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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How to deal with debt collectors during the COVID pandemic

The COVID-19 pandemic has affected almost every sphere of our lives. In addition to taking a heavy toll on the health of our national community, it has adversely affected our country’s economy. Many have lost jobs or hours have been reduced making bills hard to keep up with. But, that hasn’t kept debt collectors from going about their business of collecting debts. Read on to learn how to deal with debt collectors during COVID pandemic.

debt collector villain

Many businesses are experiencing a decline in consumer activity. As a result, revenue is dwindling.

If you are worried about how to manage during this unprecedented crisis. Trust me, you need to plan instead of panicking.

First, make sure to pay your bills on time if at all possible.Maybe you have to pick and choose the most important and pay those and not others. If you can’t, your creditors might mark delinquency on your credit report, and your debts might be submitted to collection agencies after a certain time. Yes, you heard it right! Debt collections continue amidst the outbreak of COVID-19.

So, what if you’ve already missed payments and been contacted by debt collectors? Here’s how to deal with debt collectors during COVID pandemic. It’s very important to realize that you have rights.

First of all, there’s no need to pay as soon as you receive a collection call because debt collectors often take advantage of adverse situations. With that in mind, follow these measures:

  1. Ask for the details of the debt collector, such as the name of the caller and the debt collection company, its address, etc. If the collection company is legitimate, the collector will provide the details.
  2. Under the FDCPA (Fair Debt Collection Practices Act), you can request a debt validation letter from the collector. The letter will contain the information about your original debt amount along with other charges levied by the collection agency, if applicable. Usually, you’ll receive the letter within five days from the initial contact. If you don’t, you have up to 30 days to send a letter requesting a debt validation letter.
  3. Don’t admit the debt unless it’s proven by the debt validation letter. Debt collectors often call for making payments for debts that have passed the statute of limitations or that don’t belong to you or are already paid. So, don’t readily admit that the debt is yours. Ask for the debt validation letter first, and then act accordingly.
  4. Don’t reveal additional information about your current debt, income, and other finances. Debt collectors might gather some of the information from your credit report and use it to force you to make immediate payment, but remember, you don’t need to provide these details over the phone. So, hang up if necessary. Your conversation with the debt collector should be short but informative. Take notes, like the name of the collector, collection company, debt amount, etc., while communicating.
  5. After receiving the debt validation letter, if you find out you don’t owe any or some of the debt, dispute it as soon as possible. Send a letter to challenge the validity of the debt with supporting documents. Keep in mind you have up to 30 days from receiving the validation letter to dispute the debt.

Due to the outbreak of COVID-19, some states have recommended stopping debt collection activity for the time being. Check with your state’s attorney general to learn if there are any recent updates about debt collections in your state. Plus, New Jersey and some states such as California, Alabama, Alaska, and some cities like Los Angeles and San Diego have temporarily halted evictions, foreclosures, etc. So, check with your local and state governments to find out if there is emergency protection due to the pandemic.

Is it possible to stop debt collectors from contacting you? Yes, it is! If you’re exhausted by incessant collection calls, you can mail the debt collectors a letter to request that they stop calling you. I would suggest sending a letter via certified mail and keeping the return receipt as proof that the collector has received it.

Of course, stopping collection calls doesn’t mean that you don’t owe the debt anymore. But, you might get a temporary break from the incessant collection calls. Again, you will still owe the debt, and the debt collection agency might file a lawsuit against you to collect it. So, if you find that you really owe the debt, it’s best to pay it off as soon as possible. If you need help to do so, you can seek debt relief asstance.

The bottom line is that you have to handle the situation efficiently. You might be worried about your business during this pandemic. And a debt collection call might become an added burden. I hope, now, you understand how to deal with the debt collectors during the pandemic. The key is to stay calm.

So that is how to deal with debt collectors during COVID pandemic, but, if you find you need help, please don’t hesitate to contact us. We may be able to help you negotiate a payment arrangement or even consider a bankruptcy if less severe tactics can’t help.

Lastly, stay safe and follow the precautionary measures recommended by the Centers for Disease Control and Prevention (CDC). And, if possible, help others during this pandemic.

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How a small business should deal with debt collectors during the COVID pandemic

The COVID-19 pandemic has affected almost every sphere of our lives. In addition to taking a heavy toll on the health of our national community, it has adversely affected our country’s economy. Read on to learn how a small business should deal with debt collectors during COVID pandemic.

debt collector villain

Many businesses are experiencing a decline in consumer activity. As a result, revenue is dwindling.

So, if you own a business you might be worried about how to manage it during this unprecedented crisis. Trust me, you need to plan instead of panicking. There are many ways to help your business survive COVID-19 and protect it, along with your employees.

First, make sure to pay your bills on time if possible. If you can’t, your creditors might mark delinquency on your credit report, and your debts might be submitted to collection agencies after a certain time. Yes, you heard it right! Debt collections continue amidst the outbreak of COVID-19.

So, what if you’ve already missed payments and been contacted by debt collectors? Here’s how a small business should deal with debt collectors during COVID pandemic. It’s very important to realize that you have rights.

First of all, there’s no need to pay as soon as you receive a collection call because debt collectors often take advantage of adverse situations. With that in mind, follow these measures:

  1. Ask for the details of the debt collector, such as the name of the caller and the debt collection company, its address, etc. If the collection company is legitimate, the collector will provide the details.
  2. Under the FDCPA (Fair Debt Collection Practices Act), you can request a debt validation letter from the collector. The letter will contain the information about your original debt amount along with other charges levied by the collection agency, if applicable. Usually, you’ll receive the letter within five days from the initial contact. If you don’t, you have up to 30 days to send a letter requesting a debt validation letter.
  3. Don’t admit the debt unless it’s proven by the debt validation letter. Debt collectors often call for making payments for debts that have passed the statute of limitations or that don’t belong to you or are already paid. So, don’t readily admit that the debt is yours. Ask for the debt validation letter first, and then act accordingly.
  4. Don’t reveal additional information about your current debt, income, and other finances. Debt collectors might gather some of the information from your credit report and use it to force you to make immediate payment, but remember, you don’t need to provide these details over the phone. So, hang up if necessary. Your conversation with the debt collector should be short but informative. Take notes, like the name of the collector, collection company, debt amount, etc., while communicating.
  5. After receiving the debt validation letter, if you find out you don’t owe any or some of the debt, dispute it as soon as possible. Send a letter to challenge the validity of the debt with supporting documents. Keep in mind you have up to 30 days from receiving the validation letter to dispute the debt.

Due to the outbreak of COVID-19, some states have recommended stopping debt collection activity for the time being. Check with your state’s attorney general to learn if there are any recent updates about debt collections in your state. Plus, New Jersey and some states such as California, Alabama, Alaska, and some cities like Los Angeles and San Diego have temporarily halted evictions, foreclosures, etc. So, check with your local and state governments to find out if there is emergency protection due to the pandemic.

Is it possible to stop debt collectors from contacting you? Yes, it is! If you’re exhausted by incessant collection calls, you can mail the debt collectors a letter to request that they stop calling you. I would suggest sending a letter via certified mail and keeping the return receipt as proof that the collector has received it.

Of course, stopping collection calls doesn’t mean that you don’t owe the debt anymore. But, you might get a temporary break from the incessant collection calls. Again, you will still owe the debt, and the debt collection agency might file a lawsuit against you to collect it. So, if you find that you really owe the debt, it’s best to pay it off as soon as possible. If you need help to do so, you can seek debt relief asstance.

The bottom line is that you have to handle the situation efficiently. You might be worried about your business during this pandemic. And a debt collection call might become an added burden. I hope, now, you understand how to deal with the debt collectors during the pandemic. The key is to stay calm.

So that is how a small business should deal with debt collectors during COVID pandemic, but, if you find you need help, please don’t hesitate to contact us. We may be able to help you negotiate a payment arrangement or even consider a bankruptcy if less severe tactics can’t help.

Lastly, stay safe and follow the precautionary measures recommended by the Centers for Disease Control and Prevention (CDC). And, if possible, help others during this pandemic.

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Landlords Must Adjust Restaurant Rents After COVID

Restaurants Should Stop Paying Rent Right Now and Negotiate Adjusted Lease Terms

Restaurants, if they can open at all, will not have the same number of customers per night forcing restaurants to cut expenses wherever they can. Rent, being one of the largest expense and calculated based upon nightly traffic, must be reduced for a restaurant to be able to survive. Landlords Must Adjust Restaurant Rents After COVID.

Tenant Out of Business Because Landlord Didn’t Lower Rent

Restaurants have been forced to close for up to two months by orders of Governors across the County seeking to flatten the COVID curve with Stay-At-Home orders bringing already struggling restaurants to their knees.

As States begin to lift stay-at-home rules and allow restaurants to open, many restaurants are looking at severe reductions in revenues as States demand social distancing between diners transforming what might have been a 50 person dining room to a 20 or 30 person dining room. How can a restaurant continue to pay the same rent that was based upon revenues of 50 people 2 or 3 times an evening? Landlords Must Adjust Restaurant Rents After COVID. LANDLORDS TAKE NOTICE.

Landlords Must Negotiate New Lease Terms Or See Long-Term Vacancies.

Landlords are certainly in a tough spot but, if they don’t agree right now to reduce rents, they are going to have a vacant first floor space that isn’t going to be taken by another restaurant anytime soon.

As reported in Restaurant Business: The Cheesecake Factory notified its landlords that it planned to not pay April rent as it closed restaurants or generated a fraction of typical revenue as sales shifted to all takeout and delivery and hundreds of operators and chains are doing the same thing: contacting their landlord about rent, which typically comes due the first of the month.

Restaurants are facing months with little or no sales and many have no idea when they will come back. That rent can be difficult, if not impossible, to pay. But landlords, too, could face months with a substantial decrease in revenue as retailers and restaurants hold back on rent.

Some landlords are willing to listen but others, referencing their own obligations to pay loan payments, utilities and other ongoing expenses, are not, or perhaps, cannot.

In those situations where a landlord is willing to allow a tenant to skip a month or two of rent, they are still expecting that at some time in the future, that skipped rent will be made up saddling the business with additional debt it probably can’t afford.

See more articles and information on our COVID Restaurant page.