My Home is Scheduled for a NJ Sheriff Sale, But I Have Equity. What Should I Do?
If you have positive equity in your home that is scheduled for a sheriff sale, don’t let the sale go through before you’ve had the chance to sell it. In many cases, a judge will stay the sheriff sale and give you the chance to sell it if you have equity. Contact the Law Office of Ira J. Metrick today to discuss your situation and review your options.
Many people think that they can’t sell the house if it is in foreclosure or scheduled for Sheriff Sale, but that is not true. Until foreclosure is complete, your home is still yours to do with as you want. This means that even if your home is scheduled for a sheriff sale, you can still make every attempt to save it, or even sell it. If you have equity, you have the right to sell the property to avoid the Sheriff sale and avoid losing your equity.
If your home is scheduled for a sheriff sale and you have home equity, contact The Law Office of Ira J. Metrick to discuss your options. In Some Situations, We Will Go To Court to Stop the Sheriff Sale to Allow the Property to Be Sold, For No Upfront Fee.
Do I Have Home Equity?
Home equity is the difference between what you owe for mortgages, liens and judgments, and what someone is willing to pay for the property. You can add up the amounts you owe for any mortgages, liens and judgments, and if you can sell the property for more than the total, you have some equity.
Equity in your home is still yours during foreclosure. The more equity you have in your home, the more you stand to gain by selling it as opposed to letting it be sold to the highest bidder by your lender at a sheriff sale. After the sale, you would only be entitled to any “Surplus Funds” which is the balance after the mortgage and liens are paid.
At The Law Office of Ira J. Metrick, we help homeowners facing foreclosure, including those scheduled for a sheriff sale, determine their options for stopping the NJ foreclosure process and staying in their homes. There are several methods to stop or delay a sheriff sale, including:
- Submitting a complete loan modification application
- Adjourning the sale
- Staying the sale
- Filing for bankruptcy
However, if you do not want to stay in your home, there are other options available to you. In many cases, if you have equity in your home, the judge will stay the sale to give you the opportunity to sell your home.
Selling Your Home During Foreclosure in New Jersey
The New Jersey Fair Foreclosure Act (N.J.S.A. 2A:50-53 et seq.,) provides that NJ homeowners should have every chance to keep the equity in their homes. You have equity if you can sell the home for more than you owe to the lender and any judgment creditors and lienholders. Any equity that you have in your home is still yours during foreclosure. If you can sell your home for more than you owe, you have the right to file a motion with the Court and in many instances, a New Jersey Judge will stay the sheriff sale and give you the chance to sell it and keep your equity.
Up until the home is sold at auction, even after your lender has obtained a final judgment of foreclosure, you still have the option to stop the foreclosure by selling your home and using the money you make from the sale to pay back your lender for everything you owe on the mortgage plus fees.
If you do decide to go this route, it is wise to make the decision sooner rather than later in order to give you the most time to find a buyer for the house.
Can I Still Get a Loan Modification if a Sheriff Sale is Scheduled?
If you do not want to sell your home and would rather try to stay in it and stop the sheriff sale, note that it is still possible to get a loan modification even after a final judgment has been entered.
If a complete loan modification application is received by your lender at least 38 days prior to the Sheriff Sale, and there has not been a prior modification application reviewed by this servicer, they must adjourn the sale and review the application. However, it is recommended to have the complete application submitted at least 45 days before the sale to get the most protections.
At the Law Office of Ira J. Metrick, we can review your eligibility for a loan modification and give you an estimate of what the modification payment terms would be.
Contact The Law Office of Ira J. Metrick Today
If your home is scheduled for a sheriff sale and you have home equity or would like to discuss your options for getting a loan modification, contact The Law Office of Ira J. Metrick today to discuss your options.