Oliver & Legg
Call today for a free consultation
Local 732-988-1500


Are there alternatives to foreclosure?

Foreclosure is a scary prospect for homeowners in New Jersey who can no longer afford their mortgage payments. However, there are alternatives that can help mitigate the damage. Realtor.com explains what you can do if your home is at risk.

Short sale

If you can prove financial hardship, a short sale might be the right option for you. This involves selling your home for less than what’s left on the mortgage, which requires the lender’s approval. If so, the home will be sold, and any remaining debt will be discharged. Short sales take a bit longer than a standard home sale and you’ll need to work with a broker with knowledge of the short sale process. To qualify for a short sale, you’ll need to provide documentation establishing financial hardship.

Deed in lieu of foreclosure

You can also surrender the home to the lender via deed in lieu of foreclosure. Depending on the value of the home, the lender may agree to forgive remaining debt to avoid a protracted foreclosure process. However, the lender may request that you repay a portion of the loan if you still owe quite a bit of money compared to the value of the home. Along with establishing financial hardship, you’ll also need to attempt to sell the home for at lease 90 days.

Standard sale

If you’re still making mortgage payments but anticipate future issues, the best solution is to sell your home in a standard sale. This prevents your credit from being negatively affected by foreclosure, although you’ll still end up losing your home. You also may need to decrease your asking price to ensure a sale, which means you’ll still be responsible for the remaining mortgage payments. Another option is renting the home, which would provide a steady income that could be used for mortgage payments. However, you would need to secure alternative housing in this case.

No Comments

Leave a comment
Comment Information

Get A Free Lawyer Consultation

With offices in Toms River and Neptune, attorney William H. Oliver is ready to answer your questions and help you find the right debt relief solution. Evening and Saturday appointments are available. Call local: 732-988-1500 or fill out our contact form.

Email Us For a Response

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Toms River Office
609 Main Street
Toms River, NJ 08753

Fax: 732-775-7404
Toms River Law Office Map

Neptune Office
2240 State Route 33
Suite 112
Neptune, NJ 07753

Phone: 732-341-1550
Fax: 732-775-7404
Neptune Law Office Map

visa, master card, american express, discover network