Dubiln Packard

Stop A Sheriff Sale – Save Your Home

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Stop A Sheriff Sale – Save Your Home

stop a sheriff sale new jerseyIf you want to save your home from a Sheriff sale, there are number of strategies you can employ – it’s not too late.

Don’t be concerned that its the last minute.  You may have been trying for months or longer to get a loan modification or maybe you gave up months ago but now you’re faced with the prospect of having your home sold out from under you by the Sheriff. Here’s what you need to know to survive.

How To Stop The Sale.

There are two methods of stopping the sale before it happens:

1. Adjournments – the lender (plaintiff) or homeowner (defendant) may ask the court to stop or adjourn the sale temporarily for any or no reason.  But, the homeowner can only ask twice and each time the sale can only be adjourned for two weeks.  The plaintiff or lender can ask as many times as he or she wants.  In certain limited situations, the homeowner can ask the court for a further adjournment but it will only be granted for good cause such as there is a sale pending or you are about to be approved for a loan modification.

2. Bankruptcy – this is a powerful tool to (a) stop the Sheriff sale and (b) to bring your mortgage loan current which ultimately saves your home form foreclosure.

Once The Sale is Stopped, How To get Caught Up On Your Missed Payments.

Once the sale has been stopped, it’s time to get working on a loan modification.  A loan modification is what most people want and in most cases is the best way to resolve a foreclosure.  If its not possible to get a loan modification in the short time you have after you have stopped a Sheriff sale, and we didn’t use bankruptcy to stop a Sheriff sale, then bankruptcy can help to (1) stop the sale after the adjournment runs out, (2) get more time to get a loan modification, (3) use the bankruptcy court’s loss mitigation program to get a loan modification, or (4) get current on the loan without a loan modification.

Can You Get A Loan Modification?

Even though you may have tried and failed or given up hope months ago, and even though the Sheriff sale is about to happen, it still may be possible to get a loan modification to permanently cure your foreclosure case.

The Basic Issue To Be Resolved.

The Arrears – The problem you are facing is that there a number of missed payments and the lender won’t just let you start paying again. Once three payments have been missed, the loan is declared in default and the only way to be able to start paying again is to catch-up on the missed payments.  These missed payments are part of what is called the arrears.  Any real estate taxes or insurance that may have been paid by the lender and any legal fees and late fees are added together with the missed payments to make up all of the arrears.  The arrears have to be paid before the lender will allow you to start making regular monthly payments again.

How to Pay The Arrears – There are essentially three ways to pay the arrears: (1) pay the total arrears in a lump sum, (2) with a loan modification, have the arrears added to the principal balance of the loan, or (3) pay the arrears in 60 equal monthly payments in a chapter 13 bankruptcy plan.

The Tools We Use.

Loan modification – in a loan modification, the arrears are added to the principal balance of the loan and a new amortization schedule is calculated usually based on 30 years and often with a new interest rate. For loans with high interest rates, this helps lower the monthly payment as does extending the term to 30 years and sometime longer.  This is the ideal result.

Chapter 13 Bankruptcy – this is essentially a repayment plan that is used to pay the arrears over 60 equal monthly payments.  Then, in addition to making these 60 monthly payments, at the same time, you start paying your current monthly mortgage payment.  This double payment – so to speak – is what can be tough for many people, that’s why the loan modification is the best route if possible. An additional benefit to the chapter 13 bankruptcy is that in certain circumstances, we may be able to eliminate a second mortgage loan.  Also, if you have excessive consumer debt from credit cards, or if you have other debt from medical or other unplanned expenses, these debts can be handled with a chapter 13 bankruptcy.

Consider All of Your Options – Take Action.

As you can see there are a number of ins-and-outs to resolving a foreclosure.  This article only scratches the surface but I hope you can see there is help waiting for you if you take action.  Don’t be discouraged if there is a Sheriff sale pending.  We can stop a Sheriff sale and resolve your foreclosure even though its the last minute.

 

Get my free Consumer Guide to Saving Your Home From A Sheriff Sale.

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Stop Foreclosure | New Jersey

Stop Foreclosure

stop foreclosure new jersey lawyer

Have you been served Foreclosure papers in New Jersey?

