There are a number of options that may be available to a New Jersey resident who is facing foreclosure. The following is a general list of a mortgage defendants options to foreclosure: actual defense to the complaint; loan modification; short sale; deed in lieu of foreclosure.
There are number of defenses, but not a number of effective defenses. A legitimate defense is that the payments were made and not properly credited to my account. There are other (legal technicality) defenses, which may not be considered by the court, such as the mortgage company does not possess the original note, or the assignment of the mortgage was invalid.
A deed in lieu of foreclosure is a procedure whereby the New Jersey homeowner deeds the property to the mortgage company and the mortgage company either refrains from filing the foreclosure action or stops the foreclosure action. The mortgage company should forgive all or a portion of the deficiency balance that is due on the mortgage. The homeowner must vacate the house at the time of the conveyance. The mortgage company’s participation is optional.
A short sale is a process, whereby the mortgage company permits the homeowner to sell the property for less than the amount that is due on the mortgage. The homeowner should request the release of all or a portion of the balance of the mortgage that is due after the sale. Again, the mortgage company’s participation is optional.
A mortgage loan modification is the modification of the mortgage. The approval of the loan modification is based on a number of criteria. The criteria varies based on the type of loan. Typically, the modification will eliminate the arrears and spread the balance over an extended time period. Also, typically, the interest rate is reduced. There are other similar resolutions that allow the homeowner to cure the arrears over a certain time period.
Robert Manchel is a New Jersey lawyer that handles foreclosure resolution matters. You may contact Mr. Manchel at 1 866-503 5655 to discuss your questions.