Early on in the COVID-19 pandemic the New Jersey courts placed a hold on the entry of final judgments of foreclosure. That meant that although foreclosures were allowed to be filed, the cases could proceed only up to the filing of a motion for a final foreclosure judgment. Those motions however were not being heard and the judgments were not being entered. Effective June 25, 2020, the hold on the entry of foreclosure judgments has been lifted.
While this is not good news for homeowners who are facing foreclosure, many of the loans that might otherwise be subject to entry of final judgment are backed by the government. FHA, Fannie Mae and Freddie Mac are currently not moving forward with foreclosures on their loans. Other lenders that have entered into forbearance agreements with borrowers that were already in foreclosure may also be precluded under those agreements from requesting final foreclosure judgments.
Even though foreclosure judgments may be entered against some homeowners, there remains in effect a pause on Sheriff sales. While sale dates may be scheduled, they may not take place until the governor lifts that pause.
While there is still some protection for homeowners facing foreclosure, this recent lifting of the ban on entry foreclosure judgments is the first step toward what will eventually be the resumption of foreclosure sales in the State of New Jersey. With many homeowners still suffering from shut downs, this is not good news.
If your mortgage lender is trying to foreclose on your home, contact us immediately. At Levitt & Slafkes, P.C., we have over 30 years of valuable experience in helping clients keep their homes. You have options and legal rights, and the last thing you want to do is ignore the situation. Let us assist you. Contact our office today at (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.