Table of Contents
- What is foreclosure?
- My mortgage lender is sending me letters about foreclosure. What should I do?
- I am behind or late on my mortgage payments, or fear I soon will be. What should I do?
- I can no longer make my mortgage payments. Should I walk away from my house?
- How long can I stay in my foreclosed home?
What is foreclosure?
Foreclosure is the process by which your mortgage lender legally takes possession of the mortgage property for failure to pay or keep up with mortgage payments. The foreclosure timeline varies depending upon the state you live in. For information regarding New Jersey foreclosures check out our NJ Foreclosure timeline.
My mortgage lender is sending me letters about foreclosure. What should I do?
Some of these letters are known as Notices of Default (NOD), and a lender typically sends them out when a borrower is three months behind on their mortgage payments. A NOD means that you are in violation of your contract, and have a certain amount of time to correct the violation. When you get a letter like this, your first course of action should be to contact us or your mortgage company to see what options are available to you to avoid foreclosure. The sooner you do this, the better your chances will be.
I am behind or late on my mortgage payments, or fear I soon will be. What should I do?
Your first step should be to contact us right away to discuss your options, even if you haven’t missed a payment yet. We will be able to inform you of short term options to recoup after a couple of hard months, or long term options to alter the terms of your loan. It is better to be proactive about this than to wait for your lender to contact you with a notice of default.
I can no longer make my mortgage payments. Should I walk away from my house?
No, it is always preferable to seek other options to avoid foreclosure rather than walk away from your home. If you can no longer pay your mortgage and want to leave, contact us to see if you are eligible for a Short Sale (where you are permitted to sell your home for less than your remaining mortgage) or a Deed in lieu of Foreclosure or Mortgage Release (where you can surrender your property to your lender in exchange for forgiving the remaining debt.)