Avoiding Home Foreclosure
Feb. 23, 2023
In New Jersey, a foreclosure can be triggered by a variety of events, including failing to make payments, defaulting on a loan, or violating the terms of a loan agreement. If a homeowner fails to make mortgage payments for 30 days or more, it is considered a default. Additionally, if a homeowner fails to pay property taxes or homeowner’s insurance, the mortgage lender can begin the foreclosure process. Finally, homeowners can also be foreclosed upon if they fail to maintain their property in accordance with the loan agreement. In every case, the mortgage lender has the right to pursue foreclosure as a way of collecting unpaid debts.
Foreclosure is a difficult situation for any homeowner to endure, but there are steps one can take to avoid it. Here are some tips to help keep your home from foreclosure:
Communicate with your lender. If you’re falling behind on payments, call your lender as soon as possible to explain the situation and work out a plan to get back on track.
Get help. Ask your lender if they have any loss mitigation programs that can help you catch up on your mortgage payments.
Look into refinancing. Refinancing can help lower your payments and make them more affordable.
Consider a loan modification. A loan modification changes the terms of your loan to make it more affordable.
Don’t ignore the problem. Ignoring the problem will only make the situation worse. The longer you wait to take action, the more difficult it will be to save your home from foreclosure.
Get legal help. If you’re unable to make payments or communicate with your lender, it’s time to seek help from a legal professional. An attorney can help you understand your rights and explore all available options.
No matter what, it’s important to take action as soon as possible. The sooner you act, the more likely you are to avoid foreclosure.
Under New Jersey law, the statute of limitations for foreclosures action is six (6) years from the date the cause of action accrues. The cause of action accrues on the date of the promissory note and/or mortgage, or in some cases, the date of the default on the loan. Furthermore, the lender must bring the action within two (2) years after the borrower's last payment on the mortgage loan or within six (6) years of the date of the promissory note, whichever is later. Generally speaking, the lender must also give the borrower written notice of the foreclosure action no less than thirty (30) days before filing it.
If the lender does not file a foreclosure action within the applicable statute of limitations, the borrower may have a defense against the foreclosure. It is important to note, however, that this statute of limitations only applies to a foreclosure action, and the borrower may still be liable on the debt even if the lender cannot pursue a foreclosure. Therefore, if a borrower is facing foreclosure in New Jersey, it is important for them to seek legal advice as soon as possible to determine their rights and best course of action.