Legal Question in Real Estate Law in New Jersey

I am 63, my husband is 65. A few years ago we took out a second mortgage on our home, but still had plenty of equity. Now we are underwater on our mortgage(s) for approx 80 - 100 K, and our mortgage(s) payment is 4K a month. Meanwhile our 401K has diminished by half. We have 20K of consumer debt. We can make all our payments but with practically nothing left over to rebuild our retirement funds in the next few yers. I am laid off and cannot get a job of comparable pay (financial industry), and am looking for something even if it pays less, but have found nothing yet. My husband is a consultant in a volatile industry. If a layoff or illness strikes we will be in crisis mode, and if not, we still have no future. We are considering voluntary foreclosure, moving to a home or possibly rental in a less expensive area, paying off our consumer debt and re-building our investment account with the money saved. If we were younger and could wait this out we would never consider this but such is not the case.

How do we go about starting a foreclosure process, if we can do this at all. We are open to any other advice if there is something. We live in Morris County, New Jersey.

Thank you so much.


Asked on 2/05/10, 2:46 pm

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

You do not initiate a foreclosure, your mortgage company does it, if you fail to continue to pay them. I suggest, before you stop paying them, that you contact the holders of the mortgages to see if they are willing (A) to renegotiate rates and/or monthly payments, and/or (B) to possibly consider your poviding them with a Deed in Lieu of Foreclosure.I should caution you that under alternative (B) there could be negative income tax consequences. This is a reply to an Internet question and the reply is not intended to be legal advice or as creating an attorney-client relationship. You should contact your financial consultant for further advice.

Read more
Answered on 2/10/10, 3:16 pm


Related Questions & Answers

More Real Estate and Real Property questions and answers in New Jersey