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Foreclosure Timeline in NJ

Discussion in 'Foreclosures' started by Confused in NJ, Jan 5, 2012.

  1. Confused in NJ

    Confused in NJ LoanSafe Member

    I live in NJ we had a Countrywide mortage in 2006 that was sold to BOA. In December of 2010 we had to file Chapter 7 bankruptcy due to the downturn of the economy. BOA was suppose to reaffirm our mortgage debt, but never did. Once we relized that our mortgage was discharged in our bankrupcy we stopped making payments. It has been 12 months since we have made a payment. We have not received a default notice, and have only recently been offered $3000 for a Deed in lieu Foreclosure. Does anyone know the timeline for us to receive a foreclosure notice? I have friends in NJ that have gone 2-3 years without making a mortgage payment and they have still not received a foreclosure notice. Also, once a foreclose notice has been received how long does it take to go through the court system? I have also heard that if the bank does not posess the proper paperwork for the property, that the NJ court system cannot foreclosure. Is this true?
  2. Maurice Bedard

    Maurice Bedard Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    A mortgage cannot be discharged in bankruptcy.

    Banks are doing this to help manage homelessness and blight plus their accounting. Your mortgage and house is being used as a pawn on their books and they will decide when and how to foreclose based on these internal figures. Hence, there is no way to tell when and what will happen. Just that it will and it is a matter of time.
  3. Confused in NJ

    Confused in NJ LoanSafe Member

    Thanks for the fast reply. If a mortgage cannot be discharged in a chapter 7 bankruptcy, why is it showing on our credit report as discharged, and is no longer reporting? Are we still responsible for the mortgage?
  4. Maurice Bedard

    Maurice Bedard Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    My pleasure and sorry please let me clarify.

    What i meant is that it is discharged, but you are not for the mortgage holder is free to repossess the collateral at anytime. You can also give the home back to the lender by surrendering it on your Statement of Intentions that should have been explained to you by your BK lawyer. In that event, the lender gets the home back, and any deficiency that remains is discharged through the bankruptcy.

    If you do not wish to give your home back to the lender, you would need to reaffirm the mortgage and negotiate a loan modification.

    A Chapter 7 bankruptcy is not a great solution and are for people who cannot keep making the mortgage payments and wish to discharge other large debts and start out fresh.
    Last edited: Jan 5, 2012
  5. acesfull

    acesfull LoanSafe Member

    Confused in NJ

    If you are 12 months behind in your payments and have not received a default notice there is a real good chance the paper trail is missing on your account, also the chapter BK 7 you filed may have elevated your foreclosure case to a federal court. These are some unique secenarios. However in this crazy mortgage/foreclosure mess anything is possible.

    Getting onto the NJ foreclosure process. Yes there are examples of people living in there homes for 24-36 months after the lender files the foreclosure action. The process is moving along somewhat quicker now then in the pass however a homeowner by simply responding to a foreclosure complaint even without an attorney could stay in there home for at least 8-10 months and beyond.

    I would not contact your mortgage lender at this point. You do not want some ambious clerk searching for your files.
    When and if they contact you, you could then apply for Modifications etc.
    Please stay calm the whole foreclosure process takes very long in NJ.

    Getting back to your chapter 7 BK for a moment. I am guessing you had no equity in the property? Therefore the Trustee did not force a sale of the property? Also it is quite possible that the bank or trust that you were paying your mortgage to each month actually had NO proof during the BK process that they were in fact the owners in due coarse on the property and had in fact no right to collect any funds from the BK trustee.

    I would sit back and enjoy the rent free living and stach away some cash. DO NOT CONTACT THE BANK. Let sleeping dogs sleep.

    I hope this helps a little.

    Best regards

    NJ- 14 Months
    NJ in trouble likes this.
  6. Jeffrey L. Shurtliff

    Jeffrey L. Shurtliff LoanSafe Member

    Also even though you have filed ch7 the bank will come forward to offer you a work out as they will go through your finances after the Bankruptcy. Some will require you to reaffirm and some will not. It also depends on the language in the ruling lifting the automatic stay. I agree with aces continue living there and save your money in an unaccountable way.
    Some states such as mine have modified the foreclosure laws to make it mandatory to offer a work out before sheriff's sale.
  7. Confused in NJ

