NJ Mortgage Down Payment Help: The Family Gift Option

You’re ready to buy your first home but lack a sufficient down payment. With a stable income and a solid credit score, your lack of a down payment need not prohibit you from purchasing a home. There are several feasible financing options available, including a few you likely haven’t yet considered.

In addition to certain conventional loans, FHA loans and VA loans are programs that offer very low down payment options. It is also a common misconception that most conventional home loans require a down payment of at least 20% of the purchase price of the home. In most cases, you will still be able to purchase a home without the 20% down payment. The caveat with most conventional loans is that you may be expected to pay private mortgage insurance (PMI) to help protect the lender until you have obtained 20% equity in the home.

FHA and VA loans do not require private mortgage insurance and have low down payment options, but have more specific eligibility requirements. If you have parents or relatives who are financially secure and willing to help you with a down payment, consider asking them to gift you the funds. This may be the most convenient option of all. It is relatively simple and efficient to incorporate the family gift option into the processing of your mortgage.

Many different mortgage programs allow for a family gift option in the financing of your home as long as a few basic requirements are met. Conventional loans and FHA loans both typically allow for the family gift option.

Proof of relationship

While the funds gifted to you don’t necessarily have to be from a family member, if they are not from a close relative, you may have to prove that the relationship is a close one in order for the lender to accept the plausibility of them gifting you the funds. Make sure the contributor of your funds understands that they may be liable for a gift tax depending on the amount of funds they are giving away. It is always wise for your donor to obtain legal advice in this situation –  especially when gifting a substantial sum of money. When handled properly, they may actually be able to avoid any tax liability.

Signed proof of gifted funds

The lender will also require a legal document (this letter is customarily provided by the lender) to be signed by both parties that states that you will not be expected to repay your family member for any of the down payment funds gifted to you, and that it is truly a gift and not an interpersonal loan of any kind. This letter helps protect you immensely as a buyer.

Obtain funding from family

Once you have met with your lender and consulted with a NJ real estate lawyer to determine your best options, your donor will need write you a check for the funds to be deposited into your bank account. The mortgage underwriter will then make sure the funds provided by your family member are well-documented and that you can proceed smoothly with the rest of the financing process.

If you are fortunate to have generous family or friends to gift you a down payment, please let them know just how grateful to you are. It may be the most valuable gift you ever receive from a monetary standpoint, as well as a gift that will help to establish your financial security for the rest of your life.


How (and when) to Appeal Your NJ Property Tax

Each year, homeowners in New Jersey are required to pay property taxes, but when the time comes for you to make that payment, you may be in for a shock. If you have an understanding of how your property tax is calculated, you will be able to investigate whether you’re paying too much, depending on the assessment of your home. The good news is that the taxable value of your home may be sky high, but there are steps you can take to decrease that value and save a few bucks on your property tax bill.

Before you can move further along in the appeal process, it’s helpful to know how your property tax is actually calculated. In NJ, there are two aspects of your tax bill: first, the taxable value of your home and second, the tax rate. Normally, the municipal tax assessor will review your home to determine the taxable value. The taxable value is 100% of the home’s “worth” or the amount it would be sold for on the open market. The taxable value will be multiplied by the tax rate to decide the property tax. Unfortunately, local officials set the tax rate, so you don’t have much control over that. You may be able to get the taxable value reduced if you believe it is set too high.

If you’re planning to appeal your property tax, one or more of the following must be true:

  • The tax assessor determined your property tax bill using inaccurate information. For example, the official may have assumed your home is 3,000 square feet when it’s actually only 2,500 square feet.
  • The current market value of your home is lower than what was actually concluded by the assessor.
  • Compared to similar homes in your community, the assessor may have determined the taxable value to be too high. It’s important to know whether or not your home is over-assessed, as some municipalities do not evaluate properties at 100% of the true value. If the assessment on your home is 15% higher than the market value, this would be a case in which an appeal would be acceptable. Before filing an appeal, contact your local assessor if you believe he or she has made a mistake. They will often correct it.

