Thanks to Steve Lupton of MetroCities Mortgage for these pearls of wisdom for Homeowners & New Jersey Real Estate Agents on how to avoid Forclosure on New Jersey Homes.
Few things are as devastating as losing your home. Sadly, it's not always inevitable. In many cases the foreclosure could have been avoided with some outside help.
We are in a unique position to advise our clients in financial matters. If you know that a client is on the path toward foreclosure, take the time to show them how it can be avoided. First, remind them of some of the hidden difficulties that will arise if foreclosure occurs.
1. Finding a new home. Don't let your clients believe that it will be better to let the foreclosure happen, because after they lose their home, they will still need to find a new place to live. All too often, the price they will need to pay in rent will be almost as high if not higher than their current mortgage payment.
Remember: The owner of the property needs to make his mortgage payment, too, so he's going to charge a rental payment that's higher than his mortgage costs.
2. Deficiency judgment. It's not uncommon that the sale of the home is insufficient to cover the remainder of the mortgage. When the property has been damaged, or market values have dropped, the owner may end up with a bill in the tens of thousands for the difference.
Despite what many people think, most lending institutions are not anxious to foreclose. It's a last-ditch effort to recover their money and minimize their losses, and it's an incredible hassle. Most lenders would rather avoid it, if possible. There are multiple sources for help that your client should be aware of, and most lenders will be happy to hear that their clients are going to try to keep their home rather than just await a foreclosure.
For the full article please visit New Jersey Real Estate Wire.
If you feel you are heading toward foreclosure
on your New Jersey home, please do not hesitate
to call Perri K. Feldman at 973.650.4727
or email Perri@MidtownDirectHomes.com.
We will get you the help you need
and point you in the right direction.
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