Should You File Bankruptcy Before a Sheriff Sale?
The state of New Jersey gives homeowners 10 days to save their home. If they don’t file bankruptcy, they can still keep their home after the sale. To do so, they must pay off the entire mortgage debt plus certain costs. However, this is a long shot for many people. Bankruptcy can help stop a sheriff’s sale and save your home. If you don’t have enough money to pay off your mortgage, you should consider filing for bankruptcy before the sale.
Foreclosures take long. The New Jersey court system requires that lenders give their defaulting borrowers at least 10 days notice of foreclosure. During this time, the lender must provide a written notice to the defaulting borrower and pay a court filing fee. The sheriff can delay the sale if the lender agrees to grant you a delay. The process can be stressful and time-consuming.
If you are not sure of the sheriff’s sale date and time, it’s a good idea to call the sheriff’s office and ask. They will have more up-to-date information than other resources. Many counties in New Jersey list upcoming sales on their county website. However, this information is sometimes delayed and may not be accurate. It’s also best to contact an attorney before the sale to determine the best course of action.
You may be able to save your home through Chapter 7 Bankruptcy. This can delay the sheriff sale and wipe out your unsecured debt, which can be an option for saving your home. This option, however, will not save your home permanently. Instead, you might qualify for a loan modification. During this time, lenders must adjourn the Sheriff sale and review the loan application. The majority of lenders will accept loan modification applications 37 days before the sheriff sale.