Facing Foreclosure? There are Options to Help You Stay Afloat.
If you are currently a mortgage holder and you are having difficulty making your payments, first consult your lender or loan officer to explore options other than foreclosure, such as seeking a forbearance, loan modification, refinance, or selling your home through a short sale. Utilize the below resources for information and assistance.
- U.S. Department of Housing and Urban Development
- Fannie Mae
- Freddie Mac
- Joint State-Federal National Mortgage Servicing Settlements
- State of New Jersey Housing and Mortgage Finance Agency
- State of New Jersey Department of Banking & Insurance
- HouseLogic, from the National Association of REALTORS®
- Homeownership Preservation Foundation
- NJ211 (or dial 2-1-1)
If losing your home is in the foreseeable future, it may be in your favor to consider a short sale. The short sale’s effect on credit may not be as detrimental as a foreclosure.
A short sale is a transaction for the sale and purchase of real property where the purchase price is less than the amount required to pay off the liens on the real property, such as mortgages, judgments, taxes, homeowner or condominium association fees, assessments, as well as closing costs including but not limited to brokerage commissions, realty transfer fee, and attorney’s fees.
Short sales can have serious legal, credit and tax implications. Navigating through these long and often-confusing transactions can be difficult. It is advised that you work with a knowledgeable REALTOR® and consult an attorney or tax professional with regard to potential short sales whenever possible. Despite its name, short sales can actually be lengthy processes, as they tend to involve numerous parties.
Beware of scams.
If you’re facing foreclosure, beware of recovery scams or fraudulent companies that target borrowers at risk of losing their homes. Read the warning signs to protect yourself from becoming a victim. Only consult trustworthy resources from state and local government agencies aimed at helping you to prevent foreclosure. If you feel that you have been victimized, report it.