FORECLOSURE HOUSES FOR SALE IN NEW JERSEY
What is a Foreclosure Home?
Foreclosure occurs to a property when a borrower falls behind on their mortgage and the lender or mortgage investor must repossess the home. It may also happen when the homeowner fails to pay their property taxes or homeowners association fees.
So, basically, if a situation like this takes place, it is the right of the mortgage holder or third party lien holder legally, to get the ownership of that property. This can be a stressful situation for a homeowner but not completely impossible to unravel.
At YZE we offer you the maximum price for your home.
Consequences of Foreclosure
- Credit score consequences
Once a home is lost to foreclosure, the owner’s credit score would be affected considerably. According to FICO, for borrowers with a good credit score, a foreclosure can drop your score by 100 points or more.
However, if someone maintains an excellent credit score, a foreclosure could reduce the score by as much as 160 points. In other words, the higher credit scores the more impact a foreclosure will have.
Usually, it takes years of on-time payments to restore the credit score. If the foreclosure is an isolated event and the borrower’s credit is otherwise sound, consumers may be able to recover more quickly. However, it can take anywhere from three to seven years to fully recuperate.
Often, a low credit score due to a foreclosure can lead to expensive interest rates and limited credit, making the financial recovery more complicated.
A foreclosure on your credit report will obviously lower your credit score, making it difficult to get new loans. When financial institutions are deciding if they should lend you money, they evaluate whether or not you’ll be able to pay them back.
Also, it can even make it more difficult to find a job or a rental property since many employers and landlords use credit reports as one way to assess your reliability.
Nevertheless, your foreclosure will disappear from your report after seven years. After that, you can rebuild your credit by working on your debt and paying your bills on time.
A foreclosure brings about a property title transfer and subsequent tax assessment with it. But what most owners do not realize is that while losing a home foreclosure, there is likely going to be tax implications.
Many people are unaware that if a debt they owe is canceled, the IRS considers it income for tax purposes. When a mortgage is taken from a bank or lender, it usually involves granting the fund with an assurance to return the amount back to the bank or lender. As the owner begins to repay the amount, this money is not claimed as income on their tax return.
If, however, the debt is not repaid or forgiven, it will have to be included as income for tax purposes. The loan amount is considered income because there is no longer an obligation to repay the lender for the same.
The only occasion where such income is not taxable is when debts are discharged through bankruptcy. Consulting a tax professional to advise in these specific situations is always the wisest & safest option.
Typically, mortgage companies will not approve loans for borrowers who have been through foreclosure in the past 5 to 7 . It is common, following a foreclosure, for the borrower to seek a future mortgage. While it might take some time and effort, it is certainly not impossible to purchase a home following a foreclosure. To qualify for a future mortgage loan, most lenders will require a credit score above 620. Most lenders will also require a waiting period before they would consider a loan application. The minimum waiting period after a foreclosure is 5-7 years. However, this time period can change depending on the situation of the foreclosure after extenuating circumstances, or after deed-in-lieu of foreclosure, etc.
How can Yze Group help a homeowner facing potential foreclosure?
While facing potential foreclosure, the owner might go through one of the most difficult phases in their life, however, we are not going to take advantage of your situation. At YZE, we understand that every homeowner has different challenges and selling a property can be daunting emotionally as well.
Taking action quickly will allow the homeowner to use all available resources to fix the issue. Equity is a treasure that needs to be preserved. The bank legal fees and foreclosure-related fees can slowly take over your equity, leaving you with more debt and fewer options to solve the issue.
We will analyze the case and provide a customized solution for any client who decides to sell their home and save their credit.
- We are going to listen to the homeowner’s story, to make sure we can translate the needs and priorities into numbers.
- If there is enough equity, we are going to provide some liquidity so the homeowner can continue with their life.
- In some cases, we can assist the homeowner by paying the ordinary closing costs associated with selling a home.
- If for some reason we are unable to help you, we would definitely refer our client to a professional that meets our standards
As a client, you can trust us with:
- Complete Professionalism
- Outmost Diligence.
- Experience and Skills
Follow these simple steps to sell your foreclosure home to us:
STEP 1
Fill out a form and schedule initial call
STEP 2
Schedule a visit to assess home value
STEP3
Review and accept offer
Step 4
Sign purchase agreement contract
Step 5
Receive a check from the sale
