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Update as of 6/14/21

Jamal Romero, Esq: Has the pandemic left you without a job and you can’t afford to move. Have you ever wondered if you can stop an eviction proceeding? The following information can assist you if you received an eviction notice.

The price of living can sometimes be high, and often we will be faced with eviction, something that everyone in New Jersey wants to stop. How does one stop an eviction when it starts? This is the question every single renter has asked, especially under times of financial distress. Maybe you were laid off. Maybe your rent is increasing. Either way, your landlord has sent you an eviction notice, one that demands your immediate attention.

It is highly possible that you are in the middle of an eviction right now, facing off against odds that might leave you stranded and without a home. In this event, what are some measures you can take to avoid eviction? And is bankruptcy a solution that might help you?

When you are behind on your mortgage payments, it is only a matter of time before you ask how long you have before the foreclosure process begins.

In New Jersey, when you take out a mortgage loan, your property serves as collateral for that loan. If you fail to meet your due payments, your home may be taken from you by your lenders and creditors. Your lender or creditor has a lien on your property, which makes them legally justified to foreclose on their collateral.

That means you might lose your house and home when the lender – with the assistance of the county sheriff -- sets out to sell your property to pay off the outstanding debt to the lender that you have accrued. This is referred to as a Sheriff Sale. It is the final step in the process known as foreclosure. From start to finish, how long does a foreclosure take in the state of New Jersey?

Property is the ultimate form of collateral. In New Jersey, when you take out your mortgages and pay your taxes, you offer up your property and home as collateral in case you fail to meet said payments. You have title to the property but the lender or creditor has a lien on the property. If you cannot pay your lender, then said lender will be within their legal rights to go and collect on their collateral. That means you might lose your house and home when the authorities – led by the county sheriff -- set out to sell our property. This process, referred to as a sheriff sale, is a means to pay off the outstanding debt to the lender that you have accrued.

However, each state conducts sheriff sales in a different manner. The rules that govern each sale depends on the state the property is owned in. Sometimes, court decisions or changes in the laws drastically alter how sheriff sales are conducted, as well as how this alters how sales can be conducted.

Such is the case for New Jersey. The rules for adjourning sheriff sales changed significantly on July 28, 2019, when the New Jersey statute was modified impacting the rights and options of borrowers under New Jersey foreclosure law. N.J.S.A. 2A:17-36, governs the rules on adjournments of sheriff sales and provides:

Update as of 6/14/2021

Jamal Romero, Esq: The Moratorium is almost over which means a lot of you are thinking what happens next. Will there be a new program that allows me to roll my forbearance payments to the end? What steps should I take to ensure my house does not get sold at a foreclosure sale? 

This blog might answer most, if not all of your questions.

Most homeowners don’t pay enough attention to educating themselves about the foreclosure process. Look at it this way, if you’re buying a home and don’t know the foreclosure process and your options, you’re like a soldier without a rifle - you are flying blind my home-owning friend. Educating yourself about the foreclosure process and your options should be one of the first things a homeowner should do before or after buying a home. This blog will explore the foreclosure process and how you could save your home or investment property through a bankruptcy.

Foreclosure is the judicial process by which a lender takes title and possession to property after a homeowner stops making mortgage payments. Generally, a “mortgage” is comprised of a promissory note (the “Note”) and a mortgage (the “Mortgage”). The Note memorializes the money lent to the homeowner to fund the purchase, the terms of repayment, and the borrowers promise to repay the money lent. The Mortgage is the “security” for the Note i.e. it gives the lender the right to take the property if the Note isn’t repaid. The Sheriff then sells the property at public auction and the money received is given to the lender as repayment for the Note. New Jersey is a judicial foreclosure state, meaning the lender must go through the courts to foreclose upon a property. A lender cannot resort to “self-help” by changing locks or just showing up and demanding the owner vacate the premises. 

Many people file for bankruptcy to protect their real property from being foreclosed on. There is a specific section within the Bankruptcy Code that mandates that creditor collection actions against property of the debtor must cease immediately upon the filing of the bankruptcy. This blog will explore that section of the bankruptcy code and how parties can avoid a creditor obtaining relief from that section.

The foreclosure process can be complicated and seeking legal representation is always recommended.  Sometimes borrowers ignore the foreclosure timeline until their property is sold at a sheriff sale.  The borrower, however, should have been properly served with the notice of sale.  The sale is the last step in the foreclosure process and effectively divests the ownership interest into the sale purchaser.  What happens if the borrower seeks to save their property after the sale? This is a possibility, but places a large burden on the homeowner.   

Many people who own real property through a single member limited liability company or sole shareholder corporation tend to think of the real property being owned by them individually. However, the Bankruptcy Code has different rights for individuals who own real property than entities. This blog will explore how the Bankruptcy Code affects an entity whose sole asset is real property and things to consider if you are considering putting such an entity into a bankruptcy case.

If you own a home and you are in financial turmoil, you may be wondering what will happen to your home if you file for bankruptcy. For many, the primary concern that they have when entering the bankruptcy process is that their home is protected. This blog will explore the implications of filing for personal bankruptcy in a chapter 7 or chapter 13 on an individual’s residential real property.

As an aside, in either chapter 7 or chapter 13 a debtor would need to continue to pay their mortgage and property taxes in order to avoid an eventual foreclosure.

Real estate foreclosure in New Jersey has many technical requirements and many different time frames to keep track of whether or not you are the lender or the borrower.  Sometimes when title defects are discovered during the foreclosure process, it is sometimes best to dismiss the action without prejudice and re-file to ensure clear title.   A clear title is a property title without any kind of lien or levy from creditors or other parties and poses no question as to legal ownership.  However, not all errors will necessarily cause the foreclosure to be defective.  This post describes some, but not all, of the potential issues that may arise as well as some solutions to these problems.