Often only your mortgage lender will bid on a home in a Sheriff Sale in New Jersey at a foreclosure Sheriff sale.
So, what does that mean to you?
First, the Sheriff Sale process in New Jersey for home owners in foreclosure is confusing and often scary. The fear of losing your home is staggering and those who are involved in it have many questions. There are many little strategies that, when put together, can prolong the time you stay in your home.
Here’s one little strategy that can help.
At a Sheriff Sale for a home being foreclosed on in New Jersey, often the mortgage lender is the only bidder at the Sheriff Sale, particularly if the home is underwater (value of the home is less than what is owed to the first mortgage lender). There usually isn’t anyone who would bid on a home at a price above market and the lender for some reason doesn’t yet want to face the fact that this loan is going to be closed-out at a loss.
The Bank Might Actually Be Happy That You Stay In The Home After The Sheriff Sale.
Why is this important? Because if the lender is the only bidder, rather than an investor or buyer who wants to live in the home, the lender may not be in a rush to get you out of the home after the sale. In fact, the lender might appreciate having someone living in the home and keeping it in reasonably good condition.
You Must Actually Be Evicted After A Sheriff Sale.
In another post, I will talk about eviction after a Sheriff Sale but for now just know that even after a Sheriff Sale, unless you leave the home freely, you must be evicted as if you were a tenant in the property and therefore are afforded certain protections under the law. For now, understand that is can be helpful to you if only the lender places a bid on a home in a Sheriff Sale In New Jersey.