Foreclosure is a process that occurs over time and differs from state to state. The foreclosure process begins when lenders state their intent to foreclose after borrowers are delinquent.
A court order is necessary for foreclosure in various states. In New Jersey, the property is for sale if the plaintiff receives a favorable judgment, and the use of revenues is for the unpaid mortgage loan balance. The plaintiff may buy the property if no other bidders show up, at which point it becomes real estate owned.
Foreclosure Process in New Jersey
In many ways, taking on a mortgage to buy a house is no different from taking on any other kind of debt. Most of the time, a lender and borrower enter into a written agreement wherein the lender offers the borrower a specific amount of money with particular payback terms.
If there are missed payments or installments, the mortgage is the default. In the past, if the debtor missed three or more payments, the mortgage lender would typically begin the foreclosure process. Policymakers more protect borrowers who default on payments for a home than those who default on other types of payments.
Though state-by-state, US foreclosure laws generally call for a homeowner\’s protection by requiring that lenders give notice before seizing a home and that there be alternatives for debtors to catch up on payments.
Notice to Foreclose and Filing
The management offers the required mortgage lender to send the homeowner a Notice of Intention to Foreclose through a registered mail with a return proof that it has been received before filing a complaint in foreclosure. One of the most significant safeguards provided to homeowners by the Fair Foreclosure Act is this one.
Before submitting a complaint, the lender must provide the notice at least 30 days—but no later than 180 days—in advance. The notification informs that mortgage payments are past due and provides 30 days to catch up.
Following receipt of the Statement of Intent to Foreclose in 30 days, the mortgage lender may file a foreclosure complaint if the homeowner cannot cure the mortgage default and cannot reach a resolution.
The lender submits the complaint to the Office of Foreclosure, a division of the Superior Court of New Jersey. The Office of Foreclosure will handle the foreclosure if nobody responds to the complaint. In that case, a judge in the county receives the foreclosure. For the mortgage lender (referred to as the plaintiff in the complaint) to have the legal authority to foreclose, all relevant facts must be adequately forth in the complaint.
Serving and Answering Foreclosure Complaints
The lender must personally serve the summons and complaint following the complaint filing. The lender may also mail a copy of the summons and complaint via regular and certified mail. If the lender cannot serve it personally, it may ask the court for authorization to operate through publication.
After being served, the defendant has 35 days to file an answer. The defendant acknowledges the genuine claims in the complaint and refutes the false ones.
They must send the response to the Office of Foreclosure, which will review it and decide whether it is a contesting or non-contesting response.
Speak to a Local Foreclosure Attorney
Consider speaking to a local foreclosure attorney if faced with a foreclosure in New Jersey and want information about ways to fight the foreclosure in court or avoid it with a loss mitigation option, including a loan modification.
Another great source of information on preventing foreclosure is a housing counselor to help with the modification process.
