Being behind on your mortgage on your NJ home, you are most likely thinking how can I start the process of stopping foreclosure NJ? How does the foreclosure process work? What options do I have in stopping foreclosure NJ? How fast do I need to move out of my house? Since NJ is a judicial foreclosure state the process must go through the court system which is much slower than the non-judicial process and have much more protections for homeowners in default. Here is the breakdown of the process.
60 Days into the Process
The first thing that has to happen is for the homeowner to miss at least one payment. Usually the bank won’t act until you have missed three payments in a row but it depends on the terms of your mortgage and the bank’s backlog of loans in default. The next step is for the bank to notify the homeowner by certified mail 30 days before it begins any action as per N.J.S.A. 2A:50-56. This will tell you what you can do to rectify the default which usually says you have to bank the balance in full.
The Court System
30-90 days in the bank will file an official complaint with the court and you would receive this a copy as well. You will have 35 days to answer this complaint. You could answer to contest the complaint but if you do not answer it means you admit that you are default and the bank has a correct claim. After this the case will move into the Office of Foreclosure where the County will review the case and makes sure everything is in place in terms of paperwork and evidence. A judgement will be passed allowing the bank to sell your house in a sheriff’s sale where they will try to sell the property for enough money to cover the mortgage.
If the bank intends to sell it, and in most cases they will, they must advertising the sale weekly for four weeks in a local newspaper. This may be longer if the bank has a large backlog of foreclosures.
Due To Backlogs, Foreclosure In New Jersey May Take Much Longer
You have a minimum of four to six months from the first missed payment to a sheriff’s sale, in theory. But in reality, you have much more time. Foreclosures in NJ are notorious for taking a long time since there is a backlog due to the 2008 housing crises. NJ has the 2nd largest foreclosure timeline in the country after NY.
Stopping Foreclosure NJ
Up until the final judgement from the court you can always catch up on missed payments and late fees. Even up until the Sheriff Sale you can “redeem” the property by paying off the loan, refinancing or participating in a loan modification plan. You can always file for bankruptcy. Bankruptcy only works if all of a consumer’s debts are handled through the bankruptcy court, so the law cuts off all outside measures.
Bankruptcy does no remove the mortgage from but it does allow you more time to fix your finances and get back on track with your payments. It could erase your unsecured debts and free up enough cash each month to make your mortgage payments doable.
If you want to sell your house and are curious on how the process works… and want to see what we can pay you for your house… you can get that ball rolling in a couple ways.
Give us a call today at (908) 912-6701: We’ll ask a few basic questions about your house… and within 24 hours we’ll make you an offer on your house. No Obligation at all. If the price works for you. Great! We can close on your timeline… in as little as 7 days.
Go fill out this really short and simple form with your basic house info: We’ll evaluate the property as soon as we get it today… then we’ll call you with a formal offer on your house in less than 24 hours.
It’s really simple. You pay no fees. No commissions.
We just agree on a price that works for both of us and that’s it.
Let us make you an offer on your New Jersey area house (we buy in other parts of New Jersey as well). You don’t have anything to lose. And you can have your house sold by this time next week (if you wanted us to close that fast) rather than having to wait months and months to market your house yourself the traditional way.