Can I Still Sell My House In Foreclosure In New Jersey?

The simple answer is yes, if you’re a New Jersey homeowner you can sell your home even during foreclosure. If you’re struggling with being months behind on your mortgage and are dealing with a long term financial hardship rather than a short term setback, selling your home may be the best option for you and your situation. 

But before you decide to go list your home today, there are a few more things you need to understand about foreclosure and what effect selling your home may have on your finances.

Additionally, some homeowners believe that their foreclosure ends once their house has been sold, but that isn’t always the case. In some situations, lenders have the ability to get a court ordered deficiency judgment, which forces the homeowner to keep making payments on their loan even after their home has been sold. 

So yes, selling your home during foreclosure can be done but it’s not the only option that you have, especially if you want to keep your home or stop foreclosure all together. Knowing which option is best for you and your situation can be tricky but not impossible – keep reading to find out how.

And if you’d like to cut straight to the chase to find out your options in your situation, be sure to schedule a free consultation with our foreclosure attorneys.

What Is The NJ Foreclosure Process Like?

The New Jersey foreclosure process can be long and complicated, especially for someone who has no experience dealing with foreclosures. As one of New Jersey’s trusted foreclosure defense law firms, Denbeaux & Denbeaux has a thorough understanding of the foreclosure process and years of experience helping homeowners save their homes from foreclosure.

One of the first things we always recommend to our clients is to answer the initial Notice of Intent (NOI) to foreclose. We know how tempting it is to not respond to the NOI from your lender but that’s actually one of the worst things you can do in this situation.

Homeowners have certain rights that allow you to fight against foreclosure and potentially save your home. By not answering the NOI you are essentially forfeiting your rights to fight against the foreclosure.

If you don’t respond to the complaint, your house goes directly into foreclosure and can be sold in as little as 6 months.

Once you respond to the initial complaint, the next step is to gather all mortgage paperwork and communications from your mortgage servicer and lender as well as any loan modifications. This helps you keep track of important information and timelines that you may need later on.

Gathering all of this important paperwork could help you figure out if you should really be foreclosed on or if your mortgage company violated your rights. If this happens, you could have the opportunity to delay the foreclosure or stop it in its tracks.

Depending on the circumstances of your situation your house could end up in a sheriff’s sale, one of the final steps in the foreclosure process, where your lender will attempt to sell your home for the full amount that you owe them. Until your house enters into a sheriff’s sale, however, homeowners still have the right to sell the home.

How To Sell Your House During Foreclosure

Homeowners that want to sell their home during foreclosure may be able to do so with a short sale. A short sale allows homeowners to sell their house before the sheriff sale. You may be able to get a short sale on your home depending on your lender and how much time you have left before the start of the auction. 

When approved for a short sale, be sure to speak with a trusted real estate agent in your area. Homeowners can try and sell their homes independently however that’s not usually recommended especially since foreclosure can be such a time sensitive process.

Working with a well-known real estate agent who has good connections could make the difference in your home being sold before the sheriff sale.

Should You Sell Your House In Foreclosure?

Like we mentioned before, selling your home in foreclosure may be the best option for you and your situation, especially if you are struggling with long-term financial hardship and aren’t sure when you’ll be able to recover. But it’s nice to know that it isn’t the only option you have.

What you might not realize is that your home has built up equity in it over time which could help you get out of foreclosure once you sell. Due to the circumstances that come with a short sale, your home may lose that built-up equity. 

On top of that, if you don’t sell your home for the amount that you still owe on your mortgage, your lender could have a court order a deficiency judgment on you. This means that even though you already sold your house, and may have thought you were out of foreclosure for good, you will still have to make payments to your lender to cover the remaining balance of your mortgage loan.

Thankfully, there are better alternatives to a short sale that could help preserve the value of your assets better and potentially stop the foreclosure.

  • Pay off the entire mortgage loan. One of the fastest ways to stop foreclosure is to pay off the entire mortgage. This might not be financially possible for everyone, but this option is available for those who can afford it and are looking for a quick way to stop foreclosure.
  • Get up-to-date on mortgage payments. This could stop foreclosure as long as the homeowner is able to keep making mortgage payments on time.
  • Pursue a loan modification with your lender. A loan modification allows you to change the terms of your mortgage which could mean making payments smaller or giving you more time to pay.
  • Investigate for RESPA violations. Lenders and servicers can make mistakes during the foreclosure process that can violate federal laws to protect homeowners. If there have been violations during foreclosure, you may be able to save your home. 

Loan modifications are a great option for homeowners that are struggling financially to pay their mortgage but be aware that mortgage servicers are notorious for playing games to maximize their investments. Consider working with a loan modification and foreclosure defense attorney who may be able to analyze your situation and help defend your rights as a homeowner.

Talk To A Foreclosure Defense Attorney Today

Joshua Denbeaux is a trusted New Jersey foreclosure defense lawyer who is committed to helping his clients through the foreclosure process and defending their homeowner rights against schemy mortgage servicers who will try to take advantage of your situation for their own gain.
Set up a free consultation today and find out how Joshua Denbeaux may be able to help find the best solution for stopping foreclosure based on your unique situation.

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