Bankruptcy After Sheriff’s Sale – Will it Save my Home?

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If you are having trouble paying your mortgage bill every month, foreclosure is most likely on your mind. Perhaps you have already stopped making your home loan payments, so you know that foreclosure is imminent if action isn’t taken soon.

Letting your property go into foreclosure is a decent solution if you don’t want to remain living in your home anymore and you simply can’t afford to keep paying the mortgage every month. As long as you have familiarized yourself with the ramifications of having a foreclosure on your credit report, (the damage it will do to your credit worthiness for the next few years), giving up your home to foreclosure isn’t always a bad thing. Your lender will take possession of the home, and, aside from any deficiency judgements, you will be able to move on with your life and hopefully find a much more affordable place to live.

Many times, however, we see clients who actually do wish to keep their homes. Often, these clients are mere weeks away from the Sheriff’s Sale of their home when they come to us for help! Luckily, we’ve done this enough times to reassure you that, even if your Sheriff’s Sale is imminent, we can help. By filing for bankruptcy, your foreclosure will be put into what is called ‘Automatic Stay,’ which prohibits any of your lenders from collecting any money from you, including your mortgage lender.

My Sheriff’s Sale Already Occurred. Can Filing for Bankruptcy Reverse it?

If your property’s Sheriff’s Sale has already passed, filing for bankruptcy simply can’t help you to keep your home. There is a very short 10 day redemption period after your Sheriff’s Sale during which an automatic stay may still be able to get your home back, but after that 10 day period, you will officially have no legal claim to your property. You will be evicted, if you haven’t already, and you will not have any more time to attempt to save your home.

The most important piece of information about saving your home from a New Jersey foreclosure is: the faster you act, the better. Too often, homeowners who are at risk of foreclosure don’t want to face reality. While this is completely understandable, ignoring your impending Sheriff’s Sale and eviction won’t make it go away. Of course, there are always exceptions to the rule, but in general, your lender isn’t going to forget that you haven’t made your mortgage payment in over a year.

Usually, the foreclosure process gets triggered once a homeowner becomes only 1-2 payments behind on their mortgage loan. As soon as you receive a foreclosure notice from your bank, you should set up a meeting with an experienced New Jersey bankruptcy attorney who has a lot of experience with foreclosure defense. We can make a lot of magic happen here at Veitengruber Law, but the sooner we know what kind of help you need, the better able we’ll be to plan your defense.

We offer free office consultations and we are pleased to announce that we are now offering free phone consultations to New Jersey residents who cannot make the drive to our Wall or Bordentown offices. Don’t wait any longer – call us today!

 

Image credit: Alessandra

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2 Responses to Bankruptcy After Sheriff’s Sale – Will it Save my Home?

  1. Pingback: Foreclosure in New Jersey: How Long Does it REALLY Take? | Veitengruber Law

  2. Pingback: After the Short Sale: What is a Deficiency Judgement? | Veitengruber Law

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