Dubiln Packard

Todd Murphy

by

Who Will Bid On A Home In A Sheriff Sale In New Jersey

foreclosure sheriff sale new jerseyOften 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.

by

How Much Notice You Will Receive Before A Sheriff Sale In New Jersey

sheriff sale notice new jerseyAre You Worried About How Much Notice You Will Receive Before A Sheriff Sale In New Jersey?

If your home is in foreclosure and you’re getting close to the end of the process, you may be worried about being served with a notice of a Sheriff Sale.  Many people wonder: how much notice will be given prior to the sale?

Notice in the Newspaper.

The Sheriff in New Jersey is required to provide notice by advertising the sale in the designated newspaper for four (4) consecutive weeks.   Each Sheriff office has designated a specific newspaper in which notices are advertised.  Check on the website for the Sheriff office in your county.

Notice At The Property.

Although not required to do so, the Sheriff often posts a notice at the property 30 days prior to the sale and also provides written notice to the occupant whether that is you as the owner or if you are a tenant in the property.

Online Sheriff Sale Listings.

Each Sheriff office maintains a website where the current list of sales is posted in a searchable database.  This is a good resource to get up-to-date information but not all offices update the site right away so some of the information may be somewhat out of date.  You can also call the Sheriff office or go to each Sheriff website for a listing of all upcoming sales.

Friendly Service.

I have found in all cases that the personnel in the Sheriff offices are extremely friendly and helpful and a call or visit to their offices is always helpful.

If your home is in foreclosure and you are worried about a Sheriff sale and how to stop it and save your home, we can help. Start by downloading one of our free consumer guides.

by

Supreme Court Rules Borrowers Cannot Strip Second Mortgage In Chapter 7 Case

supreme court bankruptcyA Tough Case For Home Owners In New Jersey Facing Foreclosure.

The Supreme Court of the United States decided in a unanimous decision recently that a homeowner in a Chapter 7 bankruptcy case can not void a second mortgage lien when the debt owed on a first mortgage lien exceeds the current value of the home.  The practice, while not allowed in New Jersey, known by bankruptcy lawyers and foreclosure lawyers as “stripping” a lien is very helpful to homeowners. When a lien is “stripped” it is converted from a secured loan to an unsecured loan which means little or no payment will go to that creditor and – more importantly – the lien will be removed from the property which provides much more flexibility in managing the first mortgage on the property.

New Jersey bankruptcy and foreclosure lawyers were watching this case closely in the hopes the practice would become allowed in New Jersey Bankruptcy Court.  Homeowners in a chapter 13 bankruptcy case do currently enjoy the ability to “strip” a second mortgage.

The ruling, which will benefit commercial lenders, says that bankruptcy courts may not “strip off” a second mortgage lien on property if the value of the property is less than the amount the homeowner owes to the first mortgage lienholder — in other words, the second mortgage lien is “completely underwater.”

In the case of Bank of America v. Caulkett, Bank of America asserted that junior liens should not be treated as unsecured loans, because the bankruptcy code only “strips off” claims from property that are disallowed and because the Supreme Court’s ruling in Dewsnup v. Timm, disallowing “stripping down” of primary liens to the value of the underlying property, should extend to this case. The defendants argued that second liens should be treated as unsecured, and hence disallowed.

The Court’s unanimous ruling impacts the right of junior lienholders to collect on loans in the event of a debtor’s declaration of bankruptcy and the treatment of previously secured, but subordinate, debt in bankruptcy proceedings.

From the ruling:

Held: A debtor in a Chapter 7 bankruptcy proceeding may not void a junior mortgage lien under §506(d) when the debt owed on a senior mortgage lien exceeds the current value of the collateral if the creditor’s claim is both secured by a lien and allowed under §502 of the Bankruptcy Code. Pp. 2–7.

The debtors here prevail only if the bank’s claims are “not . . . allowed secured claim[s].” The parties do not dispute that the bank’s claims are “allowed” under the Code. Instead, the debtors argue that the bank’s claims are not “secured” because §506(a)(1) provides that “[a]n allowed claim . . . is a secured claim to the extent of the value of such creditor’s interest in . . . such property” and “an unsecured claim to the extent that the value of such creditor’s interest . . . is less than the amount of such allowed claim.” Because the value of the bank’s interest here is zero, a straightforward reading of the statute would seem to favor the debtors.

