The start of a new year is usually filled with talk about resolutions and fresh starts. But for many homeowners in Central and South Jersey, the new year brings a familiar, sinking feeling in the pit of the stomach. That feeling comes when you check the mail and see another envelope from your mortgage lender or a notice from the township about unpaid taxes. If you are starting this year wondering if you will still be in your house by next Christmas, we want you to know that there is a way out.
At Brenner, Spiller & Archer, our NJ real estate attorneys have spent over 35 years helping families throughout the region keep their keys. Whether we are negotiating a complex modification or utilizing federal bankruptcy laws to stop a sale in its tracks, our goal is to provide a path forward that works for your unique situation. We know that when you are facing foreclosure, you are not just worried about a building. You are worried about your kids’ school district, your commute to work, and the place where you feel safe.
This is your roadmap for the new year. Whether you are dealing with a mortgage company that won’t listen, a tax lien investor knocking on your door, or a house that is simply worth less than what you owe, we have the tools to help you take control.
The New Jersey Foreclosure Process: Where Do You Stand?
New Jersey has one of the longest foreclosure timelines in the country, but that is actually a good thing for homeowners. Because we are a judicial foreclosure state, the bank cannot just lock your doors overnight. They have to play by the rules of the court.
The process usually follows a specific path. It starts with a Notice of Intent to Foreclose. This is the bank’s way of saying, “We noticed you missed payments, and we are getting ready to sue.” If you are at this stage, you are in the best position to fix the problem.
If the clock keeps ticking, the lender files a formal Summons and Complaint. This is when many people panic and ignore the mail. That is the biggest mistake you can make. In New Jersey, you generally have 35 days to file a response. If you don’t respond, the bank wins by default. When we step in, we make sure the bank is held to their burden of proof. We look for errors in how they handled your loan or how they served the papers. Every day we gain is another day you have to find a permanent solution.
Stopping the Sheriff’s Sale: The Final Countdown
If your case has progressed to the point where a Sheriff’s Sale has been scheduled, you might feel like it is game over. It is not. We frequently help clients stop sales at the very last minute.
In New Jersey, you have the right to two statutory adjournments of a Sheriff’s Sale. These are two 30-day stays that you can request from the Sheriff’s office for any reason. They give you a total of 60 days of breathing room. We often use this time to finalize a loan modification or prepare a bankruptcy filing.
If those 60 days run out and the bank is still pushing for a sale, we can petition the court for an emergency stay. The goal is always to keep the power in your hands rather than letting the bank dictate your future.
The Danger of Property Tax Liens
While mortgage companies are the usual suspects in home loss, property tax liens are a silent threat in New Jersey. If you fall behind on your taxes, the municipality doesn’t wait long. They sell a tax sale certificate to an investor.
This investor pays your taxes for you, but they aren’t doing it out of the goodness of their heart. They do it because they can charge high interest rates on that debt. If you don’t pay them back within two years, they can start a tax foreclosure. Unlike a mortgage foreclosure, a tax foreclosure can be much harder to fight if you wait too long.
One of the best ways we help clients deal with tax liens is through a Chapter 13 bankruptcy. We can take that tax debt, stop the interest from spiraling out of control, and roll the balance into a five-year repayment plan. This removes the investor’s power and lets you pay what you owe on your own terms. Even if the foreclosure process has moved further along, recent updates to New Jersey law now provide even stronger protections for your “surplus equity.”
This means that if your home is eventually sold, you have a much better chance to reclaim the money left over after the tax debt is paid. At Brenner, Spiller & Archer, we work to aggressively protect that cash value to help safeguard the wealth you have built in your home.
Is a Short Sale the Right Move for Your New Year?
Sometimes, the best way to save your financial life is to move on from a house that has become a weight around your neck. If you owe $400,000 on a house that is only worth $320,000, you are underwater.
A short sale is when the lender agrees to let you sell the home for the current market value and accept that lower amount as full payment. This can be a great option if you are ready for a fresh start in a more affordable home. That being said, you have to be careful. Some lenders will try to come after you later for the deficiency, that $80,000 difference.