Don’t panic! The foreclosure process takes time, usually as much as a couple of years. New Jersey is a so-called “judicial state” in foreclosure proceeding – the foreclosure must proceed through the court system.

Although there is time to take action, the sooner the better. Contact your lender immediately to apply for loan modification. The longer you wait, farther behind you’ll get in your payments, creating “arrears” in your loan.

The most common reason loan modifications are denied is errors in the paperwork. If your modification is denied or you’ve been told you can’t qualify, then have your paperwork reviewed by a qualified attorney and re-submit your application.

If it turns out you’re unable to qualify (which an attorney can help you determine), then investigate Chapter 13 bankruptcy. The terms of Chapter 13 will involve a restructuring of your debt into a payment plan you can afford, if you’re still working and have enough income to make the payments in your payment plan. Often a homeowner can qualify for a modification under the terms of their Chapter 13 plan after an unsuccessful application before filing. Arrears are added to the loan principal, the interest is reduced or set to around 4%, and the term of the loan may be extended to 45 years, with some closing fees waived.

Although principal reduction has been in the news, with the White House advocating strenuously on behalf of it, the truth of the situation is that principal reduction is extremely rare. Many unscrupulous operators have sprung up promising principal reduction for large upfront fees. Beware scam operations! Talk to an attorney you trust before committing to such a program.

The total of loan principal and interest (P&I) should be close to 30% of your gross income to qualify for a home loan modification.

It’s extremely difficult for the self-employed to obtain a modification, but may qualify under Chapter 13.

Should I use a Foreclosure Defense attorney?

Another scam that has become increasingly common is a promise of Foreclosure Defense. Although for a period of time Foreclosure Defenses were more commonly heard by the courts in the wake of mass errors and shoddy practices by lenders, these actions have abated and are unlikely to succeed without a legitimate complaint of unrecorded payments. If you sent a payment that’s not showing up in the statements you’re getting, you might have a case.

Beware services that promise Foreclosure Defense for large upfront fees or monthly retainers for the duration of your occupancy. Consult an attorney you know and trust before entering into any such agreement. Research any offer you’re considering. Look them up on Google and search for possible complaints.

Should I use a Loan Modification service?

Another scam that’s emerged recently is Loan Modification Negotiation or Assistance Services with large upfront fees, claiming government affiliation or non-profit advocacy. For a large upfront fee, such services offer principal reduction or unbelievable terms. Remember, principal reduction is extremely rare. Research any offer and any company you’re thinking of doing business with.

It’s possible to stop a sheriff’s sale with an automatic stay under a Bankruptcy filing, which must be confirmed to remain permanent.

Find a listing of impending sheriff sales for your New Jersey county

Contact Todd Murphy Law today, your qualified New Jersey foreclosure specialist.

Serving:
Bergen County
Essex County
Hudson County
Hunterdon County
Middlesex County
Morris County
Somerset County
Union County

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New Jersey Governor Murphy Extends New Jersey Eviction Moratorium for residential tenants and homeowners

Landlord tenant court
Landlord Tenant Court

Many New Jersey residents have lost jobs or had their hours reduced making it hard or impossible to pay their rent. Governor Murphy, saw the need to help these New Jersey residents and enacted a New Jersey Eviction Moratorium protecting tenants from being removed from their homes during this difficult time. The moratorium has been extended each month keeping the protection in place to protect New Jersey tenants.

Moratorium applies to tenants and homeowners

This moratorium applies to tenants subject to eviction by landlords and home owners subject to removal from their homes following a sheriff sale upon foreclosure.

Governor of New Jersey Enacts Eviction Moratorium

In March, when the pandemic hit New Jersey hard, Governor Murphy put into place several Executive Orders starting with Executive Order 103 on March 9, 2020 in which he declared a State of Emergency and Public Health Emergency effective immediately on that day. On March 19, 2020, Governor Murphy signed Executive Order 106 enacting a moratorium on removal of people form their homes due to tenant evictions or foreclosures.

Governor of New Jersey Extends Eviction Moratorium

Every month starting April 1, the governor has extended the State of Emergency and Public Health Emergency. Once again On July 2, 2020, Governor Murphy extended The State of Emergency and Public Health Emergency through Executive Order 162.

