CHAPTER 3 of “Stop Foreclosure Secrets” Workout

If you’ve determined that your financial hardship is temporary, then a workout with the mortgage bank is a valid option to stop foreclosure and avoid it.

The bank would also entertain it because it’s really all about the money.

The good news to you is that the bank is always going to be on your side to keep and save your property.

But I am also sure that you understand that they are not just being charitable.

They want the money.

So as long as you have a plan to pay what you owe and catch up on late monthly payments, they will always lend you their listening ears.

All you have to do is ask and you can stop foreclosure on your home; you can avoid foreclosure all day.

If you don’t have means of coming up with arrears that you owe, workout plans will not be entertained by your lien holder or your mortgage bank.

It simply makes no business sense for them to allow you to keep your home.

A prospect called me one time from East Orange New Jersey.

She had been taking very good care of the house for 15 years but was also about to lose the house.

She had not made a single payment in about 3 years.

Somehow she concluded she could and wanted to save her home.

She thought it was her right since she had being babysitting the house for 15 years.

But there was a big issue with that mindset.

The longest she had kept a job in the 5 year prior to that was about 3 weeks.

She was feeling entitled and being very illogical about her rights to pay bills in America; misplaced rights if you will.

I don’t mean to be condescending when I say this.

In America, adults typically have to create some kind of regular income indefinitely until we die.

About 25% – 30% of the reason for that income is to keep a roof of your head at least; if not for your whole family.

But I feel sometimes, I may come of as being condescending.

The reason is because I don’t have the ability to comprehend or reason with a person who has not had an income for whatever reason, paid rent or some type of fees for housing but expects to live rent free; especially in America.

After working with clients over the years, I have now learned that a home is a highly emotional accomplishment and property for a homeowner; especially if they live there.

So I understand that a homeowner may not be in their most logical thinking ability zone when it comes to their home.

So this lady called me because she heard that I could apparently make a miracle happen.

The fact is that I can’t.

The whole mortgage system operates on the cash flow that’s created for the banking industry from your monthly mortgage payments.

So there are typically 2 conditions to being able to save a home with workout plans from the bank to stop and avoid foreclosure:

  1. Ability to pay what’s owed in arrears, late payments and fees.
  2. Proof of ability to continue regular monthly payment as planned

It’s easy to get the bank to help bring the loan back current if the term of the original mortgage loan is not being changed.

Remember they are typically in it for 30 years period.

2 or 3 late payments is not a big deal as long it’s paid with late fees.

Being late for no matter how long is not a big deal at all as long as you can catch up before an official sheriff auction foreclosure sale.

So it’s ultimately about your ability to catch up on all late payments, late fees and proof that you can continue to stay current i.e a job.

There are 3 different options that you can find in a typical workout plan or a combination of any or all of them in any format:

  • Reinstatement – So the longer you are late, the more arrears you accrue.  With this option, the bank will agree to accept all the late payments and late fees by a specific date as a condition to reinstate your mortgage standing to normal and stop all foreclosure processes.
  • Forbearance – Sometimes, the bank can see your effort to secure a new or adequate income in the future.  Forbearance allows them to lower your monthly payment temporarily for a while to be revisited after expiration of the forbearance agreement.
  • Repayment plan – This involves spreading your late payment and fees with your regular payments until you are all caught up.

As you can see, anything is possible provided that you can prove that the cause of your financial hardship is temporary.

The bank only cares about one thing and one thing only.

It’s all about the Benjamins.

There are 2 other options that you can use to avoid foreclosure.

They are typically very difficult because it involves altering the terms of the original mortgage loan agreement.

However it’s possible if you can present a good case.

  • Loan Mortgage modification – The mortgage bank does not mind flexibility in helping you stay or come current on original terms.  Terms such as interest rate, number of years of amortization, forgiving missed payment or principal balance on your loan can be adjusted to help you.  I will cover this in details in other parts of the book.
  • Claim Advance – This comes with insured loans where you may qualify to change the loan to interest only loan for a long time.  It’s possible but I’ve personally never seen this happen before.   If you have to use this option, there are high chances that you should be selling the property.

