With millions of Americans at risk of default and foreclosure on their mortgages, there is one question that’s on a lot of homeowner’s minds. What happens if you can only make a partial mortgage payment?
Most lenders won’t take partial payment, so you’ll likely get the check back in the mail. But you don’t go straight to foreclosure by missing one payment. Foreclosure happens in stages: The first is when the bank decides you’ve officially defaulted on your loan. That usually means you’ve missed more than one payment.
Even if you’ve gotten a notice of default, there are steps you can take to avoid foreclosure now in NJ. One of the most important and difficult decisions is whether you think you can handle the mortgage over the long term with help from the lender. In some cases, that may not be possible and the best solution is to sell your home before the foreclosure process gets started. That way you avoid having the foreclosure on your record and damaging your ability to get credit in the future.
If you’ve got one of those loans that starts at a rate you can afford and then jumps to a level you can’t you may qualify for an interest rate freeze. It’s very difficult to generalize. There are guidelines for lenders, but they’re all voluntary. Each lender is looking at late loans on a case-by-case basis.
The most important thing to do is contact the lender as soon as possible to see if they’ll agree to an alternative payment plan. In some cases, they’ll offer a plan to make up the payments you’ve missed. Or they may agree to change the terms of your loan to something more affordable.
With so many people falling behind, lenders are swamped with calls. So you may want get in touch with a housing or credit counselor who can help you through the process.
Make sure you work with someone who is HUD-approved or accredited by the NFCC. With so many homeowners having trouble, crooks are coming out of the woodwork with a variety of “rescue” scams. Foreclosure notices are public records, so it’s easy enough to find out who’s getting into trouble!
In some cases, these scammers say they’re going to help you but are really trying to buy your house on the cheap or trick you into signing it over to them. Others will charge a big fee to “fix” the problem by filing bogus documents and showing you fake papers that seem to show you’ve solved the problem.
Some scammers will offer to buy your house from you and let you rent it back until you can afford to buy it back. If you miss a payment the deal’s canceled and you lose everything. If you make the payments, the buyback price may be higher than the house is worth.
Of course, there are also legit firms that work with you to either get your home out of foreclosure and back on financial track or firms that will purchase your foreclosed home and allow you to walk away with a nest egg to start fresh in a new home.
We Buy New Jersey Houses For Cash. Get Your Fair Cash Offer Today.
Give us a try! At Scotty Buys Houses we believe in a 100% no-hassle and no-obligation process.
Selling your New Jersey house shouldn’t be tough or stressful.
If you need to sell your house fast and can’t wait the 3-6+ months it can take to sell your house yourself or through an agent, you don’t have anything to lose by seeing what we’ll offer on your house.
Fill out the short form through the link below or give us a call anytime at (973) 910-1001. We’ll get some basic information about your house and within 24 hours will send you a formal written offer. If the offer works for you, we’ll work with a local neutral 3rd party title company to put the sale paperwork together and set a closing date that fits your schedule.
Get the process started below or call (973) 910-1001!