How to Avoid Foreclosure In New Jersey
No matter what state the economy is in, your individual situation ultimately impacts whether or not you are able to pay your mortgage. Even in a booming New Jersey job market, illness can still strike leaving you unable to work. If you find yourself on the verge of foreclosure for any reason, assistance is available. According to RealtyTrac, the foreclosure process in New Jersey takes approximately nine months. Seek help at the first sign of trouble.
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Face the foreclosure. You cannot ignore foreclosure in hopes that it will go away. Contact your lender to address the situation. Explain the reason you are unable to make your mortgage payment. Even if you have not fallen behind yet, you may be eligible to refinance your loan at a lower interest rate. New Jersey homeowners suffering a hardship can request the lender grant a forbearance. A forbearance is a temporary payment suspension for a specific period of time. After the forbearance, you must begin making your payments and repay the missed payments, usually through a repayment plan. Another option your lender can offer is a loan modification through the federal Making Home Affordable program. Financial documents and a hardship letter are usually required by the lender to explore foreclosure prevention options.
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Sign up for assistance through the Office of the Courts Foreclosure Mediation Program. The program provides help from housing counselors approved by the U.S. Department of Housing and Urban Development (HUD). Counselors review your loan and finances to identify options. Mediation is also available through the program. Through a mediation session, homeowners meet with their lenders and a neutral third party to resolve the delinquent loan. If all else fails, free legal aid is also offered. Pro bono attorneys offer services such as legal advice or representation to low-income homeowners. Call 888-989-5277 to apply.
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Refinance through the Home Ownership Preservation Refinance Program (HPRP). Homeowners who are denied a loan modification, experience a payment increase due to an adjustable rate loan or suffer a hardship are eligible to receive a low-interest 30- to 40- year loan. HPRP also assists with closing costs. Call 800-446-7467 for more information.
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