When homeowners in New Jersey are informed that their house is in foreclosure, many of them immediately panic and all realistic thoughts go flying out the window. While the thought of foreclosure is daunting to many, and rightfully so, people who plan ahead may have the chance to halt the process of foreclosure to allow themselves enough time to reassess and recreate a better agreement.
According to the U.S. Department of Housing and Urban Development, there are several helpful programs that struggling homeowners may consider in an effort to stop the process of foreclosure. Some of these include the following:
- Principal Reduction Alternative
- Home Affordable Refinance Program
- Home Affordable Modification Program
- Second Lien Modification Program
As soon as homeowners are informed that their delinquency of payments has put their home in foreclosure, hgtv.com suggests some options they may consider including the following:
- Bankruptcy
- Deed in lieu
- Foreclosure workout
- Lease
- Short-sale
In many cases, homeowners also have the option of contacting their lender. Sometimes, a simple conversation where the homeowner is allowed a chance to explain their situation and ask for an extended period of time to pay their debts may be enough to suspend the foreclosure process. Another option is for homeowners to reassess their debts and create a new payment plan that coordinates with their current needs. Should their situation change in the future to allow them to pay down their home faster, they can always modify their agreement. However, temporarily reassigning payments may allow them to keep their home instead of having to give it up to foreclosure.
