how to buy a foreclosure in nj

"A lot of people don’t realize [that] foreclosures are heavily regulated and every state has its own set of laws," says Alexis McGee, the president of "If you don’t have the language proper in your contract, or if you have even the font size wrong, it’s criminal and civil damages—don’t count on every Realtor knowing this." As such, McGee advises against relying on a agent for legal advice.
"In today’s uncertain times it’s important to be working with someone who has been through market cycles before," says Patrick McGilvray, president of, which links homeowners and owners of real estate with potential house buyers.
With so many foreclosures on the market, "this is a once-in-a-generation opportunity for many people," says Steve Dexter, a foreclosure expert and author of the forthcoming book Buy and Hold Forever—Building Real Estate Wealth Far Into the 21st Century.
Since many foreclosed homes may decline further in value in the coming months, it’s important that buyers approach the transaction from a long-term perspective." If you are not looking at a piece of foreclosed property from a 10-year time horizon—as an investor or as an owner occupant—then you will likely suffer," McGilvray says.
Only investors with the resources and patience for a long-term real estate investment and homeowners who can afford a fully amortized fixed-rate mortgage should consider buying foreclosed property, McGilvray says.
Many New Jersey properties are bought at public foreclosure auction sales, but the competition may be strong and the prices are higher than during preforeclosure to cover the lender’s legal costs.
A deficiency judgment is available to a lender if a property in foreclosure is sold at a public foreclosure auction sale for less than the loan amount that the underlying mortgage secures.
Because of this, it could take eight (8) months or more from the time a property owner receives a notice of default until the property is sold at a public foreclosure auction sale.
If you wait until the public foreclosure auction sale – or afterwards – the competition may be stronger and the prices will be higher to cover the lender’s legal costs.
To find these sales, read newspaper notices prior to the auction date, look for public notice posted – when required – on the property, or search other public places in the county where the real estate is located.
By law, foreclosure auction sale must be announced publicly and held at the date, time and place required by state statutes.
Of course it became obvious after the sale (when the plumbing was in use) and I’ve had scores of irate homeowners calling us with the estimated costs to correct these problems…at which point there is nothing I can say but that the home passed inspection (by their inspector) and that the house was sold in "as is" condition.
There was an issue with a oil tank needed to be removed, but my realtor said that the prospective buyers before me demanded that the bank remove it on their dime, but they refused.
Find a Real Estate Agent in your area that can help you with the purchase of a foreclosure or any other property you’re interested in buying.
In order to redeem the property, the foreclosed homeowners must pay the full amount of the judgment, plus interest, costs, and all reasonable expenses that you paid after the sale for taxes, assessments, other prior liens, and necessary repairs (N.J. Stat.
In addition, if the lender obtains a deficiency judgment (which is a personal judgment against the homeowner for the difference between the foreclosure sale price and the total debt) in a separate lawsuit after the foreclosure, the homeowner can redeem the home within six months after the judgment is entered (N.J. Stat.
My main concern is that the owners might be able to catch up on their past-due mortgage payments and take the house away from me even after the foreclosure sale.
They would have to repurchase (or "redeem") the home, by paying the full amount of the foreclosure judgment, plus various other charges, within a certain period of time.’s Foreclosures for Sale helps you find these foreclosed properties in New Jersey so you can compare all of your options to get the best deal possible.
You can find the best deals on foreclosed homes in New Jersey on because sellers are motivated to sell these properties quickly.’s Foreclosures section is packed with all the listings and information you need to make your important foreclosure decision. offers a wide variety of listings and information to help you buy foreclosed properties.
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Rather than obtain separate mortgages to finance the purchase and rehabilitation of a home, the 203 (k) program offers buyers the opportunity to obtain a single mortgage from a Federal Housing Administration (FHA)-approved lender to finance the purchase and subsequent improvements that may need to be made to occupy the residence.
Buyers interested in purchasing a short sale or foreclosed property are advised to work with a REALTOR® who will help in the step-by-step process.
Early this year, banking and real-estate analysts concluded that New Jersey had achieved a dubious distinction, passing Florida to become the state with the highest percentage of foreclosure among mortgaged homes, 6.2 percent as calculated by CoreLogic, a leader in real-estate analytics.
It's all here, with a full explanation of how to purchase a foreclosed home without screwing it up, in California, Texas, Florida, Pennsylvania/PA, New Jersey/NJ, New York/NY, Illinois, Michigan, Georgia/GA, Maryland, Canada or anywhere else in the world, the difference between judicial and non-judicial foreclosures, your salvation rights, how to find these properties in the newspaper, MLS, county records, through an agent, listing services, REO's or government owned homes, the stages of foreclosure, pre-foreclosure, auctions, REO, bank or government owned properties, how to buy a property during these periods, how to hunt for them, reconfirm there status, evaluating there worth, partnering with the owner, price negotiating, getting a helping hand and the final step, how to buy them through an auction, good credit or bad credit, deciding on your budget, estimating the value of the property, preparing for auction day and winning the bid, covering the basics, making an offer, closing the deal, short sales, your advantages, doing your homework and how to profit, statistics, risks involved and much, much, MUCH more.
