Avoiding New Jersey Foreclosures
Avoiding New Jersey foreclosures start with understanding the process. There are a couple of myths when it comes to foreclosures. I’m hoping I can help alleviate any fears, so that you can make good decisions, based on solid information.
When you first get that notice, it’s a scary feeling. An impending foreclosure means you have the chance of losing your home. No one wants to lose their home. The idea of having to move, and not knowing where to go can be frightening.
I’m sure the first thought is panic. Before you get too overwhelmed, let’s look at what it means. Much of the fear is not knowing what to expect, or when to expect it. Here are a couple of myths that contribute to people’s stress.
Myth #1. Foreclosure is one big event where you will be booted out of your home. Wrong. New Jersey Foreclosures are really a process where the homeowner has lots of opportunity to correct his or her financial difficulties.
The actual process includes the period of missed payments, the issuance of a notice of default and the grace period after, the issuance of notice of auction or trustee sale and period of redemption, and period of the actual sale. All of these things can take months, which means it allows you time to find answers.
Myth #2. Lenders want to take your home because they are greedy. Wrong again. That may have been partly true in the past but considering the state of the economy today and the drastic drop in real estate prices, no lender is keen on foreclosing NJ homes. In fact, they have an excess of homes, and they would rather have the cash.
In fact, you can actually talk with the lender and find out what they can do to help you. It’s quite possible that the lender will be willing to give you ways to correct your default like mortgage reinstatement, or forbearance, or even help you in disposing the property. These are just some the things that you and the lender can agree to solve your mortgage woes. There is hope!
Myth #3. There is no hope after New Jersey foreclosures. Foreclosure may leave a bad mark on your credit history but it will also allow you a fresh start, unburdened by those mortgage payments you could not make. The morning after foreclosure can be a good time to think about career moves or do better financial planning. Lessons can definitely be learned from a home foreclosure experience.
In case you have to deal with a NJ foreclosure as a family, it can be a time to build stronger bond among family members. The transfer to a new home can be very difficult but if family members can support each other, the experience can even bring them closer, something which ma not have been possible in better times.
Of course, make no mistake about it. No one wants his or her home foreclosed. What I am saying is that, home foreclosures are not as scary as we think it is. There are lots of things we can do to avoid it, or if it can no longer be avoided, to cope with it. All that homeowners need to do is to take a breath and plan his or her next step.