Each of these Executive Orders extends the anti-eviction moratorium for “two months following the end of the Public Health Emergency or State of Emergency established by Executive Order No. 103 (2020), whichever ends later….”

With the July 2 Order extending the State of Emergency for 30 days, this extends the moratorium through September 30, 2020.

I expect the Governor to extend the Order at least once again in August but we will wait and see how things go. He is under a lot of pressure from Trump to get things back to normal although, thankfully, the Governor has taken a conservative approach to things.

Don’t let landlords take advantage of you

Some landlords have been trying to evict tenants even though the moratorium is in place. Read more here: Don’t let this happen to you.

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Landlords Evict Tenants During COVID-19 Against New Jersey Eviction Moratorium

Essex County Rent Court

Some New Jersey landlords have been evicting tenants during COVID-19 against the New Jersey Eviction Moratorium put in place by Governor Murphy in March.

Unscrupulous landlords have been getting away with intimidating tenants and evicting them from their homes at a time when they have nowhere to turn.

Many New Jersey residents have lost employment or have had their hours reduced due to the COVID-19 pandemic. New Jersey’s governor, knowing people would be effected by a loss of employment and then may not be able to pay rent, acted to prevent these evictions by putting into place a New Jersey Eviction Moratorium.

Some heartless landlords try to evict a tenant for non-payment anyway taking advantage of the tenent’s lack of knowledge of the moratorium.

Judges Should Step In

A typical landlord tenant hearing has the homeowner on one side and a aggressive lawyer on the other side bullying the tenant into agreeing to move out to avoid having to pay back-rent while judges stand by doing nothing to help the tenant when the judge knows full well there is a moratorium in place.

This should not be allowed to happen during this COVID pandemic with mass unemployment due to no fault of the tenants.

I blame judges for not putting a foot down when they know all too well there is a eviction moratorium in place. I understand Judges refrain from offering legal advice to a litigant, especially one who is not represented by counsel, but to allow an agressive landlord to throw someone out of their home during this very uncertain time just should not be allowed to happen.

Judges should take a stand and dismiss cases while the moratorium is in place.

The NJ State Assembly Should Act

If judges aren’t going to take a stand, the NJ State Assembly should enact legislation preventing landlords from filing eviction with heavy fines for doing so to give it teeth.

Any landlord that files for eviction while the moratorium is in place should be fined the equivalent of one month rent for filing the case and the case should automatically be dismissed by the clerk of court.

Governor Murphy Enacts Anti-Eviction Moratorium

In March, when the pandemic hit New Jersey hard, Governor Murphy put into place several Executive Orders starting with Executive Order 103 on March 9, 2020 in which he declared a State of Emergency and Public Health Emergency effective immediately on that day. On March 19, 2020, Governor Murphy signed Executive Order 106 enacting a moratorium on removal of people form their homes due to tenant evictions or foreclosures.

Murphy Extends to Anti-Eviction Moratorium

Every month starting April 1, the governor has extended the State of Emergency and Public Health Emergency. Once again On July 2, 2020, Governor Murphy extended The State of Emergency and Public Health Emergency through Executive Order 162.

Each of these Executive Orders extends the anti-eviction moratorium for “two months following the end of the Public Health Emergency or State of Emergency established by Executive Order No. 103 (2020), whichever ends later….”

With the July 2 Order extending the State of Emergency for 30 days, this extends the moratorium through September 30, 2020.

I expect the Governor to extend the Order at least once again in August but we will wait and see how things go. He is under a lot of pressure from Trump to get things back to normal although, thankfully, the Governor has taken a conservative approach to things.

Should you find yourself in this situation, you now know to tell the judge there is a moratorium in place and there can be no eviction.

Good luck

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New laws to address New Jersey Foreclosure Crisis

Governor Phil Murphy signed on April 29, 2019 new laws to address New Jersey foreclosure Crisis. These new laws will help New Jerseyans struggling with the state’s highest-in-the-nation foreclosure rate. The new laws will assist homeowners facing the prospect of foreclosure and pave the way for community revival by addressing blight. Many of the measures were recommended in a September 2018 report by the Special Committee on Residential Foreclosures, which was created by Chief Justice Stuart Rabner.

