Mortgage Foreclosure Resolution

NJ. Lawyer Explains How A Property Is Lost When Surrendered And A Bankruptcy Case Is Filed.

This blog pertains to individuals who are either unable to save their house, or do not wish to save their house from foreclosure.  Sometimes people understand that their house cannot be saved through any option, including bankruptcy. A person may understand that saving a house is too costly, not worth the monthly payment, or would prefer renting at this time.
There are various reasons for not saving a house from foreclosure. A person may be unable to save their house, due to a loan modification denial or a substantial reduction in income. Also, a chapter 13 debtor may change their intention, at any time, and decide to surrender their house, during a chapter 13 plan.
Although a chapter 7 will not allow a person to save a house that is in foreclosure, the bankruptcy filing will initially stop the foreclosure action for a short time period. It is unlikely that a bankruptcy trustee will sell a house, in connection with a chapter 7 case. If the house does not have substantial equity, the house will not be sold in the bankruptcy case.
If a chapter 7 debtor is behind with payments, the mortgage company may ask the bankruptcy court for permission to proceed with the foreclosure action. Or, in the alternative, the mortgage company will be permitted to proceed with the foreclosure action after the case is completed and the debt is discharged. Ultimately, the house will be sold at sheriff’s sale and at some time thereafter, the house must be vacated.
If a chapter 13 debtor, at any time, wishes to surrender the house, the mortgage company will be permitted to proceed with the foreclosure action, during the pending bankruptcy case. The chapter 13 bankruptcy case may continue even though the mortgage company proceeds with the foreclosure action and sheriff’s sale. As explained above, typically, the house is lost by way of sheriff’s sale, through the foreclosure process, even though the owner has filed for a chapter 13 or chapter 7 case.
Robert Manchel, the NJ. bankruptcy attorney, may be reached at 866 503 5644.

What is my responsibility if I leave my New Jersey house, that is in foreclosure.
As a result of the very lengthy real estate foreclosure action process in New Jersey, people are vacating their homes during the lawsuit. Prior to vacating their house, one should notify the mortgage company, their mortgage servicer, and the mortgage company’s attorneys, that they are vacating the house. The notice should be sent by certified mail, return receipt, letter to any and all of the mortgage company’s addresses and their attorney.
The homeowner should ensure that the inside of the property is secured by closing and locking all windows and doors. Additionally, one should close off all water lines to protect the house from water damage. Typically, the mortgage company will ask a representative to come to the house to confirm that the homeowner has vacated the property. Additionally, it is likely that the mortgage company will change the locks.
The people named on the deed continue to be the owners of the house, until after the house goes to sheriff’s sale. Prior to the sheriff’s sale, as the owner of the property, who is on the deed, the homeowner has certain responsibilities, including the maintenance of the property, pursuant to the local ordinances. As the owner of any property, one has a responsibility to properly maintain the grounds, etc. Each town has different laws that require the homeowner to care for their property in a specific manner. If the homeowner fails to comply with these laws, they may be fined accordingly. This is most likely not an issue, if a neighbor cares for the property, no one complains to the township, or the town does not strictly enforce such laws.
Typically, a homeowner continues to be liable to a person, whose injury was caused by the homeowner. In today’s litigious society, someone may argue that their injury was caused by the homeowner’s lack of maintenance of the property, etc. The liability insurance on the house should be maintained to protect themselves from such a lawsuit. However, securing liability insurance under these circumstances will likely be difficult and costly.
This blog is only a limited explanation of the homeowner’s responsibilities and should not be relied upon. Anyone in such a situation, should seek advice from a competent and experienced lawyer.
Robert Manchel, is a Lawyer in New Jersey that handles bankruptcy and foreclosure resolution. Mr Manchel may be contacted at 866 535 5655.

When must a New Jersey resident leave the house after a Sheriff’s sale.
The length of a mortgage foreclosure action in New Jersey is extremely lengthy. A person is permitted to reside in the house until the entire foreclosure action is completed.
Typically, if the balance due on the loan is more than the fair market value of the property, the house will not be sold at sheriff’s sale and the mortgage company will take back the property. This means that the county sheriff’s office will convey the property to the mortgage company by creating a deed that puts the real estate in the name of the mortgage company.
If the homeowner or renter has vacated the property at the time of the sale, than the mortgage company forwards the documents to the county sheriff, who insures that the property is vacant. However, if the homeowner or renter continues to possess the property, after the sheriff’s sale, the mortgage company must submit a writ of eviction to the court, which is entered and returned to their lawyers. Thereafter, their attorneys forward the writ to the county sheriff, who ultimately schedules the eviction with a date and notice. The approximate time from the sheriff’s sale to the eviction takes approximately 2 to 3 months, depending on the county and work load.
Please do not rely on the information in this blog. If you are in a similar situation, I strongly advise that you seek the counsel of an experienced attorney.
The Law Offices of Robert Manchel handles foreclosure resolution matters and bankruptcy in New Jersey. You may contact the office at 866 535 5655.

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.

An option to surrender a house after a foreclosure action may be a deed in lieu of foreclosure, which is a way to surrender your house, in New Jersey. This is the conveyance of the property to the mortgage company, without the need to complete the foreclosure action and sheriff’s sale. Although this option will likely save the mortgage company money, typically, in my experience, the banks create great difficulty in consummating the deal.
It may be possible for the mortgage company to provide a payment to the New Jersey homeowner, as an incentive to sign over the deed and vacate the property. Another benefit may be to remove your name from the title of the house on an expedited basis. On occasion, the foreclosure process make take years, after the owner has moved on with their life.
A burden of a deed in lieu of foreclosure, may be the time and frustration of completing the deal, which may never be accomplished. Another burden is that a homeowner must vacate the premises after signing over the deed, instead of residing in the property, mortgage free, for the entire foreclosure process.
You may contact Robert Manchel, the foreclosure resolution attorney in New Jersey, at 866-503-5655.

A foreclosure action in New Jersey, at present, takes approximately 8 months from the time the foreclosure action is filed with the court, until the sheriff’s sale. The 8 months time frame assumes that the foreclosure action was recently filed or will be filed in the future, as the previously filed actions may take years.
A homeowner is permitted to reside in the property, without making payments, until the sheriff demands that the residents vacate the property. After the sheriff’s sale, the residents must leave the property soon thereafter.
It is possible that the mortgage company will postpone the sheriff’s sale in the event that the homeowner is in the process of any of the following: loan modification; short sale; deed in lieu of foreclosure; or other similar application process. However, the New Jersey homeowner must not rely on the mortgage company requesting a postponement.
The homeowner may also postpone the sheriff’s sale by filing a bankruptcy case, which automatically stays all sheriff’s sales. A New Jersey chapter 7 will not save a property from the foreclosure action. However, the chapter 7 filing will postpone the sheriff’s sale. A New Jersey chapter 13 will postpone the sale and allow the homeowner to permanently save a house. Furthermore, each homeowner has the right to two separate two week adjournments of the sheriff’s sale.
The NJ. Lawyer, Robert Manchel, is available to discuss foreclosure issues at 866-503-5655.