In New Jersey, if a foreclosed property sells at a sheriff’s sale for more than the debt owed on it, the extra money is called mortgage foreclosure surplus funds or “Surplus Equity.” Here is how Mortgage Surplus Funds work in NJ. How Are Surplus Funds Calculated? Surplus funds, or foreclosure overages, are created if the property sells at Sheriff Sale for more than the amount due to the Lender. Who Gets Foreclosure Surplus Funds? Any person or entity named in the foreclosure complaint and holding a judgment, lien, or other interest in the property (such as an heir) can apply for the funds. Onc ..read more

On January 12th, 2024, New Jersey’s Fair Foreclosure Act was amended to include a new foreclosure protection for homeowners. Specifically, the introduction of the Community Wealth Preservation Program gives families facing foreclosure the first chance to buy back their homes at sheriff’s sales. What is the NJ Fair Foreclosure Act? The New Jersey Fair Foreclosure Act (FFA) is a set of laws designed to ensure fairness and due process for homeowners facing foreclosure. Key provisions of the FFA include: Notice Requirements: Lenders must send a notice of intent to foreclose 30 days before the for ..read more

Homeowners have been falling victim to “zombie second mortgages,” which are loans that disappeared several years ago only to discover they’re back from the dead seeking all the interest and fees that accrued while the loan had been dormant. As discussed in a recent article by NPR, cases of zombie foreclosures are rising across the county due to the increase in home values. The debt collectors demand huge fees and costs and will take people’s homes if they are not paid. The NPR investigation revealed the widespread nature of this practice. We have already successfully fought against zombie mort ..read more

New Jersey Surplus Funds In New Jersey, Surplus Funds are the excess money left after a Sheriff’s Sale. If no other creditors come forward to claim the funds, they belong to the property owner(s). In New Jersey, there is a specific procedure to attempt to confirm and obtain the funds. Based upon the increase in property values, properties are going to Sheriff Sale with value above what is owed. Understanding the Sheriff Sale, surplus funds, and the associated legal processes is crucial for those who find themselves navigating this complex terrain. Laws Governing Surplus Funds in NJ New Jersey ..read more

What are Tax Sale Foreclosure Surplus Funds? If your lender has obtained a Final Judgment in a Mortgage Foreclosure or a Tax Sale Foreclosure, they may attempt to sell your home at a Sheriff Sale. The money paid by the successful Bidder will be used to pay the total amount due for the Foreclosure and costs of the Sheriff Sale. If the winning bid is more than the total amount owed, any money remaining is known as “Surplus Equity” or “Surplus Funds.” Am I Entitled to The Surplus Funds? If there are Surplus Funds after a Sheriff Sale, any other creditors with liens or judgments may apply for sur ..read more

Due to increasing property values, homeowners may be unexpectedly confronted with a long-forgotten second mortgage. Called “Zombie Second Mortgages,” these debts (and their lenders) are suddenly reappearing and threatening to take everything. What Are Zombie Second Mortgages? In New Jersey, a “zombie second mortgage” refers to a second mortgage that was thought to be satisfied, included in a work-out with the first mortgage or forgiven, but “comes back to life” years later to haunt the homeowner. Lenders may attempt to collect several years’ worth of interest by threatening to take the house t ..read more

Denial of your loan modification application is distressing, but it is not the end of the road. What Happens if a Loan Modification Was Denied? When a loan modification is denied, the original terms of your mortgage remain in effect. This means you are still obligated to make payments according to the original loan agreement. After the servicer receives and reviews a complete modification application, they must provide a clear and specific explanation for the denial, information on any right to appeal the decision, and, if applicable, a deadline for submitting additional documentation or infor ..read more

NEW JERSEY REQUIRES THAT DEFERRAL AND FORBEARANCE AGREEMENTS BE LISTED IN FORECLOSURE COMPLAINTS During Covid, many lenders offered Forbearance, or Deferral agreements, to temporarily pause or reduce loan payments. At the end of the Forbearance or Deferral Agreement, arrangements must be made to begin monthly payments. If a new arrangement cannot be reached, the lender will file a Foreclosure Complaint. Some lenders are not including the Forbearance or Deferral Agreements in the Complaints, and this violates New Jersey Court Rules. If this occurs, the Foreclosure Complaint should be amended an ..read more

Facing foreclosure is a stressful and daunting experience for homeowners. New Jersey homeowners have specific rights and timelines to be aware of when trying to halt the foreclosure process. Whether it’s exercising the right to cure the default, challenging the foreclosure in court, or even contesting a Sheriff Sale, understanding the timeline and your rights can make a significant difference. Always seek local professional guidance to navigate the complexities of New Jersey’s foreclosure laws. When Is It Too Late to Stop a Foreclosure in New Jersey? In New Jersey, the earlier you take action ..read more

We are a New Jersey Consumer Defense Law Firm that focuses on Defending Foreclosures and helping our clients get Mortgage Loan Modifications. New Jersey Foreclosure can make you feel like you’re caught in a storm with no clear way out. However, many people have been able to stop foreclosures on their home. We can help you understand your options. What is Foreclosure? Foreclosure is a legal process where a lender attempts to recover a loan balance from a borrower who’s stopped making mortgage payments. It can take a few months, or over a year, depending upon the actions of the lender and the h ..read more