NJ Foreclosure Rates Increasing: Veitengruber Law is Here to Help
At the end of 2025, foreclosure activity increased across the United States. In the month of December, national foreclosure filings totaled 44,990 properties—up 26% from November 2025 and a staggering 57% from December 2024. The state with the highest foreclosure rate is New Jersey, with 2,178 foreclosure filings in December 2025.
Experts point to many factors behind the increase in foreclosures nationwide: financial instability, a difficult job market, high prices for basic goods, and more. Incomes are not rising to keep pace with the rising cost of living, making it increasingly difficult for the average American to make ends meet. But the whys and hows of foreclosure rates at the macrocosmic level do not mean much to NJ homeowners struggling with the very real possibility of losing their home.
Veitengruber Law is here to help. We have worked with NJ homeowners for years to ensure their rights are protected. Here are just a few ways we can protect you and your home from foreclosure.
Loan Modification
Struggling with your mortgage payments? A loan modification may provide the relief you need. A loan modification restructures the terms of your existing mortgage to better align with your current financial situation. While a modification does not guarantee a lower monthly payment, it is intended to make your loan more manageable and sustainable over the long term.
Depending on your circumstances, a modification may:
- Adjust your interest rate
- Extend your repayment term
- Add past-due payments to your loan balance
- Modify other loan terms to improve overall affordability
Once a complete application is submitted and under review, foreclosure proceedings are typically placed on temporary hold. If the modification is approved, foreclosure proceedings are discontinued. A mortgage modification is designed as a long-term solution to help you remain in your home.
Veitengruber Law has worked with many NJ homeowners to get a load modification approved. We know what lenders are looking for and how to negotiate terms that support our clients' financial well-being.
Bankruptcy
Filing for bankruptcy is one of the most effective ways to stop foreclosure proceedings. From the moment you file Chapter 7 or Chapter 13 bankruptcy, you enter into the “automatic stay” period. During this time, creditors and lenders are not allowed to pursue collection efforts—including foreclosure proceedings. Bankruptcy law also allows filers to exempt certain property from the bankruptcy estate. This can include protections for your home equity, such as the federal home equity exemption, which allows you to protect up to $31,575 in equity in a primary residence.
Which Kind of Bankruptcy is Right for You?
Chapter 13 bankruptcy allows you to restructure your debt into a court-approved repayment plan to be paid over 3 or 5 years. At the end of the repayment plan, any unpaid debt is forgiven. This includes mortgage arrears. Chapter 13 is a great option for those who can afford to stay in their home and just need help digging out of unmanageable debt.
Chapter 7 bankruptcy can delay foreclosure, but your options for protecting your home may be limited depending on your situation. Filing for Chapter 7, otherwise known as liquidation bankruptcy, means your assets can be liquidated to pay back your creditors. If you have little equity in your home, or you can fully protect your equity with the above-mentioned bankruptcy exemptions, there is a good chance you will not lose your home as long as you are current on your mortgage.
Veitengruber Law is an experienced bankruptcy and foreclosure attorney and law firm in New Jersey. We offer knowledgeable, compassionate legal advice and defense for NJ homeowners facing difficult times.