Few things are more devastating to families than the prospect of foreclosure. You own your home and you love it — it serves you well. Yet, due to unfortunate circumstances, foreclosure may seem imminent. In such trying times, seeking help for foreclosure becomes paramount.
For local New Jersey families facing foreclosure, the stress can be almost unbearable. Worse yet, the foreclosure process can take months or even years, stretching out the pain for longer than anyone wants.
Fortunately, you have options available to you here in New Jersey — perhaps more options than you realize. There are many strategies that help for foreclosure in New Jersey; these are legal foreclosure avoidance strategies you can implement to help you resolve your foreclosure issue so you can get on with your life.
In this blog post, you will read about 3 ways that you can avoid foreclosure (there are other ways to avoid foreclosure as well). The goal of these strategies is to help you legally and ethically avoid foreclosure and reduce the pain and frustration that you are facing while minimizing any long-term financial commitment or burden to you. Not all of these strategies will apply in every situation but you will probably be able to find at least one of the three ways that will work for you.
Strategy #1: Work out a deal with your lender
The first strategy for help for foreclosure is called a “foreclosure workout”. In a foreclosure workout, you will sit down with your lender and tell them that you do not think you can pay your current mortgage obligation but you would like to figure something out so you can stay in your house and continue to pay your mortgage.
Contrary to popular belief, lenders do not want to foreclose! They want happy customers who pay their mortgages, so lenders are often willing to work with homeowners to figure out a deal. This might include a temporary reprieve on your mortgage payments, or it might include a catch-up strategy where your outstanding mortgage payments are spread out so you can catch up and pay them off, or it might include a restructuring of the outstanding amounts that you owe.
Additionally, during these negotiations, you can inquire about available government assistance programs or refinancing options that might help alleviate the financial burden. It is essential to be transparent about your financial situation and demonstrate a genuine commitment to finding a solution, as this increases the likelihood of reaching a mutually beneficial agreement with your lender.
Strategy #2. Bankruptcy
Filing for bankruptcy may seem like an extreme measure but it is one of the “tools” in your foreclosure avoidance toolbelt. When you file for bankruptcy, you indicate to all of your creditors that you are no longer able to pay your bills. Filing for bankruptcy will put a stop to the foreclosure process because all creditors must stop the collection process.
While it can provide immediate relief by putting a pause on the foreclosure proceedings, it comes with its own set of challenges. Filing for bankruptcy is a little extreme: it may require you to sell off some of your assets in order to pay off your creditors. And, bankruptcy will remain on your credit score for many years, which could impact everything from getting a loan to getting a car… even getting a job. So this should not be your first line of defense!
It is generally advisable to explore less drastic measures first, such as negotiating with your lender or considering other foreclosure avoidance strategies, before resorting to bankruptcy. Consulting with a financial or legal professional can provide valuable insights into whether bankruptcy is the most suitable option for your specific situation.
A short sale is the third strategy for help for foreclosure — this is where you sell your home and put the proceeds of the sale toward the amount owing on your mortgage loan. A short sale is a preferred method for people facing foreclosure because it is proactive, fast, and very effective.
- It is proactive, which means that you take matters into your own hands (that is a major stress eliminator because so much of the stress of foreclosure comes from the process being completely out of your control).
- It is fast — in some cases, you can sell your home in as little as a week! Preventing the foreclosure from dragging on, providing a quicker resolution. That is also because it is local: You can get help for foreclosure in New Jersey since organizations like Beacon Realty Investments help people going through short sales. Ensuring a smoother process tailored to your specific market conditions.
- It is very effective in addressing outstanding mortgage debt because a short sale can completely wipe out (or almost wipe out) the amount owing on your mortgage. If there is any amount left over that is not covered by the sale of the property, you will be responsible for it (although you can sometimes work out a deal with your lender).
With a short sale, you still end up with the reality of having to leave your home but there is a bright side: The impact on your credit is much less (compared to a bankruptcy or a foreclosure) so this is a smart long-term play to give yourself some options. For further professional assistance with short-sale, contact Beacon Realty Investments today at 609-531-4990.
In the journey to avoid foreclosure in New Jersey, remember that help is not just a concept—it is a tangible set of strategies tailored to empower you. Whether negotiating with your lender, cautiously considering bankruptcy or opting for the proactive and efficient path of a short sale, each option is a beacon of hope.
Do not let the stress of foreclosure dictate your narrative; instead, seize the opportunity to take control. The goal is not just resolution but empowerment—to legally and ethically navigate the complexities while minimizing long-term financial burdens. Do not just avoid foreclosure; embrace the possibilities that lie beyond it.