When we handle short sales for our clients, we fight for a deficiency waiver. We want to make sure that when you hand over the keys, you are truly walking away debt-free. We don’t want you starting your new year with a zombie debt following you into the future.
Chapter 13: The Homeowner’s Most Powerful Tool
If you want to keep your home, Chapter 13 bankruptcy is often the most effective tool we have. The moment we file your case, something called the Automatic Stay goes into effect. It is like a legal shield that drops down over your house. The bank cannot call you, they cannot mail you, and they absolutely cannot sell your home at a Sheriff’s Sale while the stay is in place.
Chapter 13 allows you to cure your mortgage arrears. If you are $30,000 behind on your payments, the bank usually demands that you pay it all at once. In Chapter 13, we take that $30,000 and spread it out over three to five years. You keep making your regular monthly payment, and you pay a small piece of the back-due amount each month. By the end of the plan, your mortgage is current and the foreclosure is gone.
Stripping Second Mortgages and Junior Liens
For some South Jersey homeowners, the problem isn’t just the main mortgage. It is the Home Equity Line of Credit (HELOC) or a second mortgage taken out years ago.
In a Chapter 13 bankruptcy, we may be able to perform what is called a lien strip. If your house is worth $300,000 and you owe $310,000 on your first mortgage, that second mortgage is no longer secured by any actual value. We can ask the court to treat that second mortgage like a credit card debt. In many cases, this allows you to pay back only a small fraction of that second loan and have the rest of it discharged entirely once you finish your plan.
Loan Modifications: Cutting Through the Red Tape
We hear the same story from clients every week: “I sent the bank the documents they asked for, and now they say they never received them.”
Loan modifications can be a great way to save a home by lowering your interest rate or extending your loan term. But the banks make the process intentionally difficult. We use our experience to act as your advocate. We know the magic words to use with loss mitigation departments and how to utilize the New Jersey Foreclosure Mediation Program to force the bank to the table.
Mediation is a powerful tool where a neutral third party sits down with us and the bank’s attorneys. It forces the lender to actually look at your application instead of just giving you the runaround.
The Brenner, Spiller & Archer Advantage: Local Roots Matter
When you are looking for a lawyer to help save your home, you might see ads for big national firms or foreclosure consultants who promise the world. The problem is that those people don’t know the judges in Camden or the staff at the Freehold courthouse.
We are a local firm. We know the South Jersey and Central Jersey legal landscape because we live here. We understand that a fresh start isn’t just a legal term. It is a life-changing event for our clients. We take immediate action to ease the burden on your shoulders so you can sleep through the night again.
Whether you are in West Berlin, Mt. Holly, Vineland, or Freehold, we are right around the corner. We offer a free consultation because we believe you should know your options without having to worry about how you will pay for the advice.
Why Wait? The Best Time to Act is Now
The “Roadmap to Saving Your Home” is only effective if you start driving. The longer you wait, the fewer exits we have available to us. If you wait until the day of the Sheriff’s Sale, we have to move at lightning speed. If you call us when you receive that first Notice of Intent, we have the luxury of time to build the perfect strategy.
Let this be the year you stop living in fear of the mailbox. Let this be the year you take back control of your finances and your home. We have helped thousands of people in New Jersey find their way through the foreclosure maze, and we are ready to do the same for you.
Contact Brenner, Spiller & Archer Today for a Consultation About Your Case
If you are overwhelmed with debt, facing a foreclosure notice, or dealing with a scheduled Sheriff’s Sale, do not go through it alone. Our experienced bankruptcy and foreclosure defense attorneys are here to provide the friendly, caring, and affordable legal service you deserve.
With offices conveniently located in West Berlin and Freehold, we know the local courts and we know how to protect your rights throughout Central and South Jersey.
Contact our South Jersey lawyers today to schedule a free initial consultation. Call our firm directly at 856-329-8033 or fill out our online contact form to discuss your situation with an attorney now.
Disclaimer: The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.