With so many homes going through foreclose across the city, it’s more important that ever for buyers and to understand how the process works.
So, what’s pre-foreclosure in New Jersey, anyway?
Many homeowners, not just in New Jersey but across the United States as a whole, are having a hard time keeping up with their monthly payment.
Once you miss 3 to 6 months in payments, your bank is going to issue you a “Notice of Default, which is what triggers the foreclosure process. At this point, you home has not been foreclosed on yet, but you are in what’s called “pre-foreclosure in New Jersey.”
By law, the bank must give you at least 3 months to catch up on your missed payments, some banks may give you a little bit longer, but they are required to give you a minimum of 3 months before they move you forward in the process. During this time you have a number of options to seek out to remedy the delinquency.
If you are still not able to bring the account current within that time, the bank will move you forward in the foreclosure process and set a date for them to auction off your home. Let’s take a deeper look into what your options are to find a remedy and bring you current.
Pre-foreclosure in New Jersey– Your Options:
When you receive the “Notice of Default” from your bank, you are likely behind about 90-180. It can vary, depending on your bank but in general, this is commonly what we see. At this point, its very important to not panic.
You have options when you are in pre-foreclosure in New Jersey to prevent you from losing your house:
- When you have equity: refinancing the mortgage may be an option. This is where your bank will restructure your loan and get you into a lower monthly payment. Of course you do have to qualify and that is entirely up to your lender. Typically, banks will do this when you still had a partial loss in income and you can demonstrate that you can keep up with a new, lower payment. If your current lender will not approve it, you also have the option of seeking out other lenders that might be willing to take over the loan.
- When you are underwater (negative equity): you should contact your bank to see if they will approve a short sale. Short sales are when you bank agrees to let you sell your house for less than you owe, and the bank agrees to release you from paying the difference back to them. They decide to take a loss and the government gives them a tax write-off. There are some short sales where the difference in what you sold your house for and what how much you owe can be counted as “phantom income” against you. So make sure that you understand a short sale by your bank completely, and are prepared to deal with the ramifications.
- When you want to sell quickly: then your best bet is going to be selling your home to a professional home buyer. Like Savannah Properties, we are a reputable cash home buyer in New Jersey, and we might be able to come up with a creative solution to help you out of foreclosure. There are instances where we can buy your Los Angele house and close in just 10 days. The great part is we pay in cash, and buy completely “as-is” so you don’t have to put any money into your house first. It also takes all the stress out of listing your house and looking for a buyer.
- When you qualify for bankruptcy: this might be something to look at to see if you can get any debts forgiven. When it comes to your house, this is usually just a strategy to buy your some time. There are several different bankruptcies out there so its important to speak with a lawyer so you understand which types would be best for your particular situation to get out of pre-foreclosure New Jersey. It is also important to understand the legal ramification of bankruptcy because it will mark on your credit for 7-10 years and cause serious damage.
If you are honest and keep constant, cooperative communication with your bank, you’ll be setting yourself up for a better time. Banks will be much more willing to help you remedy the situation when they see that you are not blowing of their calls and not answering. They have options that may allow you to stay in your house, or just salvage your credit score at least.
With a foreclosure mark, it can cause your credit score to go down by 200-400 points overnight. That will prevent you from getting another loan of any sort for a good 5 to 7 years. That’s why its very important to be dutiful if you get a Notice of Default from your bank – take swift action.
If it comes to it where you are not able to find a solution by working with your bank, reach out and connect with us. We might have a way to assist with pre-foreclosure in New Jersey.
How We Can Assist If You’re In Pre-Foreclosure in New Jersey
- We can help with a short sale – Short Sales are a tricky process. It all gets down to negotiating with the bank. You have to know what to say and be able to give explanations. We can help with that.
- We buy houses in New Jersey– We can make you a fair, all cash offer for your house. You can fill out our form to get started >>
- We can give you some FREE guidance – We understand that this is a challenging time. As experts in the real estate industry, we feel its our duty to help point you toward good, valuable information to help you navigate through pre-foreclosure in New Jersey. Even if we don’t buy your house, we’d love to have a conversation with you to try and steer you in a good direction for your particular circumstances.
If you’re in pre-foreclosure in New Jersey… you still have time to fix it!
Remember to keep communication with your bank and see if they will work with you to help bring you current when you are in pre-foreclosure in New Jersey. And of course you can always connect with us to see how we can help