How does the foreclosure process work

When you miss a payment on your home loan for several months, your lender can initiate foreclosure. A foreclosure is the process by which your lender initiates the sale of the property under the loan to repay the amount owed them. The foreclosure process can take several months to a couple of years, and in between that period, it is possible for the delinquent homeowner to take action to prevent foreclosure.

There are two types of foreclosure, and the type being applied varies per state. Some states such as New Jersey follows judicial foreclosure, which means that the lender has to file a lawsuit in court to initiate and conclude the foreclosure process. Meanwhile, nonjudicial foreclosure is followed in some other states where there is a set procedure to be followed by both parties but outside the court system.  

Pre-foreclosure

Missing one loan payment doesn’t automatically mean your property will enter foreclosure. Your lender will most likely impose a late payment fee in this case. If you miss two loan payments, the lender will send a demand letter, as well as making several phone calls, reminding you of the default and to demand payment. While you may be inclined to ignore the letter or avoid the phone calls, this is actually a good opportunity for you to discuss with the lender your options in order to stop foreclosure before it starts. Most lenders would likely offer restructuring of the loan or come up with a payment plan for you to catch up on your missed payments.

Foreclosure

If you and your lender can’t come up with an agreement, and you keep on missing payments, the lender initiates the home-589068_960_720foreclosure process by sending you a Notice of Intent to Foreclose. In New Jersey, after at least thirty days of your receipt of the notice, the lender can file the foreclosure complaint and summons. If you respond to the notice, you will have 45 days to make your loan up to date or reinstate the loan. To reinstate the loan, you will have to pay relevant fees and other costs on top of the monthly payments that you have missed.

Otherwise, the lender will finalize the process with a foreclosure sale. A notice of sale will be mailed to you at least ten days before the foreclosure sale, aside from the notice being posted on the property as well as in the sheriff’s office. At the foreclosure sale, the property will either be sold to the highest third-party bidder or will revert to the lender.

Redemption after sale

For ten days after the sale, and until the court confirms the sale, you can file an objection to the sale. If the lender also obtains a deficiency judgment, you can file for redemption of the property, wherein you have a period of six months after the deficiency judgment. If you file to dispute the deficiency, you forego your right to redeem.  

 

Download our
FREE Market Guide
Now

  • This field is for validation purposes and should be left unchanged.

See Our Google Reviews

Estefania Castaneda
Estefania Castaneda
17:24 04 Sep 21
Extremely pleasant, attentive to all my needs always. It was a pleasure renting an apartment from Ken.
Vichai Soysouvanh
Vichai Soysouvanh
14:17 03 Sep 21
Can't say enough about Ken and his team. This was the most seamless sale I made. I didn't have to deal with all the... nonsense that comes with selling your home. They bought my house as is, I didn't have to declutter and pay a broker commission. All in all great experience, will do business again.read more
Niki Keser
Niki Keser
17:46 06 Aug 21
I had a wonderful experience renting one of their properties for 7 months. The apartment was beautifully remodeled and... Ken and his team were always responsive to any needs. I would recommend to anyone looking to sell or rent.read more
YASMINA VASQUEZ
YASMINA VASQUEZ
15:13 02 Aug 21
Ken and his team were professionals ,they promised and they delivered or anything
Alfredo Garcia
Alfredo Garcia
03:20 17 Jun 21
Selling my property too Ken was the best thing I did. Although I was skeptical at first I soon found out how... professional he was. Even though my closing contract was not standard because of the pendemic situation. He followed through on time with all the contract terms as promised. Thank you Ken for your professionalism.Alfredo Gread more
Vishrut Patel
Vishrut Patel
23:27 19 May 21
Ken was referred to us by someone who had sold their home thru Ken last year. From the first meeting to the last... transaction, Ken and his team were professional, efficient, easy to work with, and above all.... caring. Each seller's situation is different, and Ken truly understands that. We were treated with respect each time.Since we were in a time crunch situation, selling our home with a cash offer from Ken was the best decision we could have made. We were perfectly okay with getting slightly less money for our home as compared to selling it via an agent. But if you consider the money saved on agent commissions (both buyers and sellers), closing costs, repair costs, attorney fees, and most important of all... time and headache, you can't beat the option to sell your home with a guaranteed cash offer from a reputable buyer like Ken.My wife and I were very pleased with our experience with Ken. If you are in the market to sell your home fast for a cash offer, I highly recommend giving Ken a call!Best of luck!Vishread more
Christopher Martino
Christopher Martino
14:19 10 Mar 21
Ken and his team were great. They were easy to work with, professional, and responsive. If you are thinking of selling... your home they offer a super easy process.read more
Chelsea Grant
Chelsea Grant
15:36 03 Jan 21
I am a travel nurse and stayed in a town home for 3 months... It was exactly as described and any issue that came about... was handled within a few hours - I would definitely recommend and I would definitely stay again!read more
Aaron Zachko
Aaron Zachko
12:41 14 Aug 20
Amazing experience! Ken was upfront, quick and got the deal done in no time. Having done a number of real estate... transactions this was by far the easiest and smoothest. I would unconditionally recommend him to anyone looking for an easy, quick and fair transaction.read more
Joseph Tricarico
Joseph Tricarico
19:10 26 Mar 20
Ken is a very professional individual from start to finish. As promised, he gave me a fair deal on my one of my... properties that was in rough shape. He was knowledgeable and responsive to my requests and as promised we didn't need to waste time with inspections and appraisals and we closed quickly. He made it painless as possible by having his crew handle the clean up. This was truly a quick and easy process but a professional individual. Thanks Ken!read more
Next Reviews

Site Map
Privacy Policy

Click for the BBB Business Review of Cash Buyer New Jersey

BBB RATING: A+