    Confused in NJ LoanSafe Member

    Thanks for the information. After originally putting almost $100,000 down on our house, the house is underwater over $50,000. I also felt that maybe our paperwork was misplaced by either Countrywide or Bank of America. Months before our bankruptcy we asked for verification that BOA had posession of our paperwork and deed, but they never produced it. We do not contact the bank at all, we just want to let "sleeping dogs lie." You gave me some valuable input and I really appreciate it.
  8. AloneInTheWilderness

    AloneInTheWilderness LoanSafe Member

    I am very interested in this as well as I am in NJ and will be filing for CH7 sometime in July. Our home is underwater and because of that we will not reaffirm the mortgage. After the mortgage is discharged we are contemplating stopping payment as the OP did since we don't want to throw money away on a home that will never be worth what we owe. An attorney (not on retainer-just a colleague I spoke with) advised us that we could probably stay without paying for up to two years, banking our money and when we're finally forced to leave we can rent until we qualify for FHA financing. My main concern is that a small local bank holds our mortgage-not a huge behemoth like BoA, WF, etc...obviously they hold a small fraction of the mortgages the big banks do, so does that mean that they'll be able to foreclose faster? Or is the logjam in the court system since NJ is a judicial state? Finally, we are paying PMI-does that make any difference regarding how fast or slow foreclosure will happen?
  9. Confused in NJ

    Confused in NJ LoanSafe Member

    Alone in the Wilderness,
    I wish I had answers to your questions. I have heard that the court system in NJ is backed up over a year with foreclosures. We are in Atlantic County and when I go on our township's website, I see many properties on the sheriff's sale list, but most of the sales have been postponed. Our BK attorney advised us not to reaffirm since we were underwater. I am not sure if the smaller banks foreclose quicker than the larger banks. Hopefully someone on this site can advise you. I wish you luck!
  10. AloneInTheWilderness

    AloneInTheWilderness LoanSafe Member

    Thanks for the reply-from what I've read, eight months is a pretty standard timeline (If I'm understanding it correctly) under normal conditions (ie: when there's not a record number of foreclosures moving through the courts)-so we'd have at least that long I think. We could save quite a bit of money in that amount of time and I've already found homes in our general area that could be rented for about $400 less than what we were paying in mortgage and taxes per month. It may actually work to our advantage if it only takes eight to ten months because the sooner the foreclosure goes through, the sooner we'll be able to start over and buy another home (FHA requires a 3 year wait from what I hear) before my daughter starts Kindergarten. Our only goal is to once again be rooted in a community before she starts school so that we don't have to move her again. Good luck to you as well.
  11. mattimay

    mattimay LoanSafe Member

    Hi -
    i have been through this process in nj /bank of america (orig cw)
    - stopped paying in 2008 and began mediation in nj court system in june 2010 that day would have been packing day if we had not had a hamp application in just days before.

    received a HAMP perm mod about a year later in July 2011 after 4 more mediation appointments

    MEDIATION was the key for us - if u dont want to stay in your home than you'll be out of it shortly after that first mediation...but if you want to stay thats when trial payments or forbearance plans will begin....

    hope that helps a little -- after the foreclosure begins - just apply for mediation either way b/c they are really backed up.
    good luck!
  12. acesfull

    acesfull LoanSafe Member

    Hi Mattimay

    Good job in staying in your home. Did you actually file a reply/answer to the foreclosure attorney's complaint? If yes, what was your defense of the lawsuit? Also did you immediately agree to mediation on your own or was the mediation court ordered?

    What type of modification did you receive? Hamp? in house ?

    Was the original foreclosure complaint dismissed by the plaintiff? if not how do you intend to proceed? Is the litigation on going even with your modification terms in place?

    I am now 18 months no payments( Hampster Wheel Player) I am currently in litigation however I have no desire to go thru mediation, I used The Standing defense and presently getting ready to file my motion for summary judgment.

    Please forgive all my questions, I am very interested in communicating and sharing ideas and knowledge and experiences with other LS members from New Jersey and I am always trying to learn so that I can continue my fight against the foreclosure mill attorney's.

    Thank you for your time and I look forward to your reply. If you have any questions in regard to the NJ court system, please don't hesitate to ask. I will try to answer as best I can. I have many hours of research on the subject.

