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.
Due to the foreclosure crisis that our country has faced, the federal government and numerous state governments enacted laws aimed at prohibiting the abuses that many mortgage lenders were using including harsh variable interest rates, foreclosure rescue scams, robo-signing, dual tracking and others. This blog will focus on dual tracking.
If you are facing foreclosure of your home, it is important to educate yourself about the New Jersey Foreclosure Mediation Program. Several government agencies have combined their efforts to find solutions to the overwhelming number of foreclosure cases in the state. The program focuses on promoting work-out and payment arrangements negotiated between the struggling borrower and his or her lender.
If you are trying to decide whether to refinance or modify your mortgage, it is important to understand how each option works. Many homeowners are surprised to learn that they can modify their mortgage even when they are current on their payments. It isn't a common occurrence, but modifications (also called "recasts") of current mortgages have been available for years.
According to RealtyTrac, the New Jersey metropolitan areas of Atlantic City and Trenton had the highest metro foreclosure rates in the United States for November of 2015. This is the fifth straight month that Atlantic City and its surrounding area have topped the charts for foreclosures. In fact, for every 307 homes in or near Atlantic City, there was a foreclosure filing in November, as compared to one in 1,268 nationally.
The Consumer Financial Protection Bureau (CFPB) has recently issued a final rule setting the effective date of the "Know Before You Owe" mortgage disclosure rule to October 3, 2015. The new rules are formally known as TILA-RESPA, which stands for the Truth in Lending Act and the Real Estate Settlement Procedures Act. The rule requires user-friendly mortgage disclosure forms to be used that clearly outline the terms of a mortgage for a homebuyer.
If you have lost your home in a foreclosure, you may be shocked to learn that you still owe a debt to your mortgage lender! Although the real estate market is slowly recovering, most homeowners in New Jersey have borrowed more than what their home is worth. Thus, when your home is sold at a sheriff's sale, a significant deficiency balance is typically left remaining. The lender(s) that is owed the deficiency balance can file a lawsuit against you to recover this amount.
If you are facing foreclosure of your home, a loan modification may be the answer to your troubles. Before you modify a loan, it is important to understand the pros and cons, including: