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Clifton, NJ Mortgage Foreclosure Defense Lawyers

Mortgage foreclosure can be a daunting prospect for homeowners in Clifton. If you believe your home may be foreclosed upon, contact our lawyers immediately.

Before your home can be foreclosed on in Clifton, your bank must send you notice. Then, after 30 days of sending you this notice, the bank can officially initiate foreclosure. Even if your bank has filed a foreclosure petition with the court, that does not mean your home will be lost. There are several defenses our lawyers can use, depending on your case, to undermine a bank’s claim. For example, if your bank acted predatorily when providing your initial loan, its complaint might be thrown out. If a bank’s foreclosure petition was successful, there may still be time to stop foreclosure from taking place. This can be done by filing for bankruptcy in Clifton.

To have the Clifton, NJ mortgage foreclosure defense lawyers of Young, Marr, Mallis & Associates assess your case for free, call us at (609) 755-3115.

Steps Preceding Mortgage Foreclosure in Clifton, NJ

When facing the possibility of mortgage foreclosure in Clifton, homeowners should familiarize themselves with the steps preceding this process so that they know what to expect.

If foreclosure is imminent, you might receive an informal notice from your bank alerting you to your delinquency. This is not required but might be sent out if the bank believes you can cure your mortgage. If your bank does not send an informal notice, it must, at the very least, send you an official notice of intent to foreclosure. Your bank can then file a mortgage foreclosure petition with the court 30 days after sending this letter.

Homeowners do not have to be delinquent for long before a bank can start foreclosure. In New Jersey, homeowners need only be delinquent for 120 days, or about four months. After that point, your bank can initiate mortgage foreclosure proceedings.

After receiving your bank’s notice of foreclose, inform our lawyers. Our mortgage foreclosure defense lawyers can communicate with your lender in the hopes that it will be open to negotiating an agreement that works for all parties and delays foreclosure in Clifton.

Defenses Against Mortgage Foreclosure in Clifton, NJ

If you cannot cure your mortgage before foreclosure proceedings take place in court, our lawyers can form a defense to combat foreclosure. Fortunately for homeowners in Clifton, several viable defenses can be used to halt foreclosure.

Predatory Lending Practices

Banks are prohibited from engaging in predatory lending practices in Clifton. This means that banks cannot abuse their power when giving mortgage loans to prospective homeowners. An example of predatory lending is if a bank gives a person a loan that is well outside their financial ability. When instances like this occur, homeowners are typically unable to meet their monthly mortgage payments from the get-go. Continuously advising you to refinance your mortgage in exchange for high interest rates is another common way banks engage in predatory lending. With proof that there were predatory lending practices at play, homeowners can often successfully defend mortgage foreclosure cases in Clifton. There are many activities that constitute predatory lending. If you believe you have been taken advantage of by your bank, inform our lawyers.

Failure to Follow Foreclosure Procedures

There are specific procedures banks must follow in order to foreclose upon a person’s home. For example, they must send notice of intent to foreclose letters to homeowners, informing them of their delinquency and of the bank’s next steps. Banks must also file the necessary petitions and forms with the court, as all mortgage foreclosures are judicial in Clifton. Failure to follow such procedures can cause a bank’s mortgage foreclosure petition to be thrown out. While a bank can and might refile its case, that might give our attorneys more time to undermine its claim, allowing you to keep your home.

Steps Following Mortgage Foreclosure in Clifton, NJ

Sometimes, homeowners do not take the possibility of foreclosure seriously, and a claim is left uncontested. In such instances, foreclosure will be carried out in Clifton.

If your bank’s foreclosure complaint is uncontested or predatory lending did not occur, giving you a reason to avoid foreclosure, several steps will follow. First, you will be made to vacate your home. Then, a sheriff’s sale of your property will take place. When this happens, your home will be sold at auction. Although homeowners will have the right of redemption following all sheriff’s sales, redeeming their property will be based on their ability to cure all outstanding mortgage payments.

If your house is about to be sold at auction, you can stop that from happening. Bankruptcy allows those at risk of mortgage foreclosure to stop all proceedings. This is done by virtue of the automatic stay that goes into effect when debtors file for bankruptcy in Clifton.

An automatic stay should remain in effect for the entirety of your case. When under bankruptcy, you will be given the opportunity to address your outstanding mortgage debt. This can be done through asset liquidation or a repayment plan, depending on the chapter of bankruptcy you file.

If you have other debt in addition to mortgage debt, you can address those financial burdens during bankruptcy as well. The type of bankruptcy you file will dictate how long the process takes to complete. Chapter of bankruptcy can also determine how long bankruptcy remains on your credit report in Clifton.

While bankruptcy can impact your credit score, it can also prevent your home from being lost because of mortgage foreclosure, ensuring you have a place to live. Furthermore, when you are able to retain your home, you will not have to worry about finding a new mortgage or purchasing a new property.