    Best regards

    Nj-18 Months
  13. walkernj

    walkernj LoanSafe Member

    Very interested to hear the timeline in NJ these days; I have heard over 900 days at this point. This is the second month with no first mortgage payment, I don't know how many for the second. Both were discharged through a CH7 in May 2010. We were paying the first up until last month, but since the value just keeps dropping - purchased for 450k in 2005, refi'd in 2006 bringing balance to 480k. Value today at zillow - 390k; town assessment for fair market value - 330k. I know if the house went on the market it would go for maybe 350.

    This house needs a fair amount of work to boot - so I am not dumping $$ into what amounts to a rental right now.

    Just trying to figure out how long we have here. The second sent out an NOI in the beginning of April, which is what prompted us to make a decision to just get leave this mess and take advantage of the fresh start that the CH7 will give us. Rent in my area may be a little more than what we pay for the first, but we don't have to worry about repairs, outside maintenance or any of the other stress owning a home in this day and age brings.

    Only thing we have heard from the first is a notice that they haven't received the April payment a couple of weeks ago.

    I also would like to know if the timeline starts from the day the first payment isn't made or from when you actually start to receive the official notices from the bank - like the NOI.

    Thanks in advance!
  14. mattimay

    mattimay LoanSafe Member

    Hey Acesfull --
    i was not in control of a lot of this process because i am not the actual homeowner - but i did all the research to help my family stay in their home - i didnt know the house was going to be lost until 4 weeks before mediation... so my answers are limited...

    Mediation is optional in nj - i am pretty sure you have to apply for a date - had a long time between being foreclosed upon and going into mediation. - about 7 months -- (there were no payments for 24 months including those 7...)

    the forclosure was dismissed and we got HAMP -- the reason i began to post here was because we received a intent to foreclose notice on the second mort. and wasnt sure what was going on -(although i think i get it now ) but no litigation is going with the first mortgage.

    i will say that mediation was a pain to go through, but because ofthe banks inability to cooperate and our consistent (and on time) trial payments and because we documented EVERYTHING the mediator gave the bank the choice - get a modification offer or youll go see the judge in 30 days but within 2 weeks we had a hamp offer.

    also id like to note that the HUD person seemed to have had more interest in helping the bank than us. so to anyone contemplating mediation - trust no one...you are your own best expert!

    my neighbors also stopped paying their mortgage-- the did a short sale - they did'nt pay for 16 months before they were sent packing... (2009/2010)

    To those people who are not paying and dont want to stay - my advice is to not think about how long - just SAVE as soon as you stop paying your mortgage - because time goes by fast, and when the time comes that you have to pay again - its VERY hard parting with that "extra" cash you've gotten use to.... thats why so many people bail on their mods (imo)

    hope that helps!
  15. PatZZ

    PatZZ LoanSafe Member

    True. People also bail on the mods for fear they will give over a lump sum amount required for the mod and then end up not keeping up with the mod monthly payments. In that case, the homeowner would have given up their loot for no reason. Gotta be REAL CONFIDENT that mod will work before rolling over for it.
  16. Colnago NJ

    Colnago NJ LoanSafe Member

    As a judicial state, there are lots of opportunities to add time to the foreclosure process in NJ. While you are not going to get a "free" house from fighting, you can add significant time to the process by fighting a bit. If you are not paying a mortgage during that time, the cost savings can be substantial.

    If you are looking into bankruptcy, then consider filing at the beginning of the foreclosure process. If you are underwater on your house, and have other debts then BK can make sense. By filing at the beginning of the foreclosure process, any money you save after your filing (assuming a chapter 7 BK) you can keep. The BK will wipe out your personal liability for the mortgage. You will be protected against a deficiency judgment and also against taxes on forgiven debt. The bank can and will, eventually, foreclose on the house to collect their collateral.

    The important thing to do is to read and respond to all of the foreclosure notices. The first will be a notice of intent to foreclose (NOI). The noi must contain certain data and will give you 30 days to cure the default. You don't have to respond to the NOI, as it is informational. Use it to start a file.

    Assuming that you did not cure the default, the bank's lawyers will file a complaint. The complaint starts the foreclosure in the NJ court system. The complaint will be big and scary. It says that you are not paying and the bank is going to take back your house a according to the terms of the note. You have, I believe 30 days to answer the complaint, which you should do. Legal services of NJ has an adequate response document on their webpage. Do not agree with the complaint; you need to make arguments as to why the complaint is wrong.