If you’re confused as to exactly what steps to take to appeal your property tax, keep reading!

  1. Request a copy of the card with the details of your house assessment from the local or county tax assessor.
  2. As stated above, know the details of your appeal and be sure that you can provide support. Also, compare your home to similar homes in the community to determine an appropriate taxable value for your home.
  3. Meet with a real estate attorney who has experience with tax appeals. Because each case has its own labyrinth of details, it may be unwise to try to handle it on your own. An attorney will understand the local real estate market and have knowledge of crucial deadlines and regulations specific to NJ.
  4. Collaborate with your attorney to determine whether or not you are going to appeal. Be aware that the appeal must be filed prior to the April 1st deadline. Once the filing is complete, a hearing before County Tax Board will be scheduled. It is crucial to comply with all of the deadlines and regulations to have a successful appeal. If you miss the date of your appearance before the Board, you will have to wait until the following year to refile.

If you submit your appeal, but do not agree with the final decision, you can take your appeal to the New Jersey Tax Court. If you haven’t yet, it would be helpful to hire a lawyer if you decide to take your appeal for further review. The appealing process can be difficult and involves many intricacies. Make sure that you do your research before making any quick decisions!

My NJ Landlord Won’t Fix My Heat: What are my Options?

NJ renters rights

It’s the middle of winter and so cold that your teeth begin to chatter the second you step outside. It’s frigid enough that cold air manages to travel into your apartment, chilling you to the bone. You suddenly realize you can see your breath inside your home. Upon checking, you come to the sinking realization that your heat has stopped working – anyone’s worst nightmares at this time of year.

When you contact your landlord, he refuses to repair your heat. Now what?

According to New Jersey State codes and local ordinances, if your lease mandates that the landlord must provide a specific amount of heat, the landlord must grant it to you. Between October 1 and May 1, a landlord is required to provide enough heat to warm a rental space to 68 degrees from the hours of 6 a.m. to 11 p.m. Between the hours of 11 p.m. to 6 a.m., the apartment must stay at or above 65 degrees.

If you’ve already composed and sent written correspondence to your landlord regarding this issue (keep it professional) with no response, you can take stronger measures. An apartment or rental that is truly uninhabitable simply requires more action.

A few steps you can take include: contacting the local and state building and health inspectors, withholding rent, suing the landlord for the difference between your rent payment(s) and the value of the faulty premises, or you can simply move out. Keep in mind that these are “big stick remedies” and should only be taken if your apartment is completely uninhabitable.

Before you employ one of the aforementioned tactics, make sure a few other conditions are met.

  • Assure that the problem is not just one that annoys you, but actually puts your health and safety at risk.
  • Be sure that you or a guest did not cause the issue, either on purpose or by accident.
  • Follow all procedures according to state rules, such as allowing sufficient time for your landlord to be notified and fix the issue.
  • Make sure that you have no violations or unresolved issues between you and your landlord. You cannot legally withhold rent if you are already behind on payments or are violating any aspect of your lease.

Additionally, be aware that you run the risk of your landlord prematurely terminating your lease, increasing your rent, or evicting you immediately. The potentially for these outcomes depends on the specific wording of your lease and the details of your unique situation. Avoid making rash decisions and be sure to compose yourself before approaching your landlord in person. Handling the situation in the most professional manner will only benefit you in the long run.

If you choose to contact the agency that is in charge of enforcing the local or state housing law, keep in mind that the helpfulness of the inspector can vary. The inspector will typically come and inspect the rental space, and if an issue is found, a notice of violation (with a deadline) will be issued to the landlord. Typically, the deadline to fix the problem is 30 to 60 days.

If your heat stops working, and your landlord won’t fix it, Veitengruber Law can help. It’s important to consult with us as soon as possible so that we can advise you and take action in a timely manner. We don’t want you to continue living in uninhabitable conditions! Please consider the severity of the issue, and if possible, stay with friends of family until the situation has been resolved. Call us today to consult FREE of charge.

Should I Sell my Home in Winter? Tips from a NJ Real Estate Attorney

nj real estate attorney

Do the frigid temperatures and snowy weather turn you off from potentially selling your house during the winter season? Although spring and fall are the most popular times to sell a house, there are always going to be people searching for a new home in every season. With updated technology and on-the-go apps, homeowners are less likely to have difficulty in selling, regardless of the weather. Since there are less homeowners who attempt to sell in the winter, your market competition will sparse and buyers will have less options.

Putting your house on the market during the holidays doesn’t have to spell disaster.

Selling your house during the winter provides its own advantages; all you have to do is show off your cozy abode and create an enjoyable experience for potential buyers. Here are a few ways you can set up a welcoming environment despite the frightful weather that may be brewing outside.

1. Warm and cozy

A cold house will probably lead to a cold first impression for a potential buyer. Play to the buyer’s senses by heating up the house. Not only should the temperature be cranked up, but create an inviting mood. Add a warm touch to each room by adding an area rug in a cheerful hue, draping a blanket over the back of an armchair, or folding a comfy quilt at the end of a bed. Warm tones and a cozy mood will make all the difference in the prospective buyer’s showing experience. A few cookies out on the counter or warm apple cider cooking on the stove may be an invitation for the buyer to stay around and ask questions. If you happen to have a fireplace, be sure to get that fire crackling, as this will add ambience and heat!

2. Let there be light!

It’s perplexing to designers as to why the perfect lighting sets the mood for a house hunter, but it definitely makes a big difference. Areas in the house where the buyer is going to have a first impression, such as the entryway, should have warm, bright lighting. Roll up the blinds, open the shutters, and turn on all of the lights in every room. Because of daylight savings, darkness arrives sooner, and buyers are not going to want to see a dim house. If you do have a darker room, add a spotlight or two to give it some warmth. Winter days can be dreary, but with a warmly lit hearth, you’ll be sure that your house is a beacon of light.

3. The outside appearance matters, too

Yes, the indoor appearance of the house is crucial, but house hunters aren’t only going to be observing what’s on the inside. Begin by clearing all entryways of snow and ice. Make sure each path is clear so that the doors are easily accessible. Though your patio furniture may go into hibernation in the winter, buyers are going to want to see the potential of an outdoor patio or porch. Try adding a spotlight, taking your patio furniture out of hibernation, or placing a fire pit in the yard or on the patio to brighten up the outdoor space.

4. Emphasize specific spaces

If you have areas in your house that are more useful during the winter months such as basement playrooms, indoor exercise spaces, or a heated shed, be sure to bring attention to them. Clear the area of any unrelated items so that the room’s true purpose can be accentuated. Since winter is prime time for hosting parties and other festivities, whet the senses of potential buyers by setting up a holiday display. Decorate as you would to entertain so that guests can see the entertainment potential of a certain space in your home.

Trends in the New Jersey housing market are constantly varying, but as a home seller, it’s important to stay up-to-date on what will appeal to the most potential buyers. Obviously, you want your house to offer a unique look, but not so different that it turns off most buyers. In the winter, it’s easy to let things slide, such as keeping up with the cleaning, making necessary house repairs, etc., but you need to be sure to keep your house clean and inviting – even on the outside. By taking these tips and coming up with a few of your own ideas, you’ll be more likely to sell your house during the coldest time of year.

Applying for and Refinancing a NJ Home Equity Loan


Do you have a brilliant idea for a new house project?

Have you been trying to figure out how to pay for the new roof you’ve needed for a few years?

If you’re nodding your head, a home equity loan (HEL) or a home equity line of credit (HELOC) may be the answer you’re looking for.

A home equity loan can provide you with access to a large amount of money with which you can complete a project with the added benefit of borrowing against the value of your home. A home equity loan is essentially a “second mortgage,” with your first mortgage being the one that you used to purchase your home.

Because this kind of loan is locked in by your house, a home equity loan can be relatively easy to obtain from a bank or lender. The beauty of a home equity loan is that it can provide funds for virtually anything you want, as long as your home is worth more than you owe (in your first mortgage) – and you’ve built up enough equity.

Home Equity Loan Options: Lump-Sum or Line of Credit


A home equity loan as a lump-sum is like any other loan; you attain a large amount of money up front and then pay it back with fixed monthly payments. Your interest rate will be set when you take out the loan. With each monthly payment, the total that you owe on the loan will decrease.

A home equity line of credit works much like a credit card. You’ll be approved for a specific amount of money and then only use what you need. Following approval, you can borrow money in small amounts, but at some point, you’ll need to make larger payments to finish paying off the loan.

Because a home equity loan can offer a fixed and steady repayment schedule, it can be a valuable way to decrease debt or pay for large expenses. If you’re considering completing a home improvement project, a home equity loan could be beneficial, especially since it’s a one-time remodeling project that involves directly investing money back into your house.

Other valid uses for a home equity loan:

  • Paying for a college education (for you or your child)
  • Making a vehicle purchase
  • Eliminating credit card debt
  • Investing in the stock market or real estate

You can also use a home equity loan for any other one-time investment that has value. Additionally, you may want to consider refinancing a home equity loan. If you are looking to decrease your monthly payment or want to lock in a lower interest rate, refinancing would be helpful. In addition, if you want to change from an adjustable rate to a fixed rate or vice versa, you should consider refinancing. While completing the project (or paying for school, etc), you may discover that you need a bit more money than expected, and refinancing could allow you to obtain supplemental funds or potentially extend or shorten your repayment period.

If interest rates have lowered from when you first purchased a home equity loan or if you’ve dramatically improved your credit score, always be sure to check into refinancing. As previously mentioned, if you switch from an adjustable rate to a fixed rate while interest rates are low, you can guarantee that the interest rate will stay that low throughout the rest of the life of your home equity loan.

If you’re considering taking out a home equity loan or refinancing one that you currently have, visit your credit counseling attorney who has your best interests at heart. Here at Veitengruber Law, we can also connect you with trusted lenders with whom we have cultivated valuable professional relationships. From there, you’ll meet with a lending specialist who has experience with refinancing home equity loans.  Refinancing a home equity loan can save you money, provide access to money, and help you reach your financial goals!

What Does the Recent Tax Reform Mean for the NJ Real Estate Market?

It is not a “Happy New Year” for New Jersey residents and prospective homeowners when it comes to the new tax plan that was unveiled at the White House last week. Essentially, a tax increase is the way these homeowners are starting 2018, as the cap on state and local tax deductions is now $10,000. Not only did taxes go up, but the state housing market is also affected.

New Jersey residents pay one of the highest tax rates in the federal government but experience one of the lowest returns of federal spending of any state. At the center of the first federal tax code reform in 31 years is a steep corporate tax cut that proponents of the legislation hope will unleash the nations’ economy. Of course, to make up for dramatic corporate tax cuts, deductions are placed under the microscope. Unfortunately, some of these targeted deductions have been particularly beneficial to New Jersey residents in the past.

If a current or prospective homeowner was paying $10,000 with pre-tax dollars and they’re now paying $14,000, in reality they will have to pay about $5,000 to pay the additional difference of $4,000. Fourteen thousand dollars in real estate taxes doesn’t compare with the top 5 New Jersey towns when it comes to their 2016 Average Residential Tax Bill. The municipality of Tavistock comes in at number one with the 2016 average bill at $31,132.

As a current homeowner, you may wonder how this will affect your property value. The landscape doesn’t look very green. Nobody knows for sure; as real estate markets are affected by more variables than just real estate taxes. The most affected consumer lives in 1 of 7 New Jersey counties that make up the top 10 in the United States. These are the consumers who will lose the most in home prices across the nation.  At the top of the Average House Price Decline list is Essex County which will take a hit of 10.5%.

Some grim scenarios propose that high-income residents would migrate to other states, a slowdown in home sales would affect contractors and home building businesses and stores, and the already high-taxed state would see even higher taxes.

As mentioned before, there are many factors that enter into the real estate market and New Jersey realtors must continue to sell the same way even with the uncertainty created by the new tax plan. With a low-inventory market or, in other words, when there are more buyers than sellers, and when you write off your full real estate tax amount, the real estate market is much more stable. It has been considered a sellers’ market for some time now with sellers getting considerably more than just their asking price in many cases. Eager buyers may now delay making a move from renting to buying or purchasing a bigger home for their growing family. Those who invest in real estate and current landlords will be able to pass along these tax increases to their tenants.

Normally, if the economy holds steady, the real estate market follows suit or self-corrects. Of course, the true impact won’t be known until spring has sprung and the real estate market begins to bloom.

Make an Offer on Your Dream Home or Save for a Down Payment?


You’ve finally found your dream home and you think you’re ready to buy, but unfortunately it’s not as easy as ringing the doorbell and claiming the house. The decision to buy can be the start of a tricky dance between buyer and seller, typically with real estate agents acting as mediators. Your agent will be able to help you with questions you may have on the potentially daunting process of buying a future home, but this guide can help you get started.

When is the “right” time to buy a home?

Deciding on the right time to make an offer on a house can be an intimidating task, especially if the house appears to have all you ever wished for and more. Because a down payment can be an important part of buying a home, you need to be aware of your borrowing capabilities with and without a down payment when making a home purchase.

What is a down payment?

A down payment is a specific portion of the total cost of the house that the lender requires you to submit up front in order to qualify for a mortgage loan. The more money you are able to apply towards the down payment, the lower your interest and monthly mortgage payments will be. It is ideal if you can save up an amount that is at least 20% of the home’s price.

Is a down payment required?

Without question, it’s vital to wait to make an offer until you have a handle on your finances, as it makes the buying process easier. When you make an offer on your dream home, you should know how much house you can afford – meaning you’ve been pre-approved to borrow a set amount of money from a lender. Sellers are inclined to go with buyers who make a solid offer and have proof of exactly how they’ll come through on that offer. Depending on your finance history, credit report, asking price of the home and requirements set out by your lender, you may not be required to make a 20% down payment.

What is earnest money?

Most likely, you will be required to submit an “earnest money” check or money order, which will be held in an escrow account until closing, if the seller accepts your offer. Earnest money is a good faith deposit that the seller requests before they agree to sell their house to you. This deposit shows that you are serious about purchasing the house and that you are most likely financially capable of following through with paying off the house. The earnest money deposit (EMD) is typically listed on the Multiple Listings Sheet (MLS) and is usually submitted with the offer. Because it is possible to lose your EMD, it is recommended not to submit a higher EMD than what the seller lists on the MLS. The EMD can be lost if your contract with the seller is breached without an acceptable reason or if another potential buyer’s offer is accepted over yours.

How can I avoid losing my EMD?


Real estate breach of contract happens all the time – and it’s usually not something that the buyers could have seen coming on their own. Although your real estate agent is an expert in selling homes, it’s possible that they aren’t as versed in real estate law as a NJ real estate attorney. Trust in your real estate agent, but once you have a contract in hand, it is always wise to have it reviewed by your favorite real estate lawyer.

Working with both an experienced real estate agent and a real estate attorney won’t guarantee that you’ll land the home of your dreams, but it will increase your odds. Do you have questions about your real estate contract? Fill out this simple form and have your questions answered by a professional and experienced New Jersey real estate attorney.