Ultimately, these workout plans should be explored once you determine that you have income to proof that hardship was temporary.

The bank wants that money.

But I have to warn you.

Sometimes, the hardship wasn’t just the income or not the income at all.

You may be stuck with a property that’s simply underwater and unprofitable to own if you had a good income.

In that case, it’s best to let go of the property and start fresh.

The only thing better than owning a home is owning a home fresh with peace of mind profitably.

CHAPTER 2 of “Stop Foreclosure Secrets” How to Stop Foreclosure in New Jersey in 7 Steps

It’s time to decide whether you want to sell or keep your property.  

This is a decision that you really can’t avoid.  

What do you want to do?

It’s not my job to tell you what to do but to share your options and the ups and downsides to each option.

Speaking of options, you’ve got only 3 options within the scope of this chapter.

  1. Cut your losses and move on earlier to greater financial future.
  2. Nurse the wound a lot longer and mess up the credit a little further.
  3. Create a new income and money source, pay all the past due and stop the foreclosure process today.

The third option would be a dream come true.

It would be a miracle.

I will give you my best shot on how to increase your chances. However if miracles happen like that, everyone would be using it.

It’s called miracle because it doesn’t happen everyday.

If you could make such miracle happen, you wouldn’t have found this book.

So I’m gonna go ahead and assume that you are left with the first 2 options.

So we are back to a decision to sell and get rid of the liability or try to save the property.

Let’s talk about saving the property first.

You see it comes down to the money as always.

The bank or lien holder that you owe money to will only allow you to keep the collateral if it makes financial sense to them.

Believe me,it’s a possibility but the chances are very slim.

For example…

If you live in an undesirable neighborhood, abandoning the property creates more downside and additional loss for the bank.

The collateral gets exposed to neighborhood human rats who can break in, steal all fixtures and leave major damages.

That simple scenario right there means losing more money for the bank but not so much for you.

You probably already lost money and your credit ratings.

This hardship explanation in addition with a plan to catch up with payment can help the bank deem it more profitable to help you save the property.

However saving a property is not always your best financial option.

At this moment, I want you to take a minute to write down your own version of how you got into the mess in the first place.

If the reason why you got into the mess is still in existence like most people, then saving the property becomes a temporary fix.

When the trouble does resurface again, it usually shows up with more intensity.

This has caused a lot of family homelessness and pain.

Pain and suffering is usually a result of not acknowledging and facing reality early enough.

You story may be different but I’ve consulted with so many people that I know it probably is not that different.

It’s that old saying again that…

“You can avoid reality but you can’t avoid the consequences of avoiding reality.” ~ Ayn Rand

Here is the good news.

The reality may not be as bad as you think.

But the consequences of avoiding it will be a lot more painful.

So I am not saying that you shouldn’t try to save the property.

I am saying that you should make sure that in the grand scheme of things, it’s the best financial option for you.

For most people that are 3-6 months or more late on payments, it’s not the best option especially from a future financial health standpoint.

Saving the property tends to be a form of digging a deeper hole.

There is a saying…

“When you find yourself in a hole, the first thing to do is to stop digging.”

Typically, people would go borrow money to pay the lien holder.

However that creates a new obligation.

It’s even worse when you start borrowing money from family and friends.

They can be your worst enemy after “HELPING YOU OUT”.

This kind of things creates a very stressful lifestyle and you do not have to experience it if you understand how money works.

It’s never a good idea to borrow money to pay off another debt.

It just gets worse.

Let me tell you my story…

There was a time that I struggled financially and I became very desperate.

The state of being desperate is not a place you ever want to be.

People tend to make very poor financial decisions in that state and that’s what I did.

It was tough in my business and the very first best thing I could have done is to find a short term solution to cash flow.

