If you are behind on your mortgage payments, you may be facing a foreclosure action by your mortgage lender. The foreclosure process in New Jersey is handled by the Foreclosure Unit of the Superior Court. The time it will take for a mortgage lender to file a foreclosure complaint depends on the specific mortgage company.
If your mortgage payment is due on the first day of the month, you are past due on the second day of the month regardless of whether the mortgage company allows you until the 15th of the month to make a payment before charging a late fee. Most mortgage companies will not file a foreclosure complaint if you are only one payment behind.
In most cases, the mortgage company will call you several times trying to collect the payments and send several letters warning of further action. The mortgage company eventually retains an attorney to send letters demanding payment of the past due amount before filing a foreclosure complaint. Therefore, it could be a few months or much longer before the mortgage company files a foreclosure complaint. It just depends on how quickly the mortgage company wishes to act. However, once the foreclosure process beings, it proceeds along a predictable timetable.
What Happens After the Foreclosure
Complaint is Filed?
Once the foreclosure complaint is filed with the Superior Court and served on the property owner (defendant), the defendant has 35 days to respond to the complaint. If the defendant fails to respond, the mortgage company requests that the court hold the defendant in default and proceed with the Writ of Execution for the Sherriff’s Office to sell the property at a foreclosure sale.
Even in an uncontested foreclosure action where the defendant is in default, it typically takes eight to nine months to complete the foreclosure process due to statutory time periods and the court’s schedule. After the home is sold, the defendant has 10 days to redeem the property by paying the full amount of the loan plus any costs and fees. If the defendant does not redeem the property within 10 days, the foreclosure sale becomes final.
Stopping a Foreclosure by Filing Bankruptcy
You can stop a foreclosure action by filing a bankruptcy case. The automatic stay provisions of the Bankruptcy Code prohibit a mortgage lender from continuing a foreclosure action once the bankruptcy case is filed. If the debtor files a Chapter 13 case, the past due mortgage payments are included in the debtor’s bankruptcy plan. The debtor resumes paying the regular mortgage payments to keep the home.
Contact an Experienced Mount Holly Bankruptcy Attorney
Personal Approach, Professional Service, Affordable Payment Plans
The Law Office of Travis J. Richards, LLC is a full-service Mount Holly bankruptcy law firm focused on Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, debt consolidation, credit repair, tax liens, student loans, and foreclosure. We represent clients in Burlington County and throughout South Jersey.
Contact our office at 609-267-5297 to schedule your free consultation to discuss bankruptcy and non-bankruptcy alternatives. You may also use our convenient online contact form and one of our friendly, professional staff members will contact you to answer your bankruptcy questions and/or schedule a free consultation with Travis J. Richards.