How to Stop Foreclosure on an Inherited Home in NJ
If you inherited a home that is at risk for foreclosure or a Sheriff’s Sale, or if you are an heir or an owner of a property that is part of an Estate, you can file a motion with the Court to get time to sell the property to save your equity.
If there is equity, you can contact a realtor to list and sell the property. If you can show a Judge that there is equity and the property will be sold, there is a chance to stop the foreclosure and Sheriff Sale.
Positive Equity Can Delay A Sheriff’s Sale on an Inherited Home
If you have positive equity with the home you have inherited, a judge will often stay the Sheriff’s Sale and give you the chance to sell it.
Many people believe that they can’t sell the house if it is in foreclosure or scheduled for a Sheriff’s Sale, but that is simply not true. If you can sell the house and pay the loan(s) in full, it means you have positive home equity for the inherited property, and you have the right to avoid the Sheriff Sale by selling that property.
What is “Positive Equity?”
Generally speaking, having “positive equity,” means that the house or property in question can be sold for more than what is owed i.e. the difference between what is owed on the mortgage and what the property’s actual value is.
In other words, having positive equity allows you to sell a house or property, and make enough money to pay off any debts that are owed.
Lenders Who Fail to Update Foreclosure Litigation on an Inherited Home May Be Prohibited From Proceeding With Sheriff’s Sale
Additionally, if a homeowner dies, prior to Final Judgment, their mortgage lender is required by law to change the foreclosure litigation in order to include and specify any heirs, executors and administrators who may have inherited the property or have control over it.
Despite the death of the initial borrower, some lenders may attempt to proceed with foreclosure or Sheriff’s Sales without properly notifying, or taking account of, the designated heir, administrator or executor of the estate.
If a lender fails to notify the rightful heir(s) or executor of their intent to proceed with the foreclosure or Sheriff’s Sale prior to Final Judgment, we may be able to file a motion to halt these processes in their tracks.
In Some Situations, We Will Go To Court to Stop the Sheriff Sale to Allow the Property to Be Sold, For No Upfront Fee
If you are an heir or you are inheriting a property that has equity and is in foreclosure, and the property will be sold, we may offer to go to Court and file the Motion to Stay the Sale without being paid until the property is sold. Please feel free to contact us to discuss the specific facts of your case. Contact us today for a free consultation.