    The purpose of responding is for the Office of Foreclosure to mark your case as contested. If your case is contested, it must go through more judicial review before it can proceed. This adds time, which is extremely valuable to you as you are not paying a mortgage. Each month is worth $x,xxx to you! An uncontested case goes back to the Office of Foreclosure for processing. I read that 95% of cases in NJ are uncontested. Be one of the 5%!

    Once you have filed your response to the complaint, follow up on discovery. Discovery is the process where the adversaries exchange information. If you don't respond with the information then you can make them through the court. Again, this can add time, particularly if the bank is unresponsive with the discovery requests. You will also need to respond to their discovery request.

    After discovery the bank will file for summary judgement. This is another scary document saying why the court should let them win. It is where the battle is fought. Again, you should file a response, even if it is weak. Ask for an extension of time to file your response. The same reason applies: delay. The court will set a date for a hearing to consider the summary motion. Ask for an extension of the date. At the hearing, you will probably lose, but that is ok. You knew that you would lose because you have not paid your mortgage. However, you have added time to the process and time is money in your pocket.

    Losing the summary judgement means that your case is marked as uncontested and goes to the office of foreclosure. I believe that this office is backed up. Further, the attorney for the bank has to affirm some specific facts with this next packet of documents. Make sure that the affirmations match what is required.

    You will get another couple of chances to delay even when it is in the Office of Foreclosure. The bank will send a notice asking if you can cure the default within 30 days. Wait until the due date for the reply and say ,"yes, I can cure the default in 30 days." You just bought yourself another month and $x,xxx in your pocket.

    Once the foreclosure date is set, request mediation. The court will likely grant your request and the sale date will be pushed back. Once a date is set, request an extension of the date. Take part in the mediation but drag your heels with providing information. Ask for the world in mediation and see what you get. It doesn't have to be a lower payment. It could be cash for keys or a long-term discounted lease. If you succeed here, great. If not, you have once again added time to the process.

    Once the sale is scheduled, you can request two 2 week adjournments through the sheriffs office. That is another month. Once the sale happens, I believe you have a 2 week rescission period where you could pay 100% of the loan balance to keep your house. Assume that you don't pay, you are still in the house if you want to be. They now have to evict you to get you to move. You should be ready to move at this point. If you play your cards right you can get cash for keys. You could probably add another 2-3 months if you fight the eviction in court.

    The bottom line is that if you fight them and make them justify themselves every step of the way you can add significant time to the foreclosure process. I am not certain how much time,as a lot depends on the efficiency of the opposing attorney. Banks also delay cases themselves, as they don't seem to want to flood the market with foreclosures all at once.

    I am not an attorney, so everything I said above may well be inaccurate and just plain wrong. Research this yourself, talk to your own attorney and draw your own conclusions.
    KimNJ likes this.
  17. NJGuyTGP

    NJGuyTGP LoanSafe Member

    Based on this NJ foreclosure timeline I saw on the internet: http://www.state.nj.us/dobi/njhope/legalservices_foreclosetime.pdf
    I have a couple of questions:

    If I did not reply 14 days after the notice of Entry of Final Judgement, will I still be getting a Final Judgement in writing from the BK court.

    Will I get notified regarding the Writ of Execution?

    I'm trying to keep track of my timeline and be prepared and not end up surprised. Thanks for any help.
    airahcaz likes this.
  18. PatZZ

    PatZZ LoanSafe Member

    You will be notified of every filing because there are notice requirements.

    But you don't have to rely on the mail, or missing the mail, to see where your case stands. The court records are public information. Go to this NJ court site: ACMS Public Access

    Log in, enter your docket number and see what is happening with your case.

    Good luck.
    airahcaz and learn't like this.
  19. Cnochur

    Cnochur LoanSafe Member


    I'm having trouble understanding something- is it better to start the HAMPster wheel, or to not contact the bank and fight them in court? If so, how does one fight in court? My particular situation is an underwater (30-60k) mortgage that I want to walk from. I don't qualify for bankruptcy, not CH7 anyway, because I have a decent job and a wife who works. My main goal is stay in my house as long as possible, which I though meant playing HAMPster games. Now I hear I shouldn't do that; that I should just "fight the bank in court" even though I'll lose, because the bank can't proceed on the foreclosure the way they can during a loan mod application. What's the deal?
  20. TomEason

    TomEason LoanSafe Guide

    Hi Cnochur

    FYI, just I answered your similar question in another thread. However, since I've never owned RE in your state, your question is this thread is certainly appropriate, and Acesful is the best person to ask about FCs in NJ!

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