on the mortgage. A mortgage company is typically agreeable to accepting less money in order to avoid the time and expense of foreclosure. Although the amount recovered by the mortgage lender in a short sale leaves the lender "short," it also saves the company a substantial amount of money by avoiding the foreclosure process, so it is often a tempting option for mortgage lenders.
People who are overwhelmed by debt are unfortunately also targets for con artists. Scammers have learned that desperate people often make rash decisions when trying to improve their financial troubles. One area where scammers prey on individuals in financial distress is by offering fraudulent foreclosure and loan modification assistance.
We continue to be surprised by the number of people we meet who desperately need debt relief but who refuse to consider filing for bankruptcy protection because of misinformation they have about bankruptcy. Below are some common misconceptions:
Reports are showing that New Jersey's housing market is slowly recovering. However, throughout New Jersey the average home sales are still lower than those in peak of the housing bubble.
If you are planning to file for bankruptcy protection and you own a home, it is important to understand how to value your house in your filing. All debtors must complete certain paperwork and make financial disclosures in their filing, which includes listing all real property owned and the value of the land and all buildings affixed to the land.
If you are severely delinquent on your mortgage loan payments and you believe your lender will soon be taking action, it is important to understand how foreclosure works in New Jersey. Foreclosure is the legal process where the lender obtains a court order allowing it to sell your house after you default on your mortgage loan. During the foreclosure process, you will have several options to save your home. Thus, even if the foreclosure action has already begun it doesn't mean you should give up hope. Contact us to learn the various options available to you.
One of the biggest concerns people have when considering bankruptcy is whether they will be able to keep their home. The good news is that bankruptcy law offers you several options that permit you to keep your house in both Chapter 7 and Chapter 13 filings. However, if you are severely delinquent on your mortgage loan payments, it makes a big difference in what strategies will work for keeping it.
One of the most common questions we get from our clients is whether they can buy a home after filing for bankruptcy, and if so, how long they must wait to be eligible to do so.
If you are facing financial struggles and you have more than one mortgage on your home, you should consider filing a Chapter 13 bankruptcy case. There are many benefits offered by a Chapter 13 filing. It is a flexible and comprehensive tool for handling all of your creditors at one time, while allowing you to eliminate the majority of your debt. An additional advantage for individuals with more than one mortgage is a procedure referred to as "lien stripping."