The right of redemption allows you to get back your home after a sheriff sale.
NJ Sheriff’s Sales Have Resumed
NJ Sheriff Sales on residential property were on hold since the beginning of the COVID-19 pandemic. As of September, 2021 Sheriff Sales have resumed in New Jersey. As of the date of this blog, however, they are currently not being held in all counties.
In order to determine if your home has been scheduled for Sheriff Sale or if there has been a sale held on your property, you should contact the Sheriff’s Office of the County in which your property is located.
If your home has been scheduled, but the Sale has not been held, there are still options to save your home. One of the options for stopping the Sheriff Sale is by filing a Chapter 13 Bankruptcy. A Chapter 13 filing puts in place an automatic stay which stops the Sheriff Sale from taking Place.
If your home has recently been sold at a Sheriff Sale in New Jersey you may be wondering if you can still keep your house.
Your last opportunity to save your home is through redemption. Once your property is sold at the Sheriff Sale you have 10 days to redeem the property and take back ownership. To redeem the property you must pay the entire amount of the foreclosure judgment plus any other amounts that you owe.
If you do not redeem the property within 10 days, the proceeds from the sale are paid to the mortgage lender, and any other lienholders, with any excess paid to the homeowner. There is generally no excess to pay to the homeowner. When there is excess the Sheriff deposits the surplus funds with the Court. In order to get this surplus money, the former homeowner, or any party claiming a lien on the property, has to file a motion with the Court requesting that the surplus funds be turned over. The Court decides who gets the surplus funds.
If the house sells for less than the mortgage balance, which is often the case, the lender may have the right to sue the homeowner for the deficiency, although this rarely occurs.
When You Can Redeem Your Home After a New Jersey Foreclosure
Foreclosures in New Jersey are judicial, which means the lender files a lawsuit in court to foreclose your home. To understand the Stages of Foreclosure in New Jersey click here. After the foreclosure sale, the New Jersey Court Rules provide a 10-day period during which the homeowner may file a motion objecting to the sale. After the 10-day period, the court must confirm the sale to finalize it.
The New Jersey Supreme Court has determined that foreclosed homeowners get the right to redeem:
- within the 10-day period after the sale, and
- up until the court issues an order confirming the sale if objections are filed under the rule.
Chapter 13 Bankruptcy Extends the Right of Redemption
A Chapter 13 Bankruptcy filed before the expiration of the 10-day redemption period will extend the right of redemption for an additional 60 days.
Options to Get Your Home Back Before the Sheriff Sale
In New Jersey you may reinstate your mortgage loan by curing the default anytime up until the entry of a final judgment. Your home can also be redeemed before the Sheriff Sale by paying the full amount of the mortgage debt. Other alternatives to stopping foreclosure and getting your back before the Sheriff Sale include Chapter 13 bankruptcy and loan modification.
To learn more about the Sheriff Sale Process in New Jersey click here.
We Can Help You Get Your Home Back After Sheriff Sale
If your home was sold at a New Jersey Sheriff Sale and you are interested in redeeming it either through the 10-day redemption period or by extending that period with a Chapter 13 bankruptcy you must contact an experienced foreclosure defense attorney TODAY! You must take action now because before your chance to redeem your home is gone. Call Levitt & Slafkes 973-323-2953, or contact us online to schedule a free consultation.
We are proudly designated as a debt relief agency by an Act of Congress. We have proudly assisted consumers in filing for Bankruptcy Relief for over 30 years. The information on this website and blogs is for general information purposes only. Nothing should be taken as legal advice for any individual case or situation.