The prospect of foreclosure can be intimidating. However, at Casa Real Properties, we understand that life can throw unexpected challenges your way. We recognize that circumstances can change, making it difficult for you to keep up with your mortgage payments and potentially face foreclosure. Rest assured, we are here to assist you. With our expertise in the foreclosure process, coupled with our network of programs, lenders, and attorneys, we can guide you through the process, present you with viable options, and help you retain ownership of your home.

Steps to Foreclosure in New Jersey

1.) Default

When you fail to make your mortgage payments, you fall into default on your loan. Traditionally, lenders initiated the foreclosure process after three or more missed payments. While this used to be the norm, recent changes have come into effect. In most cases, federal law prohibits lenders from filing the initial foreclosure complaint until you are more than 120 days late. However, keep in mind that some lenders may initiate foreclosure after just one missed payment.

2.) Notice of Intention to Foreclose

Before filing a foreclosure complaint, the lender must send you a Notice of Intention to Foreclose. This notice must be sent to you via certified or registered mail, providing a 30-day window before the complaint is filed. This grace period allows you time to rectify the default. The notice will outline the amount owed, specify the defaulted aspects, highlight your rights to sell the property, and provide any other relevant information.

3.) Foreclosure Compliant

If you haven’t resolved the default within the 30-day period, your lender will file a Foreclosure Complaint and serve you with the necessary documents. After being served, you have 35 days to either accept or contest the complaint.

4.) Notice of Entry of Default and Entry of Final Judgment

If you fail to respond to the complaint, the lender must send you a notice offering a final opportunity to rectify the default at least 14 days before the Entry of Final Judgment is made. If you are unable to resolve the default, the court will issue a writ of execution.

5.) Sheriff’s Sale

Upon receiving the writ of execution, the sheriff will schedule a sale of the property within 150 days. You will be notified about the scheduled sale date. After the property is sold, you have a 10-day window to reclaim the property by either selling or refinancing it.

Get Immediate Help With Your Home

Actions You Can Take to Avoid NJ Foreclosure

1.) Contact Your Lender

If you are struggling to meet your mortgage payments, it is advisable to be proactive. The Consumer Protection Financial Bureau recommends contacting your lender immediately. Explain the changes in your situation and discuss your plans to overcome the difficulties. Your mortgage lender may be willing to assist you by devising a mutually acceptable plan to avoid foreclosure. They might offer temporary payment reductions or suspensions, working with you to help you get back on track.

2.) Reach Out to a HUD-approved Housing Counselor

The Department of Housing and Urban Development provides a free service where you can discuss various options to help you retain your home.

3.) Explore Refinancing Options

Numerous programs are available for homeowners facing financial hardships. These programs often offer free counseling, and there may be specific assistance available for military personnel or individuals with unique circumstances. At Casa Real Properties, we have a vast network of mortgage lenders and attorneys who can assist you throughout the process. Request information via our contact form for assistance.

4.) Consider Loan Modification

Loan modification is a viable option that involves modifying your existing loan by incorporating the default amount into the loan balance. This may also involve adjusting the loan’s duration or interest rate.

5.) Sell Your Property

If your circumstances have significantly changed, making it impossible to sustain homeownership, and you wish to sell your home, please contact one of our realtors for dedicated assistance.

How Casa Real Properties Can Assist You

At Casa Real Properties, our goal is to help our clients achieve the American Dream of homeownership. We strive to ensure that you can comfortably live in a home that aligns with your financial capabilities. Whether it’s financing, sales, or other recommendations to help you maintain ownership of your home, we are here to support you. Reach out to us today for expert assistance.

FAQ’s about New Jersey Foreclosures

Foreclosure in NJ is a legal process that occurs when a homeowner fails to make mortgage payments, leading to the lender taking ownership of the property. It is a means for the lender to recover the unpaid debt by selling the property.

In NJ, the foreclosure process typically begins with the lender filing a foreclosure complaint in court. The homeowner receives a notice and has an opportunity to respond. If the homeowner fails to respond or resolve the issue, a judgment of foreclosure is issued. The property is then sold at a public auction, and if the sale proceeds do not cover the outstanding debt, the lender can seek a deficiency judgment against the homeowner.

The duration of the foreclosure process in NJ can vary depending on several factors, such as the complexity of the case and the backlog of foreclosure cases in the court system. On average, the process can take several months to over a year to complete.

It may be possible to stop foreclosure in NJ through various means, such as loan modifications, repayment plans, or filing for bankruptcy. Seeking assistance from a foreclosure defense attorney or contacting a housing counseling agency can help explore available options to potentially halt the foreclosure process.

Foreclosure in NJ can have significant consequences. It can result in the loss of your home, damage to your credit score, and difficulties in obtaining future loans or mortgages. Additionally, there may be tax implications and the possibility of owing a deficiency judgment if the sale proceeds do not cover the outstanding debt.

In NJ, homeowners do not have a statutory right of redemption, meaning there is no automatic period in which you can reclaim your property after foreclosure. However, it’s advisable to consult with a legal professional to understand any potential options or alternatives available to you in your specific situation.

If your property is sold in a foreclosure auction in NJ, the proceeds from the sale are used to satisfy the outstanding debt. If the sale proceeds exceed the debt, you may be entitled to the excess funds. However, if the sale proceeds fall short, the lender may pursue a deficiency judgment against you for the remaining balance.

Hiring a foreclosure defense attorney in NJ can be beneficial as they can provide legal guidance, protect your rights, and help explore available options to potentially prevent or delay foreclosure. An attorney can review your case, negotiate with the lender, and represent your interests throughout the foreclosure process.

Stop the Foreclosure Process of Your Home