“The foreclosure crisis has hurt our economy and jeopardized economic security of too many New Jersey families,” said Governor Murphy. “Our communities cannot succeed while vacant or foreclosed homes sit empty or while families live in limbo. I am proud to sign these bills into law today and get New Jersey closer to ending the foreclosure crisis.”

Among the new laws, Governor Murphy signed A664, which codifies the Judiciary’s Foreclosure Mediation Program into law, creating a long-term, permanent program that will not only increase the number of people entering mediation, but also ensure that homeowners receive housing counseling assistance to help provide them with the best possible outcomes in the foreclosure process.

“The foreclosure crisis hit the families of Atlantic County harder than almost any county in the nation. These bills offer a better path for the region and hope for families in despair,” said Special Counsel Jim Johnson. “It’s a vital and important step forward.”

Another important law is S3464 which requires the sheriff to conduct a foreclosure sale within 120 days of the sheriff’s receipt of a writ of execution, instead of scheduling a closing sale within that time frame, as currently provided by the act. The bill also allows the Office of Foreclosure within the Administrative Office of the Courts to issue an order to appoint a Special Master to hold foreclosure sales for one or more properties within a vicinage. The bill also clarifies that, to convey the foreclosed property to the purchaser from the sheriff’s sale, the plaintiff’s attorney is required to prepare, and the sheriff’s office is required to use, the standard form of deed that is set forth in the “Fair Foreclosure Act.”

Perhaps most important, the bill also revises the statute that governs the process for adjournments in connection with sales of real estate by virtue of an execution. The bill provides that a sheriff or other officer conducting the sale may make up to four adjournments, two at the request of the lender and two at the request of the debtor, instead of the total of two adjournments that the statute currently allows. The bill provides that these adjournments shall not exceed 30 calendar days each, instead of the 14 calendar days currently provided for in the statute. As currently provided in the statute, a court of competent jurisdiction may, for cause, make further adjournments.

The Governor signed the following nine bills into law:

  • A664 – Codifies the Judiciary’s Foreclosure Mediation Program; dedicates monies from foreclosure filing fees and fines.
  • A4997 – “Mortgage Servicers Licensing Act.”
  • A4999 – Requires filing of certain creditor contact information with residential mortgage foreclosure complaint and lis pendens.
  • A5001 – Revises statute of limitations for residential mortgage foreclosures.
  • A5002 – Permits certain planned real estate developments to file certain liens; concerns limited priority of certain liens.
  • S3411 – Requires receivership appointment application prior to certain foreclosure actions; requires notice of intention to foreclosure on residential mortgage to be filed within 180 days prior to commencing foreclosure; limits reinstatements of dismissed mortgage foreclosure actions.
  • S3413 – Makes certain changes to summary action foreclosure process under “Fair Foreclosure Act.”
  • S3416 – Clarifies that “New Jersey Residential Mortgage Lending Act” applies to certain out-of-state persons and involved in residential mortgage lending in the State.
  • S3464 – Revises certain procedures for real estate foreclosure sales; alters adjournment of sale process.

The change in the adjournment time from 14 to 30 for each of the two adjournments available to homeowners provides for additional time often vital to helping save their homes at the last minute prior to a sheriff sale.

For more information on adjourning a sheriff sale, see my article How to Stop or Adjourn A Sheriff Sale in New Jersey and for more information and other articles in my sheriff sale series see Sheriff Sale Help.

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New Jersey Revises Statute of Limitations on Foreclosures

Finally Some Clarity on the Statute of Limitations for New Jersey Foreclosures.

There has been much confusion about the statute of limitations for residential foreclosures in New Jersey.  Finally, now, we have some clarity.  The New Jersey Assembly voted to modify the terms of the Fair Foreclosure statute to limit the filing of foreclosure cases to six years after default in some cases.

This bill reduces the statute of limitations in residential mortgage foreclosure actions from 20 years to six years from the date on which the debtor defaulted, in situations in which the date of default is used as the method to determine when the statute of limitations has expired.

Thus, the bill revises the alternative methods under the “Fair Foreclosure Act” for determining when the statute of limitations for the foreclosure of a residential mortgage has expired by providing that an action shall not be commenced following the earliest of: (1) six years from the date fixed for the making of the last payment; (2) thirty-six years from the date of recording of the mortgage; or (3) six years from the date on which the debtor defaulted.

