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Special warranty deeds only assure buyers that no encumbrances — that is, unpaid debts against the property — were acquired during the time the lender owned the property. The warranty does nothing to protect you from encumbrances from before the lender took possession. Sometimes, websites make it hard to find REOs — searching for key terms like “sold as-is,” “foreclosure,” or “lender owned” can narrow your search when looking for bank-owned properties. In New Jersey, when a property doesn’t sell at auction, the lender takes possession and tries to sell the property themselves — this is called a real estate owned property.
You can find REOs on the MLS and real estate websites like Zillow or RealtyTrac. To get the inside track, we recommend you establish a working relationship with the REO departments of your local lenders. The process of buying an REO is a lot like buying conventional homes, except you’re buying directly from the bank rather than a person.
Latest Foreclosures in New Jersey
When a borrower fails to repay their debt or file for bankruptcy prior to the date of the foreclosure sale, then an auction is held to sell the property. This is why getting a home during pre-foreclosure is your best chance at finding a good deal. Everyone involved wants to avoid the time-consuming foreclosure process. When everyone’s interests are aligned, that’s where the best deals are found.
HUD homes are the best opportunity for homeowners because HUD prioritizes owner-occupant buyers. Be sure you have a letter of pre-approval before getting started — lenders won’t waste time on buyers they aren’t sure can pay. Lenders usually have very specific guidelines in how they treat REO sales, so follow those instructions closely and don’t expect them to deviate from their process. Conventional financing is usually allowed if the property meets lender requirements for condition and lien status. You can try financing with the lender who owns the REO to see if they’ll give you better terms or more flexibility, but don’t assume this will be an option.
Know Your Rights & Options in a Foreclosure in NJ
All of our foreclosed properties for sale will also include the contact information, number of bedrooms and baths, square footage and price. Can help you learn about home foreclosures with helpful tools, resources and mortgage products that can help make the process of buying a bank foreclosure an easier one. If you’re ready to shop for real estate owned properties for sale, explore the real estate owned listings from Bank of America.
This means any properties worth buying will probably involve a fair amount of competition, making it harder to get a great deal. Our foreclosure specialists can help you determine whether deed-in-lieu of foreclosure is right for you. We’re experts at negotiating with banks and know how important the issue of your property rights is, too. Newfield, NJ foreclosure home listings and Newfield foreclosed homes for sale are some of the best deals you will find.
Find a property in these states
Every county sheriff’s office should have a web page with a list of foreclosure auctions scheduled to take place in your county, but you can also find these advertised in local newspapers. Find pre-foreclosures and bank-owned properties in your area by searching real estate websites like RealtyTrac or Zillow, or have your agent locate them on the MLS. Scroll down to find New Jersey foreclosure listings of foreclosure homes for sale. Our New Jersey homes for sale database will also include listings of bank owned homes, short sales, sheriff sales and pre-foreclosures. All our New Jersey foreclosure listings are pre-screened for accuracy by our team of professionals on a daily basis.
If you are struggling with loan payments, there may be a solution in the form of Loan Modification. This is a process that changes or reorders your mortgage terms to bring them more in line with your current financial situation. When a permanent change occurs to one or more of the terms in your mortgage, it allows you have an opportunity for reinstated loan and resulting payment that is affordable. Your mortgage company may have its own agenda, but we want to help and do everything in our power so that the process goes as smoothly as possible for you!
But, since HUD home mortgages were backed by the government, the government takes possession after foreclosure instead of a bank. New Jersey mortgage foreclosures that don’t sell at auction get repossessed by the bank. Additionally, homeowners have up to 10 days after the auction sale is complete to pay their debt in full and retake possession of their house. As such, you should avoid making any major repairs or renovations until after the the10-day redemption period has ended.
While our goal is to help you stop foreclosure before it starts, we work with homeowners at every phase of foreclosure, even if your home has already sold. The lenders will probably have specific instructions on how to conduct the transaction, so be sure to follow those closely. New Jersey is a judicial state, so the lender must wait 30 days before filing a complaint with the court, and the homeowner has 35 days to respond. If a judge rules in favor of foreclosure, New Jersey law requires the local sheriff to sell the property at auction within 150 days of the house officially being foreclosed on. Foreclosures are real estate owned, REO or bank-owned properties and they have the potential to offer an affordable option to the right buyers. Sometimes lenders will only issue special warranty deeds for REO properties, as opposed to the general warranty deeds that are more common in conventional sales.
No one wants to go through the process of foreclosure, including your mortgage lender. REO lenders have carrying costs, so the longer the property has been on the market, the more likely they'll negotiate with you. REOs probably aren't going to be the cheapest deal because lenders aren’t desperate to offload a property and want to recoup their investment. Your agent can find them on the local MLS, but they’re also found on websites like RealtyTrac, Zillow, and Hubzu.com. New Jersey foreclosures go to public auction before being repossessed by the bank or U.S. government.
Sign up to get full property details including street address, contact information, pricing and nearby comparison sales. You can only submit offers through licensed agents registered in HUD’s system. Work with an experienced agent and attorney to ensure your offer is submitted correctly to be seriously considered. Many of these homes have been neglected or vacant for extended periods of time, so budget for repairs.
If you’re facing foreclosure in New Jersey, there are several alternatives you should explore. We recommend you consult an experienced attorney to protect you against issues with title if you are new to the process. They're usually all-cash purchases only — bring a certified check or money order for the deposit. If the foreclosure deadline is approaching, a fast close makes your offer more appealing.
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