Foreclosure-Prevention Agency in New Jersey Shuts Down Amid Increase in Foreclosure Filings

A Millville nonprofit agency, Ahome Affordable Homes, recently stopped its foreclosure-
counseling services, according to a story in Philly.com. Ahome was formed 20 years ago and had helped over 2,000 people dealing with foreclosure.

The Consequences of Ahome’s Closing

At the time Ahome shut down its foreclosure-assistance program, it was working with well over 400 clients in need of counseling. These homeowners will be directed to other agencies to assist them with foreclosure-prevention. Our Moorestown real estate attorneys know that Ahome’s closure comes as New Jersey is expected to see an increase in foreclosure filings. By the end of April, New Jersey has already had over 7,500 foreclosure filings this year, and the number of filings will likely continue to grow.

Ahome closed its foreclosure-assistance services due to changes in the way New Jersey reimbursed the agency for its services. In addition, the nonprofit agency was unequipped to deal with new alternatives that exist for  homeowners faced with the threat of foreclosure and the long wait period needed to resolve foreclosure cases. Although Ahome notified the state about the shortage of funding last year, the nonprofit organization could not afford to continue these services and had to lay off four counselors in addition to other staffers.

Our New Jersey real estate attorneys, who assist homeowners throughout New Jersey, are well-versed in the different alternatives to foreclosure and have the expertise needed to guide you through foreclosure-prevention. Also, it is crucial to remember that in many situations a homeowner’s lender often pays all of the homeowner’s legal fees. That means that homeowners struggling with their mortgage may be able to hire an attorney without paying money out of their own pocket.

Currently, there are 23 other foreclosure-counseling organizations that are continuing to offer services in this area. These foreclosure-prevention agencies do not operate by providing money to homeowners in need. Instead, counselors at Ahome worked to help clients organize their finances before a bank or lender filed for foreclosure and left the homeowner without their most valuable asset.

Choosing the Right Professional to Help with Foreclosure-Prevention

While Ahome was a respected nonprofit organization in Millville, it is important to realize that there may be other foreclosure-consultants who might be looking to scam homeowners in desperate need of help. For these reasons, it is important to remember that only a lawyer can give legal advice. Understanding the foreclosure process and the issues around mortgages in default is often a complicated and difficult process, and you will want to work with an attorney you trust.

When homeowners look to professionals to help them with a possible foreclosure, they have often reached their limit and feel powerless. Our Burlington County foreclosure attorneys knows that real estate law is complex, and it is not always immediately evident which option is the best for a particular homeowner. Therefore, homeowners should be leery of any organizations or consultants that seem to offer quick and immediate solutions without first gathering all the facts and information from the clients about their circumstances.

Legal Advice

With Ahome’s closure in Millville coming just as foreclosure filings are projected to increase, it is unclear whether other trusted nonprofits can cope with the changes in funding and remain available to offer foreclosure-assistance. If you have questions related to your mortgage, do not hesitate to contact one of our qualified New Jersey real  estate attorneys who will help you find the best solution.

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