NJ Foreclosure and the Order to Show Cause

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A frequent topic here on the Veitengruber Law blog, foreclosures in New Jersey are still too numerous to count. Statistics show that the number of new foreclosures within the state are starting to decline, which is good news and tells us that the housing market is beginning to improve.

Since all NJ foreclosures are required to move through the judicial system, many of the existing foreclosure cases (that have been piling up since the Crash of 2008) are still causing long delays. New Jersey courts haven’t been able to get caught up because of the sheer number of foreclosure cases, and because of the many required steps that each case must follow.

Sometimes, because the current NJ foreclosure timeline is excessively long, homeowners can get too relaxed, thinking that they have all the time in the world to make any decisions about ‘life after foreclosure.’ It’s also common to want to ignore it, especially if it seems like nothing will ever happen.

In these cases, when their foreclosure nears the end of the process (Sheriff’s Sale), panic sets in. Properties that fall into foreclosure will be sold at a Sheriff’s Sale automatically if the homeowner doesn’t answer the original Complaint. This is known as an uncontested foreclosure.

In the event that your Sheriff’s Sale is imminent, and you (for whatever reason) left your foreclosure uncontested, the time to make a move is now. To do nothing means that your home will be sold at auction and you will be forced to move out, likely ten days after the date of the sale. Those ten days are known as the redemption period. If you can somehow afford to buy back your home, you can do so within those ten days and retain ownership of your home.

At Veitengruber Law, we’ve helped many clients who waited until ‘the last minute’ to make any decisions regarding their foreclosed home. There are several things we can do to help you save your home as long as the Sheriff’s Sale has not yet occurred – even if the sale is a few days away:

File for bankruptcy – Bankruptcy puts an automatic stay on any and all of your lenders, preventing them from attempting to collect on any of your debts. This includes your home lender, and the foreclosure process is halted until your bankruptcy case is resolved.

Short Sale – An alternative to foreclosure, short sale will still end with you losing your home. The difference between having your home sold at Sheriff’s Sale and selling it via short sale is that homes often sell for higher amounts at short sale. Additionally, your credit score will be much less severely impacted by a short sale instead of a foreclosure.

Order to Show Cause – The Order to Show Cause is a court application that can only be used in absolute emergencies wherein the petitioner (in this case, the homeowner) will be harmed irreparably without the help requested on the Order. In the foreclosure context, your attorney can file an Order to Show Cause if there has been an error in the foreclosure paperwork that will adversely effect the outcome of the case. It’s a long shot, but we’ve had success with this tactic before, gaining an additional 60 days for our clients to sell their home outside of the foreclosure.

We have many more “tricks” up our sleeves that have gotten out clients the results they wanted and needed time after time. If your foreclosure sale is approaching and you need help sorting out the details, call Veitengruber Law today so we can assist.

Image credit: Karen Neoh

 

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