Foreclosure in New Jersey: What You Need to Know

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Foreclosure is a legal process by which a lender takes possession of a property when a borrower fails to make their mortgage payments. The foreclosure process in New Jersey can be complex and time-consuming, and it can have serious consequences for the homeowner. However, there are options available to avoid foreclosure, and the state offers various resources and programs to help struggling homeowners.

The Foreclosure Process

The foreclosure process in New Jersey typically begins when a homeowner misses their mortgage payments for several months. The lender will then send a notice of intent to foreclose, which gives the homeowner 30 days to cure the default. If the homeowner does not cure the default, the lender can file a foreclosure complaint with the court, and the homeowner will receive a summons and complaint.

Once the homeowner receives the summons and complaint, they have 35 days to respond. If the homeowner fails to respond, the lender can obtain a default judgment and proceed with the foreclosure sale. If the homeowner does respond, the case will be heard in court, and the judge will make a determination based on the evidence presented.

The Consequences of Foreclosure

The consequences of foreclosure can be severe. Foreclosure can negatively impact a homeowner’s credit score, making it difficult to obtain credit in the future. Additionally, foreclosure can result in the loss of a home, which can be emotionally devastating for the homeowner and their family.

How to Avoid Foreclosure

Fortunately, there are ways to avoid foreclosure in New Jersey. One option is to work with the lender to modify the terms of the mortgage. This can involve reducing the interest rate, extending the loan term, or adjusting the monthly payment. The New Jersey Housing and Mortgage Finance Agency (NJHMFA) offers a program called the HomeSaver Program, which provides assistance to eligible homeowners in obtaining a loan modification.

Another option is to participate in a foreclosure mediation program. This program allows the homeowner and the lender to work together with a neutral third party to find a solution that avoids foreclosure. The New Jersey Judiciary offers a Foreclosure Mediation Program, which is available to eligible homeowners.

In addition to these options, there are also government programs available to help homeowners facing foreclosure in New Jersey. The NJHMFA offers a program called the New Jersey HomeKeeper Program, which provides financial assistance to eligible homeowners who are at risk of losing their homes due to unemployment or other financial hardship. The state also offers the New Jersey Foreclosure Prevention Act, which provides additional protections for homeowners facing foreclosure.

Helpful Government Links

Avoid Foreclosure by Selling Your Home Today

If you’re facing foreclosure, selling your home may be the best option. At Favor Home Solutions, we understand this is a difficult decision to make. We’re here to help you through the process and get you the best possible price for your home.

When you work with Favor Home Solutions, we will:

  • Evaluate your situation and make you a fair, all-cash offer
  • Close on the date of your choice
  • Take care of all the paperwork
  • Pay all the closing costs
  • And much more!

If you’re interested in learning more about getting a free, no-obligation offer for your home, contact us today!


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