If you’re a homeowner in New Jersey who is dealing with a foreclosure, don’t worry – you’re not alone.
According to RealtyTrac, one in every four homes in the state is currently in some stage of the foreclosure process.
To answer the question – Yes! It is possible to sell your NJ house while in foreclosure but it has to be done right.
In this blog post, we will outline the steps that you need to take to sell your home quickly and get back on your feet!
Table of Contents
What Triggers Foreclosure?
It’s every NJ homeowner’s nightmare: You receive a notice in the mail that your home is in foreclosure.
But how did it come to this?
There are a number of reasons why a house may go into foreclosure, but the most common cause is simply not being able to make the mortgage payments.
This can happen for a variety of reasons, including job loss, medical bills, or other financial difficulties.
When Does the Foreclosure Process Actually Start?
The foreclosure process technically starts when a borrower misses their first mortgage payment.
However, most lenders will not begin the formal foreclosure process until the borrower is at least 60 days delinquent on their payments.
Once the lender has decided to move forward with foreclosure, they will send a Notice of Default to the borrower.
This notice gives the borrower a set period of time – typically 30-90 days – to bring their payments up to date and avoid foreclosure.
If the borrower is still unable to make their payments, the lender will then schedule a foreclosure auction.
At this auction, the property will be sold to the highest bidder. If there are no bidders, the lender will take ownership of the property.
How Long Does Foreclosure Take in NJ?
The foreclosure process in New Jersey can take anywhere from six months to two years, depending on the type of foreclosure and the lender.
The two most common types of foreclosures in New Jersey are judicial and non-judicial foreclosures.
Judicial foreclosures are handled through the courts, while non-judicial foreclosures do not require court involvement.
In both cases, the foreclosure process begins when the lender files a notice of foreclosure with the county clerk.
This notice must be published in a local newspaper for four weeks.
After the publication period, the lender can auction off the property. If the property is not sold at auction, it will be returned to the lender.
The foreclosure process can be lengthy and complicated, so it’s important to start planning out the sale of your home if that’s the path you’re looking to take.
Can I Sell My NJ House After The Foreclosure Process Starts?
The foreclosure process in New Jersey can be a lengthy and complicated one, but it is possible to sell your home before the foreclosure is finalized.
If you are behind on your mortgage payments and facing foreclosure, it is important to act quickly.
Once the foreclosure process begins, you will have limited time to sell your home before it is sold at auction.
You may be able to work with your lender to obtain a short sale, which would allow you to sell your home for less than what you owe on your mortgage.
Alternatively, you could try to sell your home through a real estate agent.
If you are able to find a buyer who is willing to pay the full asking price, you may be able to avoid the foreclosure process altogether.
Can I Stop The Foreclosure Process?
In some cases, it may be possible to postpone or even stop foreclosure proceedings.
However, it’s important to act quickly and to understand the options that are available to you.
You may be able to work with your lender to create a new payment plan or to modify your existing mortgage.
You may also be able to sell your home or refinance your loan.
If you’re facing foreclosure, it’s important to seek out professional help as soon as possible.
A housing counselor or legal aid attorney can help you understand your rights and options.
What Happens When My Home is Foreclosed?
After a home foreclosure, the home will be put up for auction.
The lender will give the borrower a notice of sale, which includes the date, time, and location of the auction.
At the auction, the highest bidder will win the property.
If there are no bids, the property will go back to the lender.
The borrower is still responsible for any fees associated with the property, such as outstanding taxes or utility bills.
Once the property is sold, the borrower has 10 days to vacate the premises.
If they do not leave within that time frame, they can be forcibly removed by law enforcement.
After a foreclosure, it can be difficult to obtain another mortgage.
As a result, many people end up renting instead of buying a new home.
So, can you sell a house in foreclosure in NJ?
Technically, yes. However, it is not as easy as just putting a “For Sale” sign up and waiting for offers to come rolling in.
There are many things to take into consideration before selling a home in foreclosure, such as the current housing market, standard costs when selling, and your own personal financial situation.
If you’re thinking about selling your house in foreclosure in NJ, please contact us for a free cash offer and provide more information on our process and what to expect. We help in any situation including job relocation, recent divorce, too many repairs, or even inheritance.
We would be happy to help!
Ronaldo Stewart is a seasoned real estate professional with three years of experience in helping people sell their homes and has established himself as a trusted and knowledgeable resource in the real estate community.