Question 1

Which foreclosure options let you keep your home in New Jersey?

Accepted Answer

Five of the seven main options are aimed at keeping the home: reinstatement (paying the arrears), loan modification, forbearance or a repayment plan, refinancing, and Chapter 13 bankruptcy. Selling on the market or to a cash buyer resolves the foreclosure by giving up the home in exchange for the equity.

Question 2

What is the fastest way to resolve a New Jersey foreclosure?

Accepted Answer

Speed depends on the tool: a Chapter 13 filing takes effect the day it is filed through the automatic stay, reinstatement works immediately once the arrears are paid, forbearance answers typically come in one to two weeks, and cash sales close in roughly 7 to 30 days. Faster is not automatically better; each fast option carries its own cost.

Question 3

How late in the process can each option still be used?

Accepted Answer

Options narrow as a case advances. Modification and refinancing work best before final judgment; reinstatement generally works until final judgment; Chapter 13 and a completed sale of the home work until the sheriff sale itself; and full redemption survives 10 days beyond the sale. New Jersey homeowners can also generally adjourn the sale twice, up to 30 days each, to make time.

Option	Keep home?	Speed	Cost to you	Credit impact	Works until	The catch
Reinstatement	Yes	Immediate once paid	The full arrears, in one sum	Stops further damage; missed payments remain on record	Generally up to final judgment (then the full judgment amount is due)	Requires real money now; the hardest part is simply having it.
Loan modification	Yes	1-6 months of review	Free to apply (never pay an upfront fee)	Reported as modified; better than a foreclosure judgment	Servicers can review late in the case, but odds are best before judgment	Roughly a third to 40% of applications succeed; incomplete paperwork is the usual killer.
Forbearance / repayment plan	Yes	1-2 weeks for an answer	Free to arrange	Depends on how the servicer reports it	Most useful early, while arrears are small	Pauses the problem rather than solving it; everything paused is still owed at the end.
Refinance (incl. home equity)	Yes	5-8 weeks to close	Closing costs; a new rate, often higher	Paying off the defaulted loan ends that case	Needs enough equity and income to qualify, so realistically early-to-mid case	The people who most need it are the hardest to approve; delinquency itself hurts qualification.
Chapter 13 bankruptcy	Yes	Automatic stay the day of filing	Attorney + filing fees; a 3-5 year plan	Serious, long-reported, but caps the foreclosure damage	Any time before the sheriff sale is completed	A five-year commitment that fails if plan payments stop; needs steady income and an attorney.
Sell on the market (incl. short sale)	No	60-90+ days	~8% selling costs; short sales need lender approval	Far better than a completed foreclosure; short sales vary	Until the sale date, if adjournments keep the auction at bay	The clock is the risk: a listing that outlives your adjournments helps nobody.
Sell to a cash buyer	No	7-30 days	Typically 70-85% of market value	Avoids a completed foreclosure on your record	Right up to the auction, if the closing beats the date	You are paying 15-30% of your home’s value for speed; only worth it when time is truly short.

Every Option, Side by Side