Options to Stop Foreclosure Fast in New Jersey

Losing your home can be a terrifying thought.  Thankfully there are ways to stop foreclosure fast in New Jersey.  Your first step is to contact your lender.  Once you enter into discussions with a lender or a “servicer”, the company that services the loan for an investor, any number of options are open to stop foreclosure fast in New Jersey.  While lenders are typically NOT required to modify loan arrangements, many will.  The usual choices include:

Loan Modification: This option should be considered when the borrower experiences difficulty making regular mortgage payments as a result of a permanent or long-term financial hardship.  Reducing an above-market interest rate to a market rate and/or by extending the original terms of the note may enable the borrower to continue making payments.  Permanent interest rate reductions appeal most to borrowers, but even a temporary rate reduction of one to three years can provide substantial help when looking to stop foreclosure fast in New Jersey.

Repayment plans:  Say you must miss a payment and that each payment is $1,000.  With a repayment plan you might pay $1,075 a month until the missing money is repaid.

Reinstatement:  Imagine you missed two or three monthly payments.  With a reinstatement, or what is also known as a “temporary indulgence,” you bring your loan current, pay late fees and other costs, and the loan continues as before.

VA Refunding:  If you have a loan backed by the Department of Veterans Affairs, the VA may buy the loan from your lender and take over the servicing.  If you have the ability to make mortgage payments , but your loan holder has decided it cannot extend further forbearance or a repayment plan, you may qualify for refunding, according to the VA.

FHA loans: If you financed with a loan guaranteed by the Federal Housing Administration, contact a HUD-approved housing counseling agency for assistance and advice.

Forbearance:  This is a temporary change in mortgage terms, such as the right to skip a payment or make smaller payments for a year or less.

Private mortgage insurers:  Mortgage insurance companies typically require lenders to begin foreclosure proceedings once a delinquency reaches 150 days or when a sixth missed payment is due. However, such requirements may be waived in areas impacted by natural disasters and for other reasons.

Claim advance:  If you bought with less than 20 percent down then either the loan is self-insured by the lender or you have private mortgage insurance (PMI).  In some cases PMI companies will provide a cash advance to bring the loan current, money which is sometimes interest free and need not be repaid for several years.

Disasters:  Most lenders, but not all, will provide substantial relief in the face of hurricanes, earthquakes and other terrible events.  Typical measures include a suspension of late fees, no late payment reports to credit bureaus, a pause in foreclosure actions and modified payment schedules.  To get such benefits you must contact the lender as soon as possible after the disaster.

Re-amortization: In this case your missed payment is added to the loan balance and is a good option to stop foreclosure fast in New Jersey.  This brings your account current.  However since your debt has increased, future monthly payments may be larger unless the lender agrees to lengthen the loan term.

Deed in Lieu:  The deed-in-lieu would allow you to sign over legal ownership to your home for the lender’s agreement not to foreclose.

Short sale:  An arrangement where the lender accepts less than the mortgage debt in satisfaction for the entire loan amount.  Also called a “compromise agreement” with VA loans.  Be cautious: in some instances money not repaid may be regarded as taxable income.  Also, lenders in some cases may sue to recover any shortfall from this attempt to stop foreclosure fast in New Jersey.

Bankruptcy:  When all other options are exhausted many homeowners consider bankruptcy as a last resort to stop foreclosure fast in New Jersey.  Unfortunately, in most cases bankruptcy only delays the inevitable; in the worst case it can actually speed up the process.

To learn more about ways to stop foreclosure fast in New Jersey, contact Scotty Buys Homes!

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