How to Legally Sublet an Apartment in New Jersey

When you signed your current lease, you more than likely had every intention of fulfilling that lease, whether it was for 6 months, a year, 2 years, or more. However, as we all know, life is sometimes messy and unpredictable. If life throws you a curve ball you weren’t ready for, (and is anyone ever really prepared for a curve ball?) you may find yourself wanting or needing to break your lease.

Reasons NJ tenants break leases

Your life may have shifted in a good way or surprised you with some unwelcome roadblocks, like:

  • A new job – Perhaps you received a surprise job offer you can’t turn down, but it’s across the country.
  • A job transfer – You may be told that your job location will be moving and unless you acquiesce, you’ll quickly be unemployed.
  • Divorce – Never planned for but all-too-common: if you signed the lease together and then split up, one of you has to move out.
  • Marriage – You’ll potentially need more space or need to relocate.
  • Job loss – Regardless of the reason, finding yourself without an income may mean you can’t afford your rent.
  • Health problems – Your 6th floor walk-up sounded charming when you signed the paperwork (“The stairs will keep me in shape!”). That outlook can quickly change with the diagnosis of a chronic illness or an injury that has created limitations on your mobility.
  • Family issues – (Example): When your 70 year old mother falls and breaks her hip, she may ask you to move in with her until (and if) she regains her mobility.
  • Military duty

What to do if you need to break your New Jersey lease

When and if you find yourself in any of the above or other extenuating circumstances, you’ll need to become extremely familiar with all of the terms of your lease. While you may not have read the terms as closely as you should’ve when you signed, now is the time to learn exactly what your lease states regarding your rights to move out early.

Many leases include a list of acceptable reasons for breaking your lease. If your reason falls under that list – you’ve got it made! However, if you don’t find what you’re looking for in the fine print of your lease documents, all hope is not lost.

If I move out early will I have to pay the remainder of my rent?

Lucky for you, landlords are required to at lease make an attempt to find a new tenant under New Jersey law (Sommer v. Kridel, 378 A.2d 767 (N.J. 1977)). This is true even if you break the lease for an unlawful reason. Landlords are legally held responsible to make an effort to find a new tenant if you have to move out before your lease ends.

To help things along, you can attempt to find someone to take your place as a tenant under your lease. Your landlord doesn’t have to accept your proffered tenant, but is likely to do so as long as they have decent credit and can provide solid references. Any landlord would much rather “sublet” your rental if you have to cut out early than lose thousands of dollars while the apartment sits empty.

Short Sale vs Foreclosure: The Facts

When trying to decide between a short sale and foreclosure, sometimes it’s easier for homeowners to just throw in the towel and let the agent do the work. It is important to seek legal advice from a professional before making a decision, but allowing the bank to have complete control may not be the wisest decision. By becoming more informed about short sale vs. foreclosure, you will be able to make a more confident and educated decision regarding your home.

Process of Foreclosure

A foreclosure occurs when a lender takes ownership of the property and removes the borrower. This occurs when the borrower cannot make the mortgage payments on a consistent basis. Foreclosures can be done through a real estate agent or sold at an auction. The lender can then sell the foreclosed property and collect and recover the unpaid mortgage balance.

This process begins when the lender doesn’t make the mortgage payment for three to six months. The lender will notify the borrower of foreclosure and the reinstatement period, which allows the borrower time to resolve any disputes. The mortgage balance then needs to be paid off within three months, and if not, a notice of sale will be given to the homeowner.

Process of Short Sale

A short sale can be used as an alternative to a foreclosure because it bypasses the extra costs and fees for both parties involved, but it does require a large amount of paperwork. A short sale occurs when the homeowner cannot make mortgage payments and owes more than the current market value of the property. Lenders are often hesitant to accept short sale offers because the proceeds from selling the house often equate to less than the mortgage payment, which is known as a deficiency. Homeowners may still be obligated to pay these deficiencies even after a short sale agreement. The homeowner will put the house on the market and if he or she receives an offer, the bank also needs to approve it. The short sale process can take three to six months to closer. If a homeowner is experiencing hardship such as divorce, unemployment, family death, or job relocation, banks will be more likely to approve a short sale.

