STOP a NJ Sheriff’s Sale and KEEP YOUR HOME

NJ sheriff's sale

In New Jersey, it can take a long time to foreclose on a home. There are a lot of options to explore before you get to the point of foreclosure. If, however, you find yourself unable to work with your lender to get a loan modification and a foreclosure commences, you may be facing a sheriff sale of your home. The good news is, even at the point that a sheriff sale has been scheduled, there are still ways to stop the auction and save your home. Veitengruber Law is here to offer valuable legal advice to get you through this time sensitive situation.

After it has been decided the home will go to sheriff’s sale, the lender or the homeowner can ask the court to adjourn, or postpone, the sale temporarily. Under NJ law, the adjournment can be requested for any or no reason at all, but the homeowner can only ask for adjournment twice whereas the lender can ask as many times as they want. These adjournments last for two weeks and give the homeowner time to consider their options.

In New Jersey, each county has its own adjournment procedures and sets its own costs for requests. Generally, the fee is small – around $28 – in most counties. All requests for adjournment must be made in person and the fee must be paid up front. The request can be made in a letter listing the docket number and sheriff sale number along with the property address and date of the sale. Some counties offer a standard form to request the adjournment. We can help you submit this request to make sure you are approved for your two week adjournment.

In limited situations, the homeowner can ask for additional adjournments. This formal request to the Court would only be granted for good cause, like if a sale of the home is pending or the homeowner is likely to be approved for a loan modification. Additional requests for adjournment can be costly and are at the full discretion of the judge, so it is important to try to work toward a solution within the time limits provided by your two allotted adjournments.

Once the sale of the home has been stalled or stopped, you have a few options to consider. Because you have missed more than three payments, the loan is declared to be in default and the lender will not just let you start paying again to catch-up on missed payments. These missed payments and late fees are combined with any real estate taxes or insurance that has been paid by the lender along with any legal fees to make up the “arrears.” The arrears must be paid before the lender will allow you to start making monthly payments again.

There are a few ways to pay off the arrears. The first is to pay them off in one lump sum, which can be difficult if not impossible for most people. The second is to negotiate a loan modification with your lender and have the arrears added to the principal balance of the loan. Even if you have tried and failed to get a loan modification in the past, with Veitengruber Law’s help it may still be possible to work out a loan modification. This could permanently close your foreclosure case and save your home. A loan modification is often the most ideal way to resolve a foreclosure case and we will do everything they can to work toward this goal.

The final option to repay arrears and end your foreclosure case while keeping your home is to file for Chapter 13 bankruptcy. Once bankruptcy is declared, a sheriff sale of your home will be immediately stopped. While the idea of filing for bankruptcy can seem intimidating, bankruptcy is actually a very useful legal tool to get back on top of your finances. A Chapter 13 bankruptcy will likely save your home from foreclosure and also give you options to mitigate your debts. If you also have excessive credit card debt or other debt from medical or other unplanned expenses, these debts can be managed within the same bankruptcy case. Working with an experienced  bankruptcy law attorney who also provides foreclosure defense services will help you determine the best way to save your home and get you on the path to a better financial future.

There are a lot of considerations to take into account when facing a sheriff sale of your home in New Jersey. We understand that this is a deeply personal decision and we will be there to support you every step of the way. Don’t assume you are out of options because a sheriff’s sale is scheduled. Contact us today for an expert assessment of your situation and save your home!

Bidding on a NJ Foreclosure Property: The Lowdown

NJ foreclosure

Buying a home at a NJ foreclosure sale (or sheriff’s sale, as they are commonly called) can be a fantastic way to score a property at below-market price. While there are some risks and pitfalls to be aware of when bidding at a foreclosure auction, if you’re well-informed, you’ll likely come out of the process happy and (hopefully) successful!

Naturally, the most obvious advantage of purchasing a home via sheriff’s sale is the low price you’re likely to pay. Foreclosure sales are a great way to gain ownership of a rental property or a home you intend to “flip.” Homes that are being auctioned at a New Jersey foreclosure sale have been through the judicial foreclosure process that our state requires, and the lender has been permitted by the court to move forward with selling via auction.

How can I find out about upcoming NJ foreclosure sales?

This is one of the best parts about buying a foreclosed property in New Jersey. Sheriff’s sales are required to be advertised for a minimum of 30 days. You can find listings of upcoming sheriff’s sales in local newspapers for each county. Many jurisdictions also have sheriff’s sale listings online on their county court website.

How does a sheriff’s sale work?

In New Jersey, foreclosure auctions are controlled or led by the sheriff’s department of the property’s county. All local county rules must be followed, however, there are several general rules that are consistent across all counties, according to NJ law.

  1. NJ foreclosure properties up for sale must be sold subject to the first mortgage held on the property. This information can usually be found within the property’s first lien.
  2. Any NJ foreclosure sale will also be subject to any/all local state or federal liens on the property.

Because of the above information, all bidders at NJ sheriff’s sales would be remiss to fail to run a complete title search on the property in question before even considering bidding. Failure to do so could land you with a property that is deeply encumbered by multiple liens, for which you will be 100% responsible.

In New Jersey, foreclosure sales usually start with the lender being given an opportunity to open the bidding. Most lenders will start with a $100 bid. Bidding on the property continues via voice auction between all of the interested parties present at the auction.

The usual course of a NJ sheriff’s sale/auction continues with bidding the price of the property higher and higher until a highest bidder remains. If you are the lucky bidder, you will be required to pay a 20% deposit of your bid price.

Upon conclusion of the bidding, the sale is considered to have ended. However, the end of the sale triggers what is known as the Redemption Period. This is a ten day period during which the original owner (who was foreclosed upon) is allowed to “redeem” the property. This can only be done if the original owner can completely pay off the foreclosure judgement amount, including any additional fees and costs (and potential liens).

At the end of the Redemption Period, if the original homeowner does not choose to redeem the home, you will be given a sheriff’s sale deed. When you receive this deed, it is expected that you will make full payment of the balance of your successful auction bid. You’ll also have to handle any fines that accrued relating to the property, after which you will be able to officially transfer the title from the former owner to yourself!