Dubiln Packard

Foreclosure

Everything you need to know about

Foreclosure

  • Foreclosure Defense
  • Loan Modification

and your options to purchase, refinance, sell, liquidate, surrender, or foreclose your property in the State of New Jersey.

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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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How can I save my home from foreclosure?

It’s possible in many cases to save your home despite periods of financial difficulty.

The steps that can be taken are:

Home Loan Modification. It might be possible to reduce the payments by extending the term of the loan, adjusting the interest payments, and in some cases reduce the principal balance on the mortgage, or some combination of these three. There is a threshold of qualification for modification.  The bank needs proof of ability to pay, with the principal and interest no greater than thirty percent of income after the refinancing. Loan modification requires full documentation and takes place at a closing, similar to a purchase or sale.

Chapter 13 bankruptcy. There are thresholds for qualification. The court requires a means test, establishing that you’ll have the ability to pay on a payment plan, making partial restitution to your creditors (often at a fraction of the balance due) with the debts discharged completely at the end of the payment plan. Your home can be protected. Second and third mortgages can become severed from the home and added to the pool of consumer debt covered by the payment plan.

Chapter 7 Bankruptcy If you have limited equity in the home and enough income to pay the mortgage, it might be possible to keep your home under Chapter 7 bankruptcy.

  • If you have a very high amount of consumer debt, like credit cards debts or payday loans, it can be nearly impossible to qualify for a loan modification or a chapter 13 bankruptcy. However, a chapter 7 bankruptcy can eliminate these consumer debts and as a result allow you to qualify for a loan modification or chapter 13 bankruptcy. This little trick of using a chapter 7 to qualify for a chapter 13 is referred to as a “chapter 20 bankruptcy.”
  • To learn more about how chapter 7 bankruptcy could be a good strategy for you, read our post: When Is A Chapter 7 Bankruptcy Useful? (P.S. It even goes over what to do if you can’t save your home, or don’t want to)

 

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Will Bankruptcy Stop a Sheriff Sale?

Will Bankruptcy Stop A Sheriff SaleBankruptcy will stop a Sheriff sale provided a bankruptcy case filing number is provided to the Sheriff prior to the sale. So, Will Bankruptcy Stop A Sheriff Sale?  Yes.

Sheriff’s sales are the final event in the foreclosure process but sometimes, if an adjournment of the Sheriff sale cannot be obtained, the only way to stop the sale is with a bankruptcy filing.

If the property is placed in bankruptcy through a bankruptcy filing, the Sheriff is not permitted to proceed with the sale until the Sheriff receives further orders from the plaintiff’s attorney. The file is held in abeyance of the Court until the bankruptcy is dismissed or if there is a default on the defendant’s part.

If you have been attempting to get a loan modification and save your home from foreclosure, a chapter 13 bankruptcy may prove to be helpful by stopping the Sheriff’s sale  and obtaining a loan modification. In a Chapter 13 Bankruptcy filing, you will be permitted to catch-up on all of the arrears (missed payments as of the time of filing) over a 60-month period through a Chapter 13 plan and immediately start making your mortgage payments. Provided you have enough income to make those payments, there is no approval required from the bank, rather, your chapter 13 plan is confirmed by the bankruptcy court.  This is often extremely helpful in the case of a self-employed person who has been unable to convince a lender of the ability to pay.

Will Bankruptcy Stop A Sheriff Sale?  Yes.  Contact us to learn more.

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What Is The Sheriff Sale Process In New Jersey?

Sheriff Sale ProcessThe Sheriff Sale Process in New Jersey takes place according to the local rules of each County Sheriff Department. Sales take place at each County Sheriff’s office according to each Sheriff’s Office Schedule.  Most of the Counties maintain a list of real estate properties to be sold at auction on a searchable website.  Traditional paper lists are available for review at all Sheriff’s Department offices during normal business hours.

All Sheriff’s sales are sold subject to a first mortgage if any, and any municipal, state, or federal liens, if any. A title search should be run on the property prior to bidding.  The search will reveal all outstanding liens, which you would assume if you are the highest bidder.