Population density can also create high prices for housing, so those home buyers in New Jersey considering foreclosed, government repossessed homes, tax liens and owner-financing options can find great advantages to get more for their money.
Further downstate, you can become a homeowner near the broad beaches of the Jersey Shore when you choose a hidden gem among the 5,000 homes listed in Ocean County NJ, including many foreclosed, and rent-to-own homes at discounted prices.
Browse through Bergen County NJ 1,400 foreclosure listings, including FNME Fannie Mae/Freddie Mac government repossessed homes for sale and REO foreclosure sales of single family homes and condos.
In New Jersey’s Bergen County, you can find terrific bargains on homes with easy access to New York City.
Realtors have a place on the listing to identify the short sale properties because they must note that the offer is "subject to 3rd party approval " meaning the mortgage lender must also approve the sale price.
If your offer is accepted by the bank, the sale is pretty much like any other and should go smoothly past that point but don't expect to ask for any repairs to be done if something comes up during inspection unless it is something which would need to be repaired by the bank if they foreclosed the property and needed to sell it on their own.
Almost always the mortgage lender requires that a owner list their property for sale with a Realtor before they will consider a short sale arrangement.
I could go on and on, but I hope you will work with a good Realtor who will help you through all the ups and downs of these short sale property sales.
Short sale homes are sold "as is" but at least you are allowed to conduct inspections to determine whether or not to proceed with the purchase if yours is the selected offer.
Either way, has what you are looking for from HUD homes New Jersey to New Jersey foreclosures we can help you find what you want. makes it easy with free New Jersey foreclosure listings.
We have teamed up with them to help you get into the New Jersey foreclosure of your choice.
If you do not feel comfortable calling them send them an email with what you are looking for in a foreclosure and they will be able to point you in the right direction.
Start searching homes by choosing an area in New Jersey from the list below.
Foreclosure in New Jersey is judicial, which means it works through the courts, and borrowers have a 10-day grace period to redeem the property if they can pay all back mortgage payments, taxes, fees, and penalties.
New Jersey has surpassed Florida in having the highest share of residential mortgages that are seriously delinquent or in foreclosure, with New York third, a Mortgage Bankers Association report showed last week.
Lenders in New Jersey are pushing cases through more quickly and it now takes about two months to process final judgments against delinquent homeowners, compared with a backup of nine months a few years ago, said Kevin Wolfe, assistant director of the Civil Practice Division in the Administrative Office of the Courts.
Almost 10,000 cases in New Jersey headed to a sheriff sale in 2013, 47 percent more than the year before and the highest level since 2009, according to the New Jersey Administrative Office of the courts.
The difference in New York and New Jersey stems partly from a foreclosure process that requires court approval before lenders can seize homes.
The epicenter of the U.S. foreclosure crisis is shifting to New Jersey and New York, threatening a housing rebound in one of the country’s most densely populated areas.
Compiled from over 650 MLS listing services, as well as other foreclosure data sources, our extensive database of New Jersey foreclosure properties for sale includes pre-foreclosure homes, defaulted properties, short-sales, foreclosure auctions, and more.
Search for homes due to be sold in foreclosure auctions, REO (real estate owned) homes in New Jersey, as well as bank-owned properties for sale.
New on Our Blog Mortgage Rates Are at the Lowest Level of the Year Shashank Shekhar Despite contrary predictions, mortgage rates are at the lowest levels seen in 2014, meaning this could be a great time to refinance or purchase a new home.
While buying a foreclosed home may seem like the best way to get a real deal on your new home, “Foreclosures are more of an investment vehicle than a way to get the home of your dreams,” according to Ryan Slack, CEO of Property Research Partners.
A real estate agent who is knowledgeable about the foreclosure process can provide valuable tips and may be your best advocate during a pre-foreclosure purchase.
While the process is lengthier than the traditional real estate purchase transaction, and fraught with delays and problems, you may still get a decent discount on price.
Offers to purchase foreclosed homes are generally countered by the lender and usually for price, but there may be other terms of the purchase agreement that the lender takes issue with.
While this part of a traditional real estate transaction is usually completed within a week, with the lender as the seller it has the potential to drag on for a lengthy period.
Buying directly from the lender is the safest way for the average homebuyer to purchase a foreclosure.
What about the average consumer in the market for a home to live in who just wants a deal? Many of these non-investor type buyers hear the wild tales of deeply discounted foreclosed homes and want in on the action.
If no bids match or exceed the opening bid, the trustee purchases the property, in the lender’s name, and it becomes what is known as Real Estate Owned, or REO.
Pre-foreclosure sales are popular with professional real estate investors, as they offer huge discounts off the home’s market value.
This auction is another situation where the average homebuyer will be competing against seasoned real estate investors with deep pockets.
After the reinstatement period, if the homeowner fails to bring the loan current, the lender will sell the house at auction.

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