7 Things You Can Do to Stop NJ Real Estate Foreclosure

What to do to avoid foreclosing on your NJ real estate home

 

Foreclosure is a process that many homeowners fear, especially in today's economy. There is good news though; there are ways to avoid foreclosure. A reputable NJ real estate agent can help you sell your home as an alternative to you being forced to leave. This is never a pleasant experience, however for those who have little choice next to having their home foreclosed on, take some time to review a little bit of advice to help your financial situation.

Below are 7 ways to stop foreclosure:

Increase Your Income

There are many ways to increase your income. You can ask for a raise at work if you are doing a good job and have a valid reason, such as a high level of productivity, or you can get a second job to bring in more income. NJ real estate agents highly suggest that clients increase their income in an effort to increase their household budget. Maybe you even have room in your home to consider taking in a tenant who pays you rent.

List Your Home For Sale

If you cannot afford your home, you should consider selling it because you cannot afford the payments. This may be your last resort, other than the house being auctioned at a foreclosure sale and you being forced to leave your home. Team Chris Walsh agents are highly trained in all aspects of the foreclosure process and can provide expert advice regarding the best way to handle this situation.

Refinance

If you have equity in your home, consider refinancing to get a lower payment and/or pull out some cash to make up the missed payments. Be sure you can make the payments on the new mortgage and afford the NJ real estate closing costs.

Pay Your Mortgage On a Timely Basis

Although it may sound a bit silly, many NJ real estate homeowners do not make their mortgage payments on time every month. The fact of the matter is that if you make your mortgage payment, you will not be in danger of losing your house. Furthermore, it is important to remember that your mortgage is attached to your house and if you do not pay your mortgage, the bank can foreclose and take your house. This is not the case with credit cards. Credit cards are unsecured debt, they can file a lien against the house but they cannot force a foreclosure. If you are not able to pay all of your creditors, consider which bills you are going to pay.

Apply for a Loan Modification

Contact your bank, attorney, or a loan modification company that specializes in working with banks to modify mortgages. The bank may allow you to make up the back payments over time. Many times, if you had a hardship that caused you to miss your mortgage payments and it has been corrected, such as a job loss, the bank may allow you to make up the missed payments over a period of time. This means you will have an additional monthly payment on top of your monthly mortgage payment. Another alternative is to contact the bank to adjust the terms of your NJ real estate loan. Again, if you have corrected the problem that caused you to miss mortgage payments, the bank may change the amount of your monthly payment, adjust your interest rate, or change the amortization from, say, 15 years to 30 years.

Claim Bankruptcy

A Chapter 13 bankruptcy is “reorganization,” and you will have to make payments for the bankruptcy and continue to pay all existing payments on time. A Chapter 7 bankruptcy is a forgiveness, but not likely to be approved when you have an asset such as NJ real estate. This is a temporary solution. You must perform according the bankruptcy terms in order to keep your house. If you file bankruptcy and do not make your payments to the bank, the bank can be excused from the bankruptcy proceedings and move forward with the foreclosure.

Give Your Home Back to the Bank

You can sign the home over to the bank, avoiding legal proceedings to foreclose and not having a foreclosure on your credit report. You can then move on with your life.

 

The real estate market is changing rapidly and expanding into new avenues almost daily. Sometimes it can be very difficult to find the answers you need on a specific topic or issue. In times like these, you need a real estate professional who will provide valuable information and trustworthy advice. For more information on NJ real estate, call us today or click here to be connected with one of our top real estate specialists.