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When faced with a possible foreclosure, there are certain things you should and should not do so your situation does not become worse than it needs to be. Learn the specifics of the most updated New Jersey foreclosure laws, as well as federal homeowner protection laws that are in place to help you keep your home or delay the process, so you have time to learn what your options are.

Here are four ways to avoid a mistake during the process.

  1. Do not ignore calls or letters from your mortgage provider: It is better to contact the company as soon as you know you will be late on payments. Many lenders will help you work out another solution that works for your new financial situation if possible.
  2. Do not wait until the last minute to save your home: There is federal law in place which does not allow lenders to begin foreclosure until payments are 120 days delinquent. However, the sooner you act to save your home, the more options may be available to you, including financial aid.
  3. Do not move out early: Staying in your home throughout the foreclosure process allows you to live somewhere for free, technically. As well, if you are attempting to save your home, many assistance programs require you to be living in the house.
  4. Do not pay a foreclosure rescue company: There are “rescue” companies that may ask you for large fees to help you save your home. They may also tell you to pay your mortgage payments to them instead of your mortgage provider. Do not do this, as they may take your money without doing anything to stop the foreclosure.

It is beneficial to become familiar with the New Jersey Fair Foreclosure Act so you can understand the process your lender must go through in the foreclosure process, and any steps you should take. The state requires the lender to send you a notice one month before it begins proceedings. In this notice, the lender must include information about financial assistance that may be available to you to prevent foreclosure.