Tips for Avoiding Foreclosure in New Jersey

You are a New Jersey homeowner who has missed a mortgage payment. Now what? Should you just give up on your home?

No. You can try to save it. Depending on how much money you have, there are many options available to help you keep your home. There are programs that can help you get a loan modification and other programs that can pay off your mortgage for you in full if it is too late for a modification.

The first course of action is to try to find a way to pay your mortgage in the pre-foreclosure stage.

Pre-Foreclosure Stage

The pre-foreclosure process varies depending on the state, lender, and property. In some states, homeowners have to stop making mortgage payments in order to qualify for short sales. Other states allow homeowners to make reduced payments with permission from their lenders during this time – an arrangement called a “trial period plan” (TPP). If a lender allows the homeowner to make a reduced payment, then it is generally based on the amount needed to cover property taxes and insurance. Short sales allow homeowners to remain in their homes as tenants until their credit improves.

During the pre-foreclosure stage in New Jersey, the house can be sold through the short sale (REO) or regular sale. Once the home passes through the pre-foreclosure stage and is in foreclosure, it can be purchased at a low price through an REO auction or government foreclosure auction.

When lenders initiate the foreclosure process in New Jersey, they will schedule an auction date. If the home doesn’t sell at auction or if an offer isn’t accepted, then lenders can take possession of the home on the foreclosure date by physical or legal means. A lender can also choose not to take possession of a home through foreclosure.

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Pre-Foreclosure Timeline in New Jersey


The most certain method of preventing foreclosure is paying your mortgage as soon as you enter the 15-day grace period, which starts immediately after you miss your first mortgage payment. Preventing foreclosure is still possible even if you move on to default or the 30-day payment arrangement. After this, your loan will be in foreclosure and you will need to seek other options.

COVID-19 Provisions

Due to COVID-19, new allowances are available for homeowners affected by the pandemic. Please see our COVID-19 Foreclosure resource for more information on new federal guidelines on foreclosures and which COVID-19 foreclosure options are available to you in NJ.

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