An October snowstorm did not stop protesters from rallying against home foreclosures on Oct. 29. The Coalition to Save Our Homes marched in Irvington, New Jersey, to demand that action be taken against lenders. Holding up signs saying “Stop Foreclosures,” they allege that mortgage lenders deliberately overpriced the market.
No doubt, their message resonates with millions of New Jersey homeowners. Ever since the financial crisis hit in 2008, many have found themselves through no fault of their own paying for mortgages that are now worth far more than the actual value of their home. Others are having trouble continuing to meet their financial obligations because of persistent unemployment and loan conditions that may be questionable.
The Coalition to Save Our Homes wants the New Jersey attorney general to institute a penalty against mortgage lenders. The penalty would consist of a reduction of principal to the true market value of the home if the mortgage was deliberately overpriced. That could provide some amount of financial relief to homeowners.
However, it seems unlikely that such a penalty will ever be established, at least in the near future. Meanwhile, homeowners who are trying to stop foreclosure or who are simply having difficulty paying their bills may benefit from the assistance of an experienced attorney. The attorney may be able to help with creating a debt-repayment plan and with negotiating with creditors to obtain more manageable monthly payments. In some cases, bankruptcy could be an option, which would allow the homeowner to discharge their debts under a court process without the constant harassment of creditors.
Source: Fight Back News, “New Jersey marchers brave blizzard to stop foreclosures,” Oct. 31, 2011