This Court’s construction of §506(d)’s term “secured claim” in Dewsnup v. Timm, 502 U. S. 410, however, forecloses that reading and resolves the question presented here. In declining to permit a Chapter 7 debtor to “strip down” a partially underwater lien under §506(d) to the value of the collateral, the Court in Dewsnup concluded that an allowed claim “secured by a lien with recourse to the underlying collateral . . . does not come within the scope of §506(d).” Id., at 415. Thus, under Dewsnup, a “secured claim” is a claim supported by a security interest in property, regardless of whether the value of that property would be sufficient to cover the claim. Pp. 2–4.

(b) This Court declines to limit Dewsnup to partially underwater liens. Dewsnup’s definition did not depend on such a distinction. Nor is this distinction supported by Nobelman v. American Savings Bank, 508 U. S. 324, which addressed the interaction between the meaning of the term “secured claim” in §506(a)—a definition that Dewsnup declined to use for purposes of §506(d)—and an entirely separate provision, §1322(b)(2). See 508 U. S., at 327–332. Finally, the debtors’ suggestion that the historical and policy concerns that motivated the Court in Dewsnup do not apply in the context of wholly underwater liens is an insufficient justification for giving the term “secured claim” a different definition depending on the value of the collateral.

If you are struggling with a foreclosure, we may be able to help.  Start by downloading our free consumer guide at the right.

by

What Is A Sheriff Sale

sheriff saleIf Your Home Is Scheduled For A Sheriff Sale, You Need Answers.

Let’s start with understanding what is a sheriff sale.  Once a lender or lien holder has a judgment in a foreclosure case against the home owner, it can then order your home to be sold at a public sale conducted by the Sheriff in your County and sold to the highest bidder.  the proceeds of the sale are used to pay-off the lender and, if the bid price is high enough, all other liens on the property and, in the rare event any money is left over, that surplus cash is paid to the home owner.  The sale is conducted by the Sheriff’s office in the County in which the home is located usually on the same day each week.  Interested parties appear at the sale and place live bids.

We have the answers you need.  Keep reading or request a copy of our free consumer guide.

by

Resources to help after bankruptcy

jumping-for-joyWhat you do after bankruptcy is as, or possibly more, important than the bankruptcy itself.  Bankruptcy may have gotten you out of debt or resolved a foreclosure but there are other things you should do after bankruptcy to get back on your feet like rebuilding your credit and perhaps resolve other issues in your life that may have gotten you into a tough financial situation.  Below are some resource sites you might find helpful.

 

Debt

Money Matters

The Federal Trade Commission’s Money Matters site contains advice and resources for those facing credit card debt.

www.ftc.gov/bcp/edu/microsites/moneymatters/dealing-with-debt.shtml

MyMoney.gov

MyMoney.gov is the U.S. government’s website dedicated to teaching all Americans the basics about financial education. MyMoney.gov provides links and resources regarding a wide range of financial issues, including managing debt and credit.

www.mymoney.gov

Federal Trade Commission

The FTC is the federal agency responsible for administering consumer protection laws. The FTC site offers consumers information about their rights with regard to debt collection and how to avoid scams related to debt and credit.

www.ftc.gov/bcp/menus/consumer/credit.shtm

Consumer Financial Protection Bureau

The Consumer Financial Protection Bureau was founded to improve financial products and services for consumers. Their site provides easy-to-understand information about credit cards, home loans, student loans and banking.

www.consumerfinance.gov

Federal Student Aid on the Web

Federal Student Aid is an office of the U.S. Department of Education. This site provides information about repayment options for federal student loan borrowers, including Income Based Repayment, forbearance and deferment.

studentaid.ed.gov

Internal Revenue Service

If you owe back taxes, it is a good idea to contact the IRS in order to discuss your options. The following links can help you locate your local IRS office or contact a Taxpayer Advocate. The Taxpayer Advocate Service (TAS) is an independent organization within the IRS. It helps taxpayers who are experiencing economic hardship; taxpayers who are seeking help in resolving problems with the IRS; and those who believe an IRS system or procedure is not working as it should.

www.irs.gov/localcontacts/index.html

U.S. Department of Housing and Urban Development

This U.S. Department of Housing and Urban Development site provides information about renter/homebuyer rights, housing assistance programs, and assistance with home improvements.

www.hud.gov

Federal Trade Commission Mortgage Publications

The Federal Trade Commission has published two resources that are available for free online with advice to homeowners:

