Social Distancing, Bankruptcy and Foreclosures in New Jersey

Mortgage companies were proceeding against home owners in arrears before we all knew what Social Distancing was, and they will continue after the Coronavirus goes away. However, at least in New Jersey there is a 90 day moratorium on foreclosures. Eventually, the pandemic will pass and the mortgage companies will again want to be brought current or the foreclosures will resume. In that event, there may be several ways of addressing the mortgage arrears. In light of the devastating impact of the Coronavirus, some lenders may be more willing to modify a mortgage or perhaps defer a few of the missed payments rather than modify the whole thing. Bankruptcy will also remain an option. Through a chapter 13 bankruptcy a homeowner can resume their regular mortgage paymewnts and generally compel the mortgage company to accept payments over a period of time, usually five years. So while it may be a struggle to get through the next few months, the good news is homeowners should be able to retain their homes.