What is a Notice of Intent to Foreclose?
If you fall behind on your mortgage payments, before a foreclosure complaint is filed, you should receive a letter from your mortgage lender, by regular and certified mail, called a Notice of Intent to Foreclose. This notice is required by the New Jersey Fair Foreclosure Act, N.J.S.A. 2A:50-56, and must be sent to a borrower at least 30 days before the lender can file a foreclosure complaint. This notice gives a borrower a final chance to reinstate their mortgage and get back on track with payments before the lender files the foreclosure Complaint.
View our New Jersey Foreclosure Timeline for more information about this process.
What does a Notice of Intent to Foreclose Include?
This notice is legally required to include several important pieces of information, including:
- Identity of the lender, including their name and address, and the name and address of their representative, if any.
- The reason the lender is attempting to foreclose, such as missed mortgage payments.
- Notification of your right to cure the default and reinstate your mortgage by making up all of the missed monthly payments, plus the late fees and expenses actually incurred. (A Lender CANNOT force you to pay and fees or costs that have not actually been incurred by them)
- The amount you owe in order to reinstate the mortgage, and your deadline to do so. Your lender is required to give you at least 30 days.
- An explanation of what will happen if you do not pay the amount, such as a foreclosure complaint and suit to terminate your ownership of the property.
- Notification that you are able to stop the foreclosure process even after the foreclosure complaint is filed.
- Notification that you are legally allowed to sell or transfer title to the property during the foreclosure process.
- A statement that you are advised to seek the help of an attorney, and information about how to do so, including your options if you cannot afford one.
- Information about any available resources to help you cure the default, and contact information for the New Jersey Department of Banking and Insurance.
I Received a Notice of Intent to Foreclose. What Should I Do?
A Notice of Intent to Foreclose is the first step in the foreclosure process. If you receive this notice in the mail, it is important to be proactive and take immediate action to protect your home. The longer you wait, the fewer options you may have of halting the foreclosure. Contact the law firm of Ira J. Metrick today to discuss your options for:
- Filing a Contesting Answer to the foreclosure. We will carefully review your case and identify defenses to the foreclosure that will force your lender to prove that they have the right to foreclose on your home. We may also have the opportunity to file counter-claims against your lender for any violations on their part, including but not limited to:
- Real Estate Settlement Protection Act (RESPA) regulations;
- Truth in Lending Act (TILA) regulations;
- Refusing to honor your loan modification; or
- Refusing to accept your mortgage reinstatement payment.
- Applying for a loan modification. The best long term solution for an issue with your mortgage, is a mortgage loan modification. We can do an analysis to determine if you qualify for a modification and give you an estimate of what the new payment terms would be. If you qualify for a loan modification, you can change your mortgage payment plan and get back on track with your monthly payments. We can also represent you to apply for a modification, by using the new Federal Guidelines to ensure that the lender properly reviews your modification application. If your application is not properly reviewed, it is our goal to be in a position to bring a Federal lawsuit to obtain the modification, reimbursement of the attorney fees, plus damages.