Defaulting on Your Mortgage Has Costly Consequences and Mortgage Servicing:
Making Sure Your Payments Count:
http://www.ftc.gov/bcp/edu/pubs/consumer/homes/rea17.pdf
Mortgage Servicing: Making Sure Your Payments Count:
http://www.ftc.gov/bcp/edu/pubs/consumer/homes/rea10.pdf

Making Home Affordable

The Making Home Affordable program assists homeowners in financial distress.

www.makinghomeaffordable.gov

Consumer Financial Protection Bureau

If you need to discuss your mortgage payment options, the Consumer Financial Protection Bureau can help you connect with a HUD-certified housing counselor.

www.consumerfinance.gov/mortgagehelp

Federal Trade Commission Money Matters

The Money Matters site contains useful information about the options available to homeowners facing foreclosure.

www.ftc.gov/bcp/edu/microsites/moneymatters/your-home.shtml

Health

Insure Kids Now

InsureKidsNow.gov provides information about Medicaid and CHIP services for families who need health insurance coverage.

www.insurekidsnow.gov

U.S. Department of Health and Human Services

The U.S. Department of Health and Human Services maintains HealthCare.gov, where you can learn about insurance, government health programs, prevention and wellness, and how health care reforms affect you.

www.healthcare.gov

Medicare

Learn more about Medicare, the federal health insurance program for people 65 and over, and people of any age who are permanently disabled and cannot work.

www.medicare.gov

Medicaid

Medicaid is health coverage available to certain people and families who have limited income and resources, such as pregnant women, children under the age of 19, people 65 and over, people who are blind, people who are disabled, and people who need nursing home care.

www.medicaid.gov

Utilities

Energy Star

The Environmental Protection Agency’s Energy Star site provides information about how to save money by making energy-efficient choices.

www.energystar.gov

U.S. Department of Energy

The Energy Saver site provides information about how to cut electricity, gas and water costs at your home.

www.energysavers.gov

Transportation

U.S. Department of Energy

The U.S. Department of Energy’s Fuel Economy site offers advice about how to cut down on gas costs, find a fuel-efficient car, and calculate your MPG.

www.fueleconomy.gov

GasBuddy.com

This website provides up-to-date information about where to find the cheapest gas prices in your neighborhood.

www.gasbuddy.com

Shopping

Federal Trade Commission

The FTC site provides tips and hints about smart shopping and how to avoid fraud and scams.

www.ftc.gov

Consumer Action Handbook

This handbook, published by the Federal Citizen Information Center, can be ordered for free and provides advice about how to make the best purchases when shopping for a car, home accessory, etc. In addition, it provides information about where to file a consumer complaint.

www.consumeraction.gov

Consumer Reports Magazine

Consumers Union, an independent, non-profit organization that tests consumer products and reports on their characteristics to consumers, publishes Consumer Reports Magazine and maintains the consumerreports.org website. This magazine and website provide useful product information to potential buyers, including product prices, usability ratings, safety ratings, and product characteristics. Consumer Reports covers practically all products, from cars to sewing machines.

www.consumerreports.org

USA.gov

This site consolidates useful consumer information from a wide range of federal agencies. Find their tips for saving money here.

http://www.usa.gov/topics/consumer/smart-shopping.shtml

Child Care

Childcare.gov

This site provides useful information for parents about finding child care in your area, choosing the right child care, and dealing with the cost of child care.

www.childcare.gov

U.S. Department of Education

The Department of Education’s site can guide parents to educational and child care resources in their state.

www2.ed.gov/about/contacts/state/index.html

Internal Revenue Service

The following link provides useful information about the Child and Dependent Care Credit, which can help to defray the cost of child care for working parents.

www.irs.gov/newsroom/article/0,,id=106189,00.html

Smoking/Gambling/Drinking

National Institutes of Health

Cutting back on activities like smoking, drinking and gambling can save a great deal of money over time. NIH offers advice and resources regarding alcohol use, nicotine use, and excessive gambling.

http://www.nlm.nih.gov/medlineplus/alcoholism.html

http://www.nlm.nih.gov/medlineplus/smoking.html

http://www.nlm.nih.gov/medlineplus/compulsivegambling.html

12-Step Programs

12-Step Programs like Nicotine Anonymous, Alcoholics Anonymous, and Gamblers Anonymous provide support and guidance for those who wish to control these habits.

www.aa.org

www.nicotine-anonymous.org

www.gamblersanonymous.org