Sheriff’s Sales are voice bid auction sales (no sealed bids).  The attorney for the plaintiff will start the bidding at $100.  The bidding will continue until the highest price is reached. The highest bidder will be the purchaser.  The plaintiff’s attorney normally does not allow the bid to go for less than the judgment amount due his client.  The plaintiff’s attorney will bid until he or she has reached the upset price (typically the amount owed on the first mortgage).  The upset price of the total of the judgment due, interest, attorney’s fees, sheriff’s fees, advertising costs and commissions.  The attorney will stop bidding once the price exceeds the upset price.  The highest bidder will be the successful bidder.

The Plaintiff’s attorney may adjourn the sale as many times as is necessary for any reason or time period.  Under NJSA 2A:17-36, the Sheriff has the discretionary right to make only two (2) adjournments of the sale, not exceeding two weeks maximum for each.  The defendant or his attorney requesting the adjournment for a just cause requires a written letter and a fee before granting such adjournment.

If the property is placed in bankruptcy, the Sheriff cannot proceed with the sale until further orders from the Plaintiff’s attorney are received.  The file is held in abeyance by the Court until the bankruptcy is dismissed or if there is a default of the defendant’s part.

The owners of the property may, at any time prior to the sale, try to save their home and/or property in several ways.  They may try to reinstate the delinquent amount owed, pay the judgment in full or obtain another loan, etc.  They may ask try to sell the property in order to pay the judgment and at the same time profit from any proceeds.  The defendants have a ten-day redemption period after the sale during which time they may redeem the property or object to the sale through the Court.  The bidder in this case would receive his 20% deposit back.

A Sheriff’s Sale Deed will be prepared and ready in approximately 30 days after the sale.  The balance due on the sale must be paid no later than 30 days after the sale date in accordance with the conditions of sale.  Lawful interest will be charged on the balance due from the 11th day after the sale until the remaining balance is paid.

It is the sole responsibility of the purchaser to record the deed and pay the fees in the County Clerk’s Office.  It is also the sole responsibility of the purchaser to notify the owner that they have purchased the property and now hold the deed to the property.

If the defendant does not voluntarily leave the property, the purchaser must apply to the Court for a Writ of Possession.  The Sheriff’s Office will serve the Writ upon the defendants which will advise the to vacate the premises within a particular period of time.  If the defendant has not vacated by the stated date, the attorney for the purchaser must set a date to have a moving van sent to the property and have the defendants personal belongings removed and stored in a place of safe keeping.  the costs of the moving and storage are the responsibility of the purchaser.

If you are considering purchasing a property at a Sheriff’s Sale, it is strongly recommended to retain an experienced NJ Foreclosure attorney for assistance.

 

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Can a sheriff’s sale be postponed under NJSA 2A:17-36?

Sheriff Sale AdjournmentNew Jersey Statute NJSA 2A:17-36. Adjournments of sale of real estate.

NJSA 2A:17-36. Adjournments of sale of real estate provides that a sheriff or other officer selling real estate by virtue of an execution may make two adjournments of the sale, and no more, to any time, not exceeding 14 calendar days for each adjournment. However, a court of competent jurisdiction may, for cause, order further adjournments.

In New Jersey, a Sheriff’s sale of a foreclosure property can be adjourned (fancy for postponed) twice by the Sheriff at the request of the homeowner for any reason. Each of these adjournment shall be for not more than 14 days.  The lender may request an adjournment as many times as it wants without reason.  Once the two “free” adjournments have been exhausted, the homeowner may apply to the Court by Motion for further adjournments provided good cause has been shown to the Court.

For assistance in obtaining an adjournment of a sheriff’s sale of a foreclosure home, contact your local Sheriff department or a qualified NJ foreclosure lawyer in New Jersey.

Link To Statute NJSA 2A:17-36.

Link to instructions and a form to adjourn a sheriff sale.