Effects on Credit Rating

Unfortunately, foreclosures can cause the borrower’s credit rating to decrease by 200 to 400 points and will remain on the report for seven years. On the other hand, short sale usually only causes a credit rating to fall 50 to 130 points and a credit report will state that the short sale was “settled,” “paid as agreed,” or “paid in less than full.”

Future Homeownership

After a home foreclosure, an individual can buy a house in five years with some restrictions, or in seven years with no restrictions. After a short sale, an individual may be able to buy a home immediately and the lender will not require the loan to be paid back.

Purchasing a Foreclosed or Short Sale Home

Typically, short sales home are better to buy than a foreclosed home because the property has been inhabited. The house and utilities have been maintained, but short sales can take a large amount of time to close. On the other hand, buying a foreclosed house is usually quicker and they are sold at lower prices.

For more info, whether you’re thinking about selling or buying a short sale/foreclosure, visit: https://www.veitengruberlaw.com/Real-Estate-Transactions/


How to Sell Your Home Before Your Lender Forecloses

nj bankruptcy attorney

Many times here on our bankruptcy blog, we describe situations where homeowners want to save their homes. Filing for bankruptcy sets the Automatic Stay into motion, which in turn prevents a home from being foreclosed upon. The length of the bankruptcy case and the anticipated outcome of a discharge of debts allows those homeowners (who desire it) the ability to adjust their debt-to-income ratio enough to keep their home via reaffirmation.

However, sometimes, a financially distressed homeowner doesn’t want to save their home. They may wish to downsize or move into a more affordable geographical location. Foreclosure, then, is not their ideal outcome, because they’ll end up with no money from the sale of the home, their credit scores will drop, and they could end up owing a deficiency judgment.

In these situations, selling the home is the desired outcome.

What’s the problem, then? Just sell the house and get on with things, right? The dilemma arises when homeowners have fallen behind on their mortgage payments and their lender is threatening to foreclose before they have a chance to get the house listed on the market.

If you do not want to keep your current house, but you’re simply short on time due to the immediate threat of foreclosure and sheriff’s sale, you’re in luck. You came to the right place, because we can help gain you enough time to get your property sold to a proper buyer rather than through a foreclosure bidding auction.

Why not just let your home go to foreclosure sale? A sale’s a sale, right?

Actually, no. Very, very much NO. However, many homeowners who’ve found themselves face-to-face with a foreclosure don’t realize they can take action toward an end goal of selling their home even when the home is actively being foreclosed upon. That’s right – this is possible even if you’re behind on your mortgage payments – or not making them at all.

Homes that sell via foreclosure auction or “sheriff’s sale” (find out why it’s called that here) almost always sell for significantly less than their real time market value. That is the #1 reason that you should consider trying to list your home for sale before sheriff’s sale.

For those homeowners who know they cannot continue living and maintaining their current lifestyle (i.e. high mortgage payments and property taxes), the last thing needed is the possibility of a deficiency judgement.

A deficiency judgement isn’t the only reason to avoid foreclosure.

By beating your lender to the punch and selling your home before they have a chance to pull the rug out from under you, you gain the opportunity for a substantially higher sale price. This will guarantee that all of your missed payments, late fees and interest is paid back to your lender, causing a domino effect of good results:

  1. Your foreclosure will be dismissed.
  2. You may end up with some equity in your pocket.
  3. Other dischargeable debts can be eliminated or greatly reduced.

Filing for bankruptcy in New Jersey should be viewed as a valuable tool that can be used to right a financial situation gone awry. The key to getting all of your ducks in a row, however, is working with the right NJ bankruptcy attorney. Timing is everything; don’t delay making a move on what can potentially turn into a disaster. Take action now, and you can walk right into a story with a happy ending.