This is great news for those homeowners that have been trying to resolve a home foreclosure for at least six years before the bank files for foreclosure.  The bill leaves a few unanswered questions which will no doubt come up in cases filed after the date of this bill.

Here is the Text of Assembly Bill No. 5001

ASSEMBLY, No. 5001
STATE OF NEW JERSEY
218th LEGISLATURE

INTRODUCED FEBRUARY 7, 2019

Sponsored by:
Assemblyman ANTHONY S. VERRELLI
District 15 (Hunterdon and Mercer)
Assemblyman RAJ MUKHERJI
District 33 (Hudson)
Assemblywoman VERLINA REYNOLDS-JACKSON
District 15 (Hunterdon and Mercer)
Senator TROY SINGLETON
District 7 (Burlington)
Senator STEVEN V. OROHO
District 24 (Morris, Sussex and Warren)
Senator DAWN MARIE ADDIEGO
District 8 (Atlantic, Burlington and Camden)

Co-Sponsored by:
Assemblywoman Murphy, Assemblymen Houghtaling and McKeon

SYNOPSIS
Revises statute of limitations for residential mortgage foreclosures.

CURRENT VERSION OF TEXT
As introduced.

An Act concerning certain mortgage foreclosures and amending P.L.2009, c.105.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 1 of P.L.2009, c.105 (C.2A:50-56.1) is amended to read as follows:
1. An action to foreclose a residential mortgage shall not be commenced following the earliest of:
a. Six years from the date fixed for the making of the last payment or the maturity date set forth in the mortgage or the note, bond, or other obligation secured by the mortgage, whether the date is itself set forth or may be calculated from information contained in the mortgage or note, bond, or other obligation, except that if the date fixed for the making of the last payment or the maturity date has been extended by a written instrument, the action to foreclose shall not be commenced after six years from the extended date under the terms of the written instrument;
b. Thirty-six years from the date of recording of the mortgage, or, if the mortgage is not recorded, 36 years from the date of execution, so long as the mortgage itself does not provide for a period of repayment in excess of 30 years; or
c. [Twenty] Six years from the date on which the debtor defaulted, which default has not been cured, as to any of the obligations or covenants contained in the mortgage or in the note, bond, or other obligation secured by the mortgage, except that if the date to perform any of the obligations or covenants has been extended by a written instrument or payment on account has been made, the action to foreclose shall not be commenced after [20] six years from the date on which the default or payment on account thereof occurred under the terms of the written instrument.
(cf: P.L.2009, c.105, s.1)

2. This act shall take effect immediately and apply to residential mortgages executed on or after the effective date.

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How to pay bankruptcy filing fees in installments

Bankruptcy Filing Fees Can Be Paid In Advance.

Not everyone is aware that the chapter 7 and chapter 13 filing fee can be paid for in installments.  At time of filing the bankruptcy petition, an application is made which is almost always granted which allows the filing fee to be paid in 4 equal installments.

Filing Fees (as of the date of this article)

Chapter 7: $335/4 $83.75

Chapter 13: $310/4 $77.50

How to pay the filing fees once your application is approved:

Once your application to pay the filing fee in installments has been approved, you must make your monthly payments on time or the Clerk of the Court will dismiss your case without warning.

  • We forwarded the first of four payments on your behalf to the Clerk at the time of filing your application.
  • Your remaining three (3) payments are due 30 days, 60 days and 90 days after the date of filing your case.
  • Payments are in the amount of $83.75
  • Payments must be in the form of a Money Order
  • Mail payment to the address below where your case was filed.

NOTE: to be safe, mail your payment 10 days prior to the due date to ensure it arrives on time.

Include your case number on the money order along with your name and address.

 

Address to mail your Bankruptcy Filing Fees installment payment:

For Newark Cases

Mailing Address: 

US Bankruptcy Court
District of New Jersey
PO Box 1352
Newark, NJ 07101-1352
Phone (973) 645-4764

 

For Trenton Cases:                                                               

Mailing Address:                                                                   

Clarkson S. Fisher US Courthouse
402 East State Street
Trenton, NJ 08608
Phone (609) 858-9333

 

For Camden Cases:

Mailing Address: 

US Bankruptcy Court
District of New Jersey
PO Box 2067
Camden NJ 08101
Phone (856) 361-2300