Foreclosure Trend Sweeping The Nation
Q: Gerald, we’re under contract to buy a short sale property. How much time do we have to close before the bank forecloses on the property? Bonnie, Totowa, NJ
A: Great question Bonnie, the simple answer to your question is that it depends on how far along in the foreclosure process the borrower who owns the property you are buying is. In many places like North Jersey where you live, you can check the sheriff sale list online to see if there is a sheriff sale date scheduled—the foreclosure process is different in different states and areas but where you live, there normally has to be a sheriff sale scheduled before a property is actually foreclosed on. If there is no date set yet, you have some time, if a sheriff sale date is already set, you have to get moving. In New Jersey as in many states across the country, the foreclosure process has accelerated recently.
During the financial crisis, lawmakers passed measures designed to give homeowners behind on the mortgage payments more time to find a way to stay in their homes. That trend is reversing in a big way and states are fast-tracking home foreclosures. So, regarding your purchase, Bonnie, make sure someone is monitoring the foreclosure sale of the short sale property you are buying to make sure it doesn’t get foreclosed on before you buy.
Thanks for your question, Bonnie, good luck.
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