I was too stubborn with focus on my primary business so I came up with an idea to borrow a personal loan $10,000 from a family member to catch up; Bad idea!

This person was very nice to help me and my family out but please hear me out.

This very wrong decision came with an everlasting price that at press time I am still paying.

The individual is connected to me through another very close family member.

Honestly it took me way longer than I would like to pay the money back.

And when I paid back, I had to borrow from another friend of mine to pay the loan.

In spite of the fact that I paid the money back with a $1,500 interest which is essentially 15%, the downside to getting involved in this personal loan was greater than the pain I was avoiding at the time.

Anyway I paid back.

As it comes in everyone’s life, I had disagreement among a few family members.

This particular person/lender was at the very core center of a continual and viral instigation of a negative emotional roller coaster that rocked my family for a long time and almost destroyed it.

I don’t know if it is true but my true feelings was that this person thought they were licensed to be disrespectful to me and the well being of my family.

So I called the person out of the BS.

I didn’t stop there.

I called this person outside of their name.

I was very upset and it became very nasty.

One of the issues that came up was that I had no right to demand respect because I took a personal loan of $10,000 from this person in the past; a loan that was already paid back.

To cut the long story short, that person has chosen to not talk to me anymore.  That’s fine as I can respect that personal choice.

However, it’s a little sad when a person claim to love your family and kids but they are also willing to sacrifice everything because of a disagreement.

I’ve actually taken a higher road and apologized multiple time.

However, that person has tried to passive aggressively turn my other family and friends against me.

What’s the moral of the story?

Borrowing money from family and friends to launch a business is okay as long as they understand they are making a personal choice to believe in you and your business idea.

Borrowing to pay other loans back without a clear path to income generation can create a massive viral disrespect.

I have tons of stories like this one and by all means, you must not engage in creating another one.

Let’s talk about the option of selling.

Selling the property is always a choice.

That’s where an investor like me can step in and take the property from you at fair market value.

For most people, you are better off selling this property at this point.

If you deem your chances of paying what you owe being very likely, you can always issue a statement of good faith.

They you can execute on putting the funds together and then pay the bank or the lien holder the due balance to bringing things current.

If you don’t see raising the funds happening, your best chances to a better financial future is to sell the property at fair market value.

Consider your immediate need to off load this piece of liability.  To do that is very simple.  Just give me a call.

I am a local investor here in New Jersey and I buy all the time.

Even if you don’t have any equity, I have solutions for that.

My name is OLA and you can reach by text or a phone call at: 

73 TWO-309-3 EIGHT 34.

Be sure to leave some type of message if I couldn’t pick up your call and I’ll get back within 24 business hours.

I also facilitate how you can best move forward into a better financial future with unique income and business opportunities.

7 Steps to Stopping Foreclosure, Saving Your Property and Stopping Further Credit Damage

  • STEP 1 – Realize that cash flow is king.  You need it and the bank needs it.  That means if you don’t have a consistent income presently, you cannot keep the property.  Remember, that also means that your bank, mortgagee or lien holder will not get cash flow from your asset as well.
  • STEP 2 – Write down 5 different ways to come up with the balance you owe at the moment.
  • STEP 3 – If any of these ways involves borrowing or loan of any type, write 5 ways with a plan to pay back the loan.
  • STEP 4 – Narrow down to the best 3 ways to come up with the balance and rate each according to best chances of getting the money.
  • STEP 5 – Execute on the hardest money source first until you get all the money you can get.
  • STEP 6 – Call your bank, mortgagee or lien holder and ask them for a loan modification.  The loan modification at the banks vary from bank to bank.  Follow their protocol religiously.  Don’t lead by telling them how much you have raised.
  • STEP 7 – Get to work on your plans to maintain cash flow in your household, property and the plan to pay any loans back ASAP.

