The following article was written by Theodore Sliwinski, Esq. and can be found on New-Jersey-Lawyers.com
BASIC FORECLOSURE FAQ’S
1. What is a foreclosure case?
Foreclosure is the legal process where a court orders the sale of a home when the homeowner doesn’t pay the mortgage. Right now thousands of New Jersey homeowners are having tremendous difficulty making their mortgage payments. It is important for you to know that the lender can’t take your house automatically if you have missed mortgage payments. The lender must take you to court where you have several options to try to save your home. It is important for you to be aware that in many cases a mortgage foreclosure can be prevented. Don’t give up hope if the bank has filed for foreclosure. You can file for bankruptcy, pursue a loan modification, or participate in the foreclosure mediation program.
2. How are mortgage liens treated in New Jersey?
A mortgage is simply an agreement wherein a lender uses a house as collateral for a debt. If a homeowner does not pay his mortgage, then a lender can try to force the sale of the home so that it can be sold to satisfy the debt. After a homeowner signs a mortgage, the original mortgage is then recorded with the County Clerk in the county wherein the house is located.
3. What is a note?
When you sign your mortgage, you also sign a document called a note. The mortgage note is just like an IOU. The note spells out the amount of money you have borrowed and the terms for repayment, such as the interest rate and length of the loan. A loan default occurs when a borrower fails to do what the mortgage note requires. For example, a homeowner who misses a mortgage payment is in default. It is important to identify and understand the terms of your mortgage note. The principal is the total loan amount borrowed and it is the face value of the note. The interest rate is the amount that a borrower pays the lender for the use of the money, expressed as a percentage.
4. How are mortgages foreclosed upon in New Jersey?
In New Jersey the bank must file a foreclosure case with the court. Once the bank obtains a foreclosure judgment then the property will eventually be sold at a public sheriff sale. The court that has jurisdiction over a foreclosure is the Superior Court of New Jersey, Civil Division, General Equity. During the foreclosure process the bank must also file a legal form called a lis pendens. A lis pendens is a recorded document that provides to the public notice that the property is being foreclosed upon. Therefore, the homeowner can’t sell the home to avoid the foreclosure if a lis pendens if filed. The foreclosure unit of the Superior Court handles all foreclosures.
5. What are the legal documents used to effectuate a New Jersey mortgage? …..click here to finish this article
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