If you have received a notice of default on your mortgage in the mail, or know one is coming due to your inability to pay, you may be wondering what options you have if you are facing foreclosure in NJ. If you are facing foreclosure in new jersey, you are not alone, as thousands of other people are as well. Here are the three primary options that are available to you.
If you are underwater on your mortgage, or owe more than the home is worth, a short sale is one of the options that is available to you. The key to a short sale is finding a buyer who agrees to buy the home for what it is worth, and then getting your bank to agree to take that amount. Luckily, many banks will do it, as it means that they don’t have to deal with another foreclosure in nj, and they won’t have a house that is just sitting empty.
Depending on your specific situation, it may be best to simply walk away from a home if you are facing foreclosure in NJ. If you want to move out of the city, out of the state, or you don’t have steady income, and you can’t find find a buyer to do a short sale, this may be your only option. But before you walk away, check with the bank about cash for keys programs. If you leave your home clean and undamaged, they may give you cash in exchange for your keys.
Renegotiating the Terms of Your Mortgage With the Bank:
The last option you have if you are facing foreclosure in NJ is to renegotiate the terms of your mortgage. You may be able to get them to lower your interest rates, knock off some of the principle from your mortgage, or extend your 15 or 30 year mortgage to a 40 year mortgage. In order to do this, you need steady income showing you can afford your new payments. Not all banks will negotiate with you though, but most will, as again, they don’t want another empty house on their hands.