CHAPTER 1 of “Stop Foreclosure Secrets” Foreclosure Process in NJ

In this video, you will discover foreclosure process in NJ, the timeline and what the New Jersey fair foreclosure act means in your chances to stop foreclosure successfully,

7 Stages Foreclosure Process in NJ (300 Days)

The number of days I will be sharing with you in this chapter can vary slightly or significantly depending on many factors…

…such as your local state, county, holidays, your mortgagee, bankruptcy laws, recession etc.

However, they are estimated number of days in between the foreclosure process stages in regular New Jersey Real Estate market condition.

In a regular market condition, it takes about 250 – 300 days from the day of default to actually lose a property to sheriff auction sale.

My goal as always is to refrain from using big legal words and languages.

I will use simple English to describe each stage. If you want, you can read more complicated languages at the state website.

Let me help you.

STAGE 1 of Foreclosure Process in NJ – Default – Day 0

mortgage payments foreclosure process stage 1This stage marks the first time you missed a due mortgage payment. It’s called a default.

The banks know that this will happen a lot more often than none. At this stage, there is typically no credit reporting.

It’s just a matter of you catching up with your mortgage payments.

At this stage, you should determine if the cause of the default is temporary or permanent.

However it can be confusing or cloudy.

Most people that get a hold of this book are well beyond this stage.

For example, if you lost your job or income where you are not sure how soon you can secure a new income source, you may find it hard to determine if it’s permanent or temporary.

In that case, keep a journal and write down your thoughts and a goal.

Try writing down a plan to get out of default if you can because that’s really what this is all about.

It’s all about the Benjamins.

It’s important to write things down because your emotions are definitely going to be engaged.

Writing your thoughts down will help suppress the negative effect of the emotions while creating a solution to exit the foreclosure process.

STAGE 2 – Notice of Intention (NOi – Lis Pendens) – 90 Days

At this stage in the foreclosure process, the attorney for your mortgage company (the mortgagee) files a lis pendens a.k.a pending lawsuit against you.

When a lis pendens is filed, you are now officially in pre-foreclosure.

Your emotions are a lot more engaged especially if you have not taken the time to create a plan to exit default of the lien.

You get this crazy legal letter from the court and you probably didn’t take the time to read it.

I know; it’s a scary thing.

It feels like trouble.

It feels like an eviction from the property is about to happen in 7 days.

Good news is that no eviction is going to happen for probably another 200 plus days and that’s only if you do not take action.

By the way, it’s now public record that you are facing foreclosure.

In fact, that’s probably why you gained access to this book.

But it’s not too late as of yet.

However, you need to do the same thing I suggested during default stage of the process to increase your chances to stop foreclosure effectively.

Continue the journal you created or create it if you haven’t. Write down your thoughts and a goal.

Example: “My goal is to catch up on my mortgage payment in _______ days.”

At this stage, you must create a plan; it’s no more an option.

By the time you receive the legal letter (lis pendens), you probably have less than 200 days to eviction from your property.

You cannot afford to drag creating a plan any more.

Write down 5 different ways to come up with the amount your need to bring your mortgage current.

The key here is to actually grab a pen and write it out.

Remember that writing your thoughts, goal and plan down will help suppress the negative effect of the emotions on handling the foreclosure.

STAGE 3 of Foreclosure Process in NJ- Foreclosure Complaint (Superior Court) – 120 Days

Another 30 days has evaporated into blank space.

Up until this stage, the courts and the county foreclosure unit were barely involved if at all.

Well, they are involved now and you will receive an official notification indicating the servicing of a summon and complaint from the court.

Typically, you still have 35 days to respond to this.

That 35 days will move at the speed of light seemingly.

Even though a full foreclosure process takes about 300 days, you never want to get to this stage.

Here is why.

Your spouse, tenants if any and other family members are now potentially exposed to this information due to letters and postcards coming into the mailbox.

It complicates things even further as you attract unwanted attention.

STAGE 4 – Notice of Entry of Default – 155 Days

At this point, you have not answered the court, you missed the deadline to do so and/or you have not brought your mortgage payment current which is the bottom line.

The foreclosure process simply advances to officially filing a default officially with the court.

