It has been reported that more than one in 10 New Jersey mortgage loans are already in foreclosure or are 90 days or more in arrears. The number of mortgage foreclosure actions filed in the New Jersey Courts grew from just over 20,000 in 2005 to more than 51,000 in 2008, 66,000 in 2009, and 58,000 in 2010.
Because of the large number of foreclosures filed during the 2009-2010 period, and the Judiciary's suspension of foreclosure processing, reports indicate that as of August 2011 more than 100,000 residential foreclosure cases were still open. As of today, there are now 257,856 of pre-foreclosures (Lis Pendens) in process. Research indicates that up to 85% of homeowners have no knowledge of their situation or options.
This article will provide some education in hopes that some will be able to take action as soon as possible.
According to SENATE, No. 1584,STATE OF NEW JERSEY, 218th LEGISLATURE,INTRODUCED FEBRUARY 5, 2018, "The report places much of the blame for the large number of foreclosures on the length of time the process takes in the state. It looked at 78 properties and found that it took on average 5.3 years for these to move through the foreclosure process, with one taking as long as nine years. Many of these date to the start of the recession, when the collapse in the housing market created a huge caseload. Reforming this process to speed it up and minimize the amount of time a home sits vacant is one of the report’s recommendations."
The last few months, this process has been streamlined with homeowners unaware of the storm that is about to hit. The process is only about 90 days. Not only are we processing those in foreclosure over the last few years, we now have added additional homeowners that thought they would have time to correct their situation.
Here are a few options to consider during the pre-foreclosure period of your mortgage:
One of the most overlooked options out there is loan modification. Most homeowners are unaware of this process. Before you go into foreclosure, your bank will probably be willing to negotiate with you. They want do not want to foreclose on your house. Arrears has forced them into this decision. Therefore, you may have a payment plan option that will get you back on track, they will be more than happy to help you out.
Another unaware option is using private money lenders. They are also called hard money lenders and will work with those that are facing hard times. If you are facing foreclosure, hard money lenders may be willing to work with you in almost any situation. As long as they believe they can get a return on their investment, they may consider your situation.
This is another option for some homeowners. A short sale is a transaction in which the bank lets the delinquent homeowner sell the home for less than what's owed. The borrower puts the house on the market, often at less than the mortgage. The idea is that, if the home sells, the lender will recoup the majority of what the homeowner owes. This saves the lender the expense of a foreclosure suit and the possible long-term cost of owning a hard-to-sell foreclosed home.
A short sale doesn't always absolve the borrower from the debt he or she incurred with the original mortgage, but it can be better than a full-on foreclosure and can make arrangements in advance.
A short sale is an alternative to foreclosure and may be an option if:
Tyrese Gould Jacinto
Licensed Realtor Associate
Tirelli-Pierce Real Estate, LLC
2581 E. Chestnut Ave, Suite B4, Vineland, NJ 08361
856-362-5651 - Office
865-332-3817 - Cell
Resources for this article:
Short Sale | Know Your Optionswww.knowyouroptions.com
10 Benefits of Short Sale over Foreclosure | HowStuffWorkshome.howstuffworks.com
What Is Pre-Foreclosure and When Will Your House Be Repossessed? | realtor.com®www.realtor.com
Options to Consider During Pre-Foreclosure Periodwww.mortgage101.com
How to Fix South Jersey’s ‘Toxic’ Foreclosure Problem - NJ Spotlightwww.njspotlight.com
Assembly committee puts state's foreclosure process under a microscope | Video | NJTV Newswww.njtvonline.org
New Jersey Real Estate Statistics and Foreclosure Trends Summary – RealtyTrac Real Estate
What You Need to Know About Lis Pendensinfo.courthousedirect.com
Call Tyrese Gould Jacinto to get your FREE Credit Report Summary & Credit Repair Consultation 1-833-818-7700 or visit us here at Lexington Law. Lexington Law offers a free credit repair consultation, which includes a complete review of your FREE credit report summary and score. Call us today to take advantage of our no-obligation offer.