how to stop foreclosure in New Jersey is considered the last option to homeowners that have given up on their house. Most homeowners that fall behind on their house feel like foreclosure is the only option, they vacate the property and stop communication with their lender. That is not the route to take.
Lenders would rather for you to give them the deed back than to force them to take your house. Giving the deed back to the lender is called a deed lieu of foreclosure. They would rather receive full pay off or some type of pay off so they can recoup money without taking too much of a lost. However deed in lieu of foreclosure is better than foreclosure which makes it the 2nd choice to foreclosure. A deed in lieu will not look as bad as a foreclosure, but there is a better way.
The short sale is sort of a charge off but doesn’t look as bad on your credit as a charge off. Most lenders won’t lend to a homeowner, that has forced their lender to foreclose on their house or give the deed back to the lender, for at least 5 years. In the case of a short sale lenders will give the homeowner a chance to own another home in 2-3 years which will be based on the way you handled your debt and your job stability within that time. Short sales saves your lender time to get back into the market and to be honest no one can really be a solid position to buy a house sooner than 2 years anyway.
A short sale is when a homeowner goes to their lender to let the lender know they need to sell their house in order to stop the foreclosure that is sure to come. The term sale your house short means that the homeowners lender will accept less than what is owed on the mortgage to stop the house from going to foreclosure. There are a wide range of reasons why a lender would reduce the mortgage balance and it’s sort of the same as negotiating with your credit card company to reduce the balance for a full pay off. Short sales are slowly becoming the chosen way to stop foreclosure. The short sale process has been around for years but hit mainstream when the mortgage meltdown nearly brought the economy down it’s knees. Homeowners can be a position to purchase a house in 2 years and can avoid the costs of foreclosure. Plus the homeowner can receive relief from their lender coming after them for the shorted balance.