A mortgage foreclosure is a law suit filed in the New Jersey Superior Court asking the Court for the legal right to have real property (whether a home, commercial property or vacant land) auctioned off to the highest bidder by the county sheriff. Home owners who face a mortgage foreclosure are given special protections under the law. New Jersey has a group of laws called the Fair Foreclosure Act. It applies only to mortgages taken out by home owners. We advise and assist both individuals and businesses with commercial and residential foreclosure litigation.
When a mortgage payment is more than 30 days late, the mortgage lender has the right to declare the mortgage in default, and the money owed is “accelerated.” This means that the homeowner or property owner must pay off the mortgage or else a foreclosure lawsuit will be started to sell the home at a sheriff's auction sale. Most home lenders will not start a foreclosure until the borrower is three months past due in payments.
After a lawsuit is begun, some lenders will refuse to accept payments unless sufficient to pay off the mortgage in full. Rarely is any homeowner able to come up with the full principal, interest, legal and other fees charged by the lender.
Most lenders have loss mitigation departments through which the homeowner may be able to negotiate a way to get caught up. This is worth exploring as soon as the homeowner begins to anticipate that a payment will be missed. This catch-up method is voluntary with the lender. The benefit to the home owner is that it avoids both bankruptcy and foreclosure. Certainly, this is less costly and there is no adverse entry on a credit report other than late payments. It is well worth the home owner inquiring of the lender or the lender's servicing agent, or speaking with Bill Wolfson.
Our law firm can help explain the foreclosure and foreclosure mediation process to you, defend foreclosure law suits when warranted, assist you in the mediation process, help you decide between good alternatives, and discuss your rights and responsibilities.
For more in-depth information about foreclosure issues, see Bill Wolfson's Comments section.
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