How to Challenge a Foreclosure: Legal Defenses and Options
Sept. 23, 2025
Facing foreclosure can be one of the most stressful experiences a homeowner may ever go through. It threatens not just property ownership but also financial stability, credit standing, and family security. Many people in this situation feel overwhelmed, afraid, and unsure of where to turn.
What many people may not realize is that legal strategies exist to help protect both your home and your rights.
At The Law Office of Victor Druziako, P.C., I provide guidance and representation to New Jersey residents fighting foreclosure and other financial struggles. Located in Vineland, New Jersey, my practice serves the South Jersey region.
I work closely with my clients to review their circumstances and determine what legal defenses and options are available. If you’re facing foreclosure in South Jersey, you don’t have to go through it without help. Reach out today to discuss your options.
Why Foreclosures Happen
Foreclosures typically occur when a homeowner falls behind on mortgage payments and the lender moves to reclaim the property. This process is meant to help lenders recover losses, but for homeowners, it often feels devastating. There are several common reasons foreclosures happen:
Job loss or reduced income: Many people struggle to keep up with mortgage payments after losing employment or experiencing pay cuts.
Medical bills: Unexpected healthcare costs can create significant debt, leading to missed payments.
Divorce or separation: Financial strain following a breakup can result in foreclosure proceedings.
High interest rates: Adjustable-rate mortgages can become unaffordable when rates increase.
Unexpected expenses: Emergencies such as car repairs or home maintenance issues may divert funds from mortgage obligations.
While these challenges can lead to foreclosure, the good news is that legal defenses may be available. Homeowners don’t have to simply accept losing their property.
Common Legal Defenses Against Foreclosure
Homeowners facing foreclosure may have several legal arguments available to challenge the process. The specific defenses depend on the facts of each case, but here are some of the most frequent options.
Improper service of foreclosure papers: Lenders must follow state law when serving foreclosure documents. If the service was done incorrectly, it may provide grounds to challenge the action.
Mistakes in mortgage accounting: Sometimes lenders miscalculate payments, fail to apply payments correctly, or add fees that aren’t permitted.
Violation of consumer protection laws: Lenders must comply with both federal and state consumer protection rules. Violations can be used to challenge a foreclosure.
Failure to follow state foreclosure procedures: Each state, including New Jersey, has strict requirements for how foreclosures must proceed. Lenders that fail to comply may lose their right to foreclose.
Evidence of predatory lending: Unfair or deceptive loan terms may give homeowners legal defenses.
Before moving forward, it’s critical to have an attorney review the case. Identifying the right defense could be the difference between keeping and losing a home.
Loan Modification as an Option
One common alternative to foreclosure is negotiating a loan modification with the lender. This process involves changing the original terms of the mortgage to make payments more manageable.
Possible modifications include:
Lower interest rates: A reduced rate can lower monthly payments.
Extended repayment periods: Lengthening the loan term spreads out payments, making them smaller.
Principal reduction: In some cases, lenders may agree to reduce the overall balance owed.
Loan modifications can be difficult to secure without professional help. An attorney can negotiate with lenders on behalf of homeowners and push for more favourable terms.
A loan modification doesn’t just provide financial relief; it also gives homeowners the chance to stay in their property and avoid the long-term impact of foreclosure on credit. In addition, a successful modification can stabilise household finances, restore peace of mind, and create breathing room for families to focus on rebuilding their future.
Mediation in Foreclosure Cases
In New Jersey, foreclosure mediation programs exist to help homeowners and lenders explore alternatives before final judgments are entered. Mediation is a structured meeting where both sides discuss possible solutions, with the assistance of a neutral third party.
Benefits of mediation include:
Open communication: It creates a formal space for discussions that might not happen otherwise.
Exploration of alternatives: Options such as repayment plans, loan modifications, or short sales may come up.
Delays foreclosure: Mediation can slow the foreclosure timeline, giving homeowners more time to evaluate their options.
Mediation doesn’t always resolve the case, but it can create opportunities for compromise and help homeowners find a path forward without losing their property.
Filing for Consumer Bankruptcy
When foreclosure seems imminent, one of the most powerful legal tools available is filing for consumer bankruptcy. Bankruptcy provides an automatic stay, which immediately stops foreclosure proceedings. This means lenders can’t continue their efforts until the court reviews the bankruptcy filing.
Two primary types of consumer bankruptcy may apply:
Chapter 7 bankruptcy: This process can discharge certain debts, but homeowners may still risk losing their property depending on equity and exemption rules.
Chapter 13 bankruptcy: Often the better option for homeowners, Chapter 13 allows for a repayment plan spread over several years. Mortgage arrears can be included, giving homeowners the chance to catch up and keep their home.
Consumer bankruptcy can also address other debts, such as credit cards and medical bills, creating more financial breathing room.
For many people, consumer bankruptcy is not a last resort but a strategic step toward saving their home and regaining financial stability.
Other Alternatives to Foreclosure
Not every homeowner is in a position to fight foreclosure directly or file for consumer bankruptcy. In some cases, other alternatives may be more suitable.
Short sales: Selling the property for less than the mortgage balance with lender approval can prevent foreclosure and lessen credit damage.
Deed in lieu of foreclosure: This involves voluntarily transferring the property to the lender, avoiding foreclosure proceedings.
Repayment plans: Some lenders may accept structured repayment agreements to cover missed payments over time.
These options may not keep homeowners in their property, but they can help reduce long-term financial harm. Having legal guidance is essential to make sure these agreements protect the homeowner’s interests.
Taking Action Quickly Matters
Foreclosure processes move quickly. Once initiated by a lender, strict deadlines follow, and delaying action can limit available options. Taking prompt steps offers homeowners the best chance to protect their property.
Whether it’s raising a legal defense, negotiating with the lender, entering mediation, or filing for consumer bankruptcy, early intervention makes a significant difference. Homeowners who seek legal help sooner often have more paths available to them. Prompt action also helps preserve important rights and can prevent lenders from gaining an advantage in court.
The sooner you reach out for guidance, the more likely it is that you can find a solution that protects your home and your financial well-being.
Contact an Experienced Lawyer
If you’re facing foreclosure in South Jersey, including Vineland, New Jersey, you still have legal options. At The Law Office of Victor Druziako, P.C., I help clients fight foreclosure, explore alternatives, and determine whether consumer bankruptcy is the right step. You don’t have to face this alone—reach out to my office today to protect your home and future.