Can I Get My House Back After the Sheriff’s Sale?
August 9, 2013 4 Comments
Photo courtesy of Jinja
During the foreclosure process, it is definitely possible for a delinquent borrower to prevent a property from being sold at Sheriff’s Sale. If you have received a Notice to Foreclose from your lender, it is important that you act swiftly if you desire to keep your home. If you act quickly, you will have several decent options:
- Bring the mortgage payments current. Naturally, this is only a viable choice if you have suddenly come up with the necessary funds, whether you have been gifted some money, it was left to you in a will, you’ve gotten a fantastic new job, or have hit the lottery.
- Request a forbearance or modification of your mortgage loan. Forbearance is like taking a break from the requirements of your loan while you get your finances in order. Your lender may grant you forbearance for a set period of time if you can’t make your scheduled loan payments. They may also grant you a lower payment amount that is more appropriate for your income level, which is called a loan modification. Interest rates and the life of the loan may be reorganized in order to allow you to make the monthly payments and continue to keep your home.
- File for bankruptcy. Whether you decide to file for Chapter 7 or Chapter 13, filing for bankruptcy is a potential way to save your home. Chapter 13 would allow you to set up a repayment schedule approved by the New Jersey Courts, so that you can get caught up on overdue payments over a set period (three to five years).
- List your home for sale in the real estate market. You can sell your home at any point in the foreclosure process – up to and including the day before it is sold at auction (Sheriff’s Sale). Work with a good attorney who can help you delay the foreclosure process. This may allow you to sell your home, pay off your debt to the bank/lender, and potentially (although unlikely) keep any sum over and above what you owe the bank if you have equity in the home.
- Sell your home in a short sale. A short sale means you will be selling your home for less than you owe the bank. Talk to your attorney to find out if this is a good strategy in your particular situation.
If you have failed to act before the foreclosure sale date, the eviction process will begin soon after, as the new owners will want you to vacate the premises. At this point, you have one option left: the redemption period. In New Jersey – borrowers have a set time frame after the foreclosure sale during which they may still be able to save their home.
With that being said, the redemption time period is extremely limited in that a homeowner technically only has 10 days after the Sheriff’s Sale (foreclosure date) to redeem the property.
During the redemption period, you have the right to purchase your property back for the price it was sold for. One last ditch and very difficult approach would be to attempt to sell your house in a rapid short sale during the 10 day redemption period. You will need to work in tandem with an extremely experienced real estate/foreclosure attorney in order for this aggressive approach to work.
The bottom line is this: if you’re in danger of losing your home to foreclosure, the best approach is to keep your head out of the sand. Don’t delay – act today. Call us; we can help.
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