The truth is that there are requests that you can file with the court to delay this process anytime you want.

However delaying the inevitable only makes matters worse.

The important thing to note here is money answereth all things. It’s all about the Benjamins.

At this stage, you need to decide to keep or sell from a very objective standpoint.

I will cover how to make that decision in the next chapter.

It’s even more important at this stage to write every thoughts and action down by the day.

STAGE 5 – Entry of Final Judgement/Writ of Execution – 200 Days

At this stage, you can still save your property and most importantly your credit but of course, it’s getting more difficult by the second.

The mortgagee will now request the court to enter a final judgement against all entities of interest including you.

Some folks will file bankruptcy here but the truth is that you have other choices.

You always have the right to consult with an attorney during any of these stages. That takes us to the next stage.

STEP 6 Foreclosure Process in NJ – Sheriff Sale/Writ of Execution – 260 Days

Between 250 and 300 days, you can expect a notification of the official date when your property would be auctioned of at a county sheriff sale.

The writ of execution, the actual authorization to sell the property at a sheriff auction sale, is issued.

In some counties, the writ of execution is actually issued during the last stage; the entry of the final judgement.

But again as always, it doesn’t matter.

This is all about the money and collecting the money you owe.

Stop Foreclosure Secrets - Foreclosure Process Timeline in NJIt’s really not the end of the world especially now that you’ve gotten your hands on this book.

Once in a while, I speak to clients who did not pay enough attention and feel as though it’s unfair once at this stage.

I think the mortgagee and New Jersey foreclosure laws has been more than fair.

Think about it.

It’s been 250+ days since your last mortgage payment.

Fortunately or unfortunately, this is America and rent or some type of housing expenses will be incurred either you like it or not.

Essentially, you’ve been living rent free for 250 days plus.

If you were in the position of the mortgage bank and your customers have not made a single payment in 250+ days (almost one year), that doesn’t leave much room for profitability right?

So you and I can agree that this system is fair but more importantly, it really doesn’t matter.

Solution towards a better financial future is all that matters and all we should focus on at this stage.

Congratulations because we will be covering that in the next chapters.

STAGE 7 – Deed Transfer/Deficiency Judgements/Eviction – 300 Days

This is the last stage.

The auction has happened and quite a few things such as deed transfer, deficiency judgements, eviction and etc will happen behind the scenes.

If there is enough interest in the deal, your mortgage bank will actually buy the property over and attempt to extract all the value.

Gone are the days, when it’s all about any bid at the auction. Back then the bank may take as low money as possible, walk away and then file a judgement for the balance against you.

Gone are those days for real.

Never forget that this is about money and maximum revenue for the mortgage bank.

The big mortgage banks have created systems to work with local realtors.

These systems are turning properties at sheriff sales into real estate owned (R.E.O or bank owned).

Essentially, the bank buy the property from itself (don’t ask how…) and list it with a local real estate broker to collect the highest bid and fair market value while they work on kicking you and/or your tenants out with a legal eviction order simultaneously.

I’ve actually helped people stop foreclosure and save their credit from further doom at this stage before.

Was it luck?

I guess you can say that.

It’s very risky to wait as opposed to take action in early stages.
But there is also skills involved.

I’ll be sharing your options later in this book.

More importantly, I want you to know that there is a chance to stop foreclosure at any of these stages.

As always, it’s all about the money.

When there is money, there is a way. But I also want you to note this.

I didn’t say anything about the money needed necessarily having to be your money.

It doesn’t have to be your money in order to use it to stop foreclosure.

You do not need money.

You need a solution that fits your particular scenario.

In fact, you don’t have to come up with the solution.

That’s why this book was written.

You emotions are mightily engaged at this stage.

If you don’t suppress it with an objective outlook on the matter, more damages will follow.

It’s time to talk about your options now from a realistic stand point.

“You can avoid reality but you cannot avoid the consequences of avoiding reality.” ~ Ayn Rand.