Often times someone is unable to pay their mortgage payments due to a various number of reasons. This may be preceded by the lender foreclosing on the property. This article will look at the said foreclosure process.
So what is a Foreclosure Process in Edison, NJ?
A foreclosure process allows a lender or bank to recoup the amount that is owed to them on a delinquent loan by the process of selling or taking ownership (repossession) of the property that is securing the loan. The foreclosure process here in Edison, NJ begins when a borrower or owner defaults on their loan payments and the lender files a default notice on public record, this is called a notice of default.
The foreclosure process can hopefully conclude one of four ways: The receiver or owner can have the loan reinstated by paying off the default amount that is owed during a grace period determined.
This grace period will be determined by the state laws in which the loan was taken out in. This grace period is also known as a pre-foreclosure period.
The borrower can also sell the property to another party during this pre-foreclosure or grace period. The sale of the property in question will allow the borrower/owner to pay off their loan and thus avoid the foreclosure process to proceed any further. By avoiding foreclosure this will help to eliminate bad strikes on his or her credit history.
Another way to avoid the foreclosure process is if a third party buys the property at a public auction at the end of the pre-foreclosure period. This however might affect your credit rating and should be avoided if at all possible.
The final way that a property foreclosure process in Edison, NJ can be resolved, and it is the one that neither party wants to happen, but is often the only way to resolves the issue. That process is when the lender takes ownership of the property, usually with the intent to re-sell it in a private bid or auction process. You may also find these foreclosure properties in Edison, NJ on the open market. The lender can take ownership either through an agreement with the borrower during a pre-foreclosure or by buying back the property at the public auction.
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