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

The United States Department of Housing and Urban Development (HUD) has expanded the Federal Housing Administration (FHA) COVID-19 Recovery Loss Mitigation Options to include all borrowers in default or imminent default, regardless of whether they experienced financial hardship due to the COVID-19 National Emergency or obtained a COVID-19 forbearance. This applies to both owner-occupants and non-owner-occupants. The COVID-19 Recovery Partial Claim Amount has also increased to 30% of the borrower’s unpaid principal balance as of the date of default of the first partial claim. The newly expande ..read more

What Is An Offer in Compromise? An offer in compromise is a type of federal tax lien resolution that is an agreement with the IRS that settles your liabilities for less than the full amount owed. Note that this option is usually only available to those who cannot repay their debts through another method, such as installments. Flexible Offers in Compromise are a key part of the IRS Fresh Start Program, started in 2011 to help struggling individual and small business taxpayers clear up their tax issues. Who Qualifies for Offers in Compromise? There are two hurdles in the offer in compromise pro ..read more

Many people believe that they cannot sell their home if it is scheduled for a Sheriff’s Sale or is being foreclosed, but the truth is that, as long as they have equity, they can sell their home to stop a Sheriff’s Sale. Do I Have Home Equity? Home equity is the difference between what you owe for mortgages, liens and judgments, and what someone is willing to pay for the property. You can add up the amounts you owe for any mortgages, liens and judgments, and if you can sell the property for more than the total, you have some equity. The Equity in your home is yours, until the sheriff sale is c ..read more

If you have an IRS tax debt and want to resolve it for less than the total amount due or you need special payment arrangements, the IRS will require you to provide a budget to show how much you can afford to pay each month. As set forth in the internal revenue manual, the IRS will allow you to maintain your normal monthly expenses if you can show that they are necessary for your “Health and Welfare” or necessary for “Production of Income.” In other words, the IRS will not ask you to pay more than you can afford while maintaining your essential needs. At our office we do a thorough review of y ..read more