Facing foreclosure? Let the Morris County Bankruptcy Attorneys of Ast & Schmidt, P.C. help today
Helping clients in Mount Arlington, Montville, Dover, Cedar Knolls, Flanders, Boonton, Denville, Morristown, Florham Park, Rockaway, Madison, Whippany, Budd Lake and the surrounding cities
Foreclosure is the legal process through which a bank, mortgage company, or other secured creditor seeks to be able to conduct a sheriff’s sale of a home or other type of real estate generally due to the homeowner’s failure to make mortgage payments, or otherwise comply with the mortgage or deed of trust. The foreclosure process can be confusing and frightening. However, with the help of an experienced Morris County foreclosure attorney, this process can be managed more effectively, or even avoided altogether.
Foreclosure under the NJ Fair Foreclosure Law
Foreclosures in NJ are controlled by the NJ Fair Foreclosure Law that provides certain protections to the homeowner and is a time-consuming process for the lender and its attorneys. They have to provide you with various notices and right to cure. A homeowner would have the right to cure the mortgage arrears by making a payment of the full amount of the arrears in a lump sum at any time prior to the entry of the foreclosure judgment. Even after the entry of the foreclosure judgment, most lenders would accept the payment to reinstate the mortgage.
The homeowner even has the right to redeem the property by the payment of the full foreclosure amount within ten days after the sheriff’s sale. However, because most debtors lack the means to tender the full amount, filing for Chapter 13 bankruptcy is often a necessary alternative. To prevent the sale of your home, Chapter 13 bankruptcy must be filed prior to the sale date.
Alternatives to Foreclosure
If you are unable to make mortgage payments, you have other options prior to the foreclosure sale, even if the foreclosure action has started, provided that the Chapter 13 is filed prior to the sheriff’s sale being conducted. Once the sheriff’s gavel comes down, it would be too late to file a Chapter 13 to cure the mortgage arrears through a Chapter 13 plan.
Alternatives to foreclosure include:
- Reinstatement of the loan agreement
- Short sale of your home to satisfy the debt
- Loan modifications to make payments more feasible
- Loss mitigation plans entered into with the mortgage company
- A short-term payment plan known as a forbearance agreement
If You Are Facing the Possibility of Foreclosure
If you are facing a situation in which you may be unable to make mortgage payments in the future, or if a foreclosure action has already been entered against you, contact a Morris County foreclosure lawyer at Ast & Schmidt, P.C. to assist you in evaluating your alternatives.