The prospect of foreclosure can be intimidating. However, at Casa Real Properties, we understand that life can throw unexpected challenges your way. We recognize that circumstances can change, making it difficult for you to keep up with your mortgage payments and potentially face foreclosure. Rest assured, we are here to assist you. With our expertise in the foreclosure process, coupled with our network of programs, lenders, and attorneys, we can guide you through the process, present you with viable options, and help you retain ownership of your home.
Steps to Foreclosure in New Jersey
When you fail to make your mortgage payments, you fall into default on your loan. Traditionally, lenders initiated the foreclosure process after three or more missed payments. While this used to be the norm, recent changes have come into effect. In most cases, federal law prohibits lenders from filing the initial foreclosure complaint until you are more than 120 days late. However, keep in mind that some lenders may initiate foreclosure after just one missed payment.
2.) Notice of Intention to Foreclose
Before filing a foreclosure complaint, the lender must send you a Notice of Intention to Foreclose. This notice must be sent to you via certified or registered mail, providing a 30-day window before the complaint is filed. This grace period allows you time to rectify the default. The notice will outline the amount owed, specify the defaulted aspects, highlight your rights to sell the property, and provide any other relevant information.
3.) Foreclosure Compliant
If you haven’t resolved the default within the 30-day period, your lender will file a Foreclosure Complaint and serve you with the necessary documents. After being served, you have 35 days to either accept or contest the complaint.
4.) Notice of Entry of Default and Entry of Final Judgment
If you fail to respond to the complaint, the lender must send you a notice offering a final opportunity to rectify the default at least 14 days before the Entry of Final Judgment is made. If you are unable to resolve the default, the court will issue a writ of execution.
5.) Sheriff’s Sale
Upon receiving the writ of execution, the sheriff will schedule a sale of the property within 150 days. You will be notified about the scheduled sale date. After the property is sold, you have a 10-day window to reclaim the property by either selling or refinancing it.
Actions You Can Take to Avoid NJ Foreclosure
1.) Contact Your Lender
If you are struggling to meet your mortgage payments, it is advisable to be proactive. The Consumer Protection Financial Bureau recommends contacting your lender immediately. Explain the changes in your situation and discuss your plans to overcome the difficulties. Your mortgage lender may be willing to assist you by devising a mutually acceptable plan to avoid foreclosure. They might offer temporary payment reductions or suspensions, working with you to help you get back on track.
2.) Reach Out to a HUD-approved Housing Counselor
The Department of Housing and Urban Development provides a free service where you can discuss various options to help you retain your home.
3.) Explore Refinancing Options
Numerous programs are available for homeowners facing financial hardships. These programs often offer free counseling, and there may be specific assistance available for military personnel or individuals with unique circumstances. At Casa Real Properties, we have a vast network of mortgage lenders and attorneys who can assist you throughout the process. Request information via our contact form for assistance.
4.) Consider Loan Modification
Loan modification is a viable option that involves modifying your existing loan by incorporating the default amount into the loan balance. This may also involve adjusting the loan’s duration or interest rate.
5.) Sell Your Property
If your circumstances have significantly changed, making it impossible to sustain homeownership, and you wish to sell your home, please contact one of our realtors for dedicated assistance.
How Casa Real Properties Can Assist You
At Casa Real Properties, our goal is to help our clients achieve the American Dream of homeownership. We strive to ensure that you can comfortably live in a home that aligns with your financial capabilities. Whether it’s financing, sales, or other recommendations to help you maintain ownership of your home, we are here to support you. Reach out to us today for expert assistance.