A clear, actionable guide for homeowners facing foreclosure
Understanding the Foreclosure Process
In New Jersey, foreclosure is a judicial process, which means it goes through the court system. Here’s a breakdown:
- Missed Payments Begin: After 90+ days of missed mortgage payments, lenders typically send a Notice of Intent to Foreclose.
- Complaint Filed: If payments aren’t made, the lender files a foreclosure lawsuit.
- Court Proceedings: The homeowner is served with a summons and complaint and given 35 days to respond.
- Judgment & Sale: If the court rules in favor of the lender, the property is sold at a sheriff’s sale.
How to Stop or Avoid Foreclosure
- Loan Modification: Work with your lender to adjust payment terms.
- Forbearance: Temporarily pause or reduce payments.
- Sell Your Home Fast: Avoid a foreclosure on your record by selling to a cash buyer.
- Bankruptcy: In certain cases, filing for bankruptcy can pause foreclosure proceedings.
- Reinstatement or Payoff: Pay the overdue amount before judgment is entered.
Why Acting Fast Matters
The sooner you act, the more options you have. Foreclosure can severely damage your credit for up to seven years, making it harder to buy or rent in the future.
Bottom Line: If foreclosure is looming, don’t wait. Contact a professional who can walk you through your options—including selling fast to avoid long-term financial consequences.