I think we can all agree that the housing market has officially rebounded – but even with a strong housing market, people in New Jersey are still struggling to make their monthly mortgage payments.
If you’re currently underwater on your house, or just having some trouble keeping up with your monthly mortgage payments, you might be worried that your current mortgage provider is going to foreclose – especially with the Great Recession still in the rearview mirror.
The good news is there are a number of options that you have to avoid foreclosure in New Jersey. The number one thing to remember though is that taking action immediately is your utmost priority regardless of your choice, and could essentially save your credit score and your house.
So let’s get right to it on a couple of our quick tips on how to avoid foreclosure in New Jersey with your home.
The Keys of How To Avoid Foreclosure in New Jersey – Don’t Abandon Ship!
We see it all the time – People get into a tough situation and just give up right from the start and walk away from their properties. I’m sure you’ve seen it – there are quite a few areas of New Jersey that are seeing large increases in real estate owned properties, or REO. If you’re not familiar, this what houses are called once the back owns the property after foreclosure occurs.
Detroit is a prime example of what can happen when people abandon their homes… and I’m sure we can all agree that it’s a shame to see a situation like that…
This can definitely be a stressful and trying situation, but it is super important to keep as calm as possible. A foreclosure will have an extremely negative impact on your credit score, and likely will prevent you from purchasing a home for years to come. Selling your home could leave a portion of the loan unpaid and the lender could pursue legal action against you for the remaining balance.
While it may seem bleak, you do have options:
• Negotiate with your mortgage lender. Banks and other lenders are well aware that citizens of New Jersey are struggling. If you have yet to miss a payment then you may have some leverage to renegotiate the terms of your current loan. Banks don’t really like foreclosing on homes, and many will work with you if you aren’t too far behind. You may be offered forbearance or even a full loan modification.
*Note: As of Q3 2019, interest rates appear to be remaining at least the same over the next year, so if you have an interest rate that is higher than current market rates that may give you additional leverage to renegotiate!
• Ask for help from Uncle Sam. Over the last nine years, the federal government has introduced a number of programs to help struggling homeowners. The Home Affordable Modification Program (HAMP) allows homeowners who are struggling to modify their loans, reducing monthly payments. The Home Affordable Refinance Program allows homeowners who are current on their mortgage payments refinance an adjustable-rate mortgage into a low-interest, fixed-rate loan.
Note that both of these programs are subject to eligibility requirements so do make sure to do your homework.
How To Avoid Foreclosure in NJ – Alternative Options
We understand that the possibility of losing your home can be stressful. You aren’t alone. Residents all over New Jersey are going through the same troubles and hardships. Foreclosure can have a lasting effect on your financial life, and it’s important to move quickly and take advantage of any options available. You could save both your credit rating and remain in your home.
We may be able to help you avoid foreclosure… connect with us today and let’s discuss your specific situation. We don’t charge any fees… we’ll evaluate your current situation… and present you your options so you can move forward and get this foreclosure behind you and move on with your life.