When your home goes into pre-foreclosure, you need to act fast. If it goes into foreclosure, you will lose your house and ruin your credit. Cash buyers in New Jersey may be the best option for solving your financial problems.
Read on to find out more about what a pre-foreclosure means and find out ways that you can overcome your financial predicament.
What is Pre-foreclosure?
If you miss three mortgage payments in a row, your mortgage will be in default. You will get a notice from the lender stating that legal action will be pursued if your debt is not paid. The County Recorder will also be notified regarding their right to file a lawsuit against you.
At this point, your home will officially be in pre-foreclosure status.
If you are unable to get yourself out of pre-foreclosure by paying off your debt, your house may go into foreclosure. This means that you will be forced to move out of your home. The property will be auctioned off to the public as the lender tries to recoup the money owed to them.
The bidding will typically start at the amount owed and it will increase from there. The home will be sold to the highest bidder.
Foreclosure spells bad news for the homeowner. In addition to losing their home, the process will also ruin their credit. This will make it difficult for them to make any major purchases for years. It will also make it hard for them to find new housing.
How to Avoid Foreclosure
There are certain things you can do to avoid foreclosure during pre-foreclosure stages. These include:
Contact Your Lender: Your lender’s priority is to get the money they are owed. Therefore, they often work with homeowners in pre-foreclosure by arranging a mortgage forbearance, or pause in payments, and help them create a payment schedule.
Loan Modification of Refinance: Homeowners may want to invest in a loan modification or refinance when they first discover they are having difficulty paying their mortgage. This will allow them to stretch out their payments so they can pay less each month.
Try a Short Sale: A short sale involves the seller selling the property for less than the balance of the mortgage. It must be approved by both the bank and the lender. Keep in mind that a short sale is so called because the seller will be coming up short on what they owe the lender. Ironically, the process is anything but short. It can drag out for months. This means it’s not the best choice for some who wants to sell house fast in New Jersey.
Get a Deed in Lieu of Foreclosure: Another way to avoid foreclosure is to surrender your ownership rights in the form of a deed in lieu of foreclosure. Once the deed is signed, the owner vacates the property. The lender is then free to sell. Note that in some cases the lender may still want the owner to pay for losses. Borrowers should ask about the lender’s policies before they sign away their rights.
Borrow to See if You Can Catch Up on Payments: Most people don’t like to ask friends and family for money. But if they are willing to lend, they may be able to help you catch up on payments. Once the balance is paid off, the pre-foreclosure process will stop.
How Cash Buyers in New Jersey Can Help
Homeowners in pre-foreclosure may consider selling to cash buyers in New Jersey. This does not mean a regular buyer who is willing to pay cash for your home. Rather we are talking about companies who advertise ‘we buy houses for cash New Jersey’.
The process is easy. All you will need to do is contact the company about your home. You will need to provide them with details about the home. They may also want to see the property in person. Once they have the information they require, they will make you a cash offer.
If you accept the offer, you can close in two weeks or less. This also makes the option attractive to those looking to sell house fast in New Jersey. You can successfully move on from your financial woes.
Companies that advertise ‘we buy houses for cash in New Jersey’ are also ideal for traditional sellers. They will buy your home in as-is condition so there is no need for repairs. You can skip the open house process, and you may even get more of a profit on your home than you would with a regular buyer.
Mortgages are expensive. If you are falling behind, a cash buyer may be your best option. They will help you avoid the pre-foreclosure and foreclosure process.
Will you be consulting them for assistance in getting out of debt?