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
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What is the NJ Fair Foreclosure Act?
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
Zombie Foreclosures Are On The Rise
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
Important Update for New Jersey Homeowners: New Sheriff Sale Notice Requirements
Important Update for New Jersey Homeowners: New Sheriff Sale Notice Requirements
As of January 12, 2024, New Jersey has changed the requirements for notice of the Sheriff Sale. The envelope must state that it contains notice of the Sheriff Sale.
What’s Changed?
N.J.S.A. § 2A:50-64 now requires that any notice regarding the sale of a
How to Claim Surplus Funds in NJ
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
Am I Entitled to Tax Sale Foreclosure Surplus Funds?
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
New Jersey Tax Foreclosure Updates (as of March 2024)
Each year, more than 1,000 properties in New Jersey proceed through tax sale foreclosure. Many property owners lose significant surplus equity because the New Jersey Tax Sale Law provides no method to preserve their surplus equity. Once a Final Judgment is entered in a tax foreclosure, the Plaintiff owns your property, and you lose all
How to Fight Zombie Second Mortgages
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
My NJ Loan Modification Was Denied. Now What?
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.
NJ Law Requires Deferral and Forbearance Agreements to be Listed in Foreclosure Complaints
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