That’s a word dreaded by all homeowners. It means that your property is going to be seized and there’s very little you can do about it unless you can pay up. Even worse, because of how hard times have been over the past few years, it’s not unusual for the average family to be behind on their mortgage.
Having said that, your New Jersey house doesn’t need to be foreclosed just yet. Even if you are facing financial troubles, there are things that you can do to keep it under your name and prevent yourself and your family from being without a home.
Below are tips that we’ve gathered to help you avoid getting your New Jersey house foreclosed:
1. Renegotiate the Terms
If you have only missed a couple of payments, the best thing that you can do is to call your lender and let them know about the situation. Be honest about it. Remember, they are after what’s in their best interests, and it is beneficial to them that you keep on paying for your loans.
If you’ve been behind for months, you can try and negotiate a repayment plan to help you catch up. Or, you can also try restructuring the deal so you’ll end up paying less monthly in exchange for extending the payment period by a couple for years.
Either way is better than losing your home.
2. Short Sale
A “short sale” is the term used to describe a sale where the house is sold for less than the price still owed for it. It is usually the lender who agrees to do this sale, and often when all options have been exhausted. Lenders see this as a way to recoup some of their costs while also avoiding having to deal with foreclosing a house.
If the short sale is approved and a buyer is found, the borrower will no longer have to pay for anything, albeit the borrower won’t be getting any money for the house either.
3. Sell Your House
This is a pretty simple process, but not as simple as just typing in “sell my house fast NJ” on Google and hope that buyers flock you. No.
Remember, you are at a disadvantage in that you still owe money to the lenders for your house. This means that buyers will hesitate to work with you, especially if the house isn’t in good shape, which it likely won’t be because of how you’ve been behind on your mortgage payments lately.
Regardless, if you plan on selling your house, you can either list it or go directly to a direct cash buyer. The latter, you can find, by googling, “we buy houses cash NJ” and sifting through the results.
Of the two, you’re better off selling to a direct buyer, mainly because they’ll buy your house as soon as possible, allowing you to be freed of your mortgage while also making sure that you get a fair price for your house.
Financial difficulties can and do happen to anyone. It can happen to me or to you. What’s important is to take no shame in it and, instead, find a way to remedy and fix the problem. Whether that is by renegotiating with your lender or selling your house is completely up to you.