In New Jersey, when a lender decides to foreclose on a home, it often ends in a sheriff’s sale. However, homeowners have avenues to try to prevent the sale and save their home. Here, we outline the steps and strategies available to postpone a sheriff sale in New Jersey.
How to Postpone a Sheriff Sale in NJ?
Just because your home is scheduled for a Sheriff’s Sale doesn’t mean you are out of options.
By law, you have a right to two adjournments of the sale, and each should be 28 days. After that, if your lender won’t agree to stay the sale, you need to file a Motion to Stay Sheriff Sale with the court.
What is a New Jersey Motion to Stay Sheriff Sale?
A New Jersey Motion to Stay Sheriff Sale is a written request to the Court in your County to ask a Judge to temporarily halt Sheriff Sale. Generally, these motions are filed on an emergent basis on or near the day of the sale. However, if you know in advance that you need to ask for a stay of the Sheriff’s Sale, you can file the motion weeks in advance.
Here is a quick rundown of the NJ Sheriff Sale process to give you an idea of when you would file this document:
- Once your mortgage lender (Bank of America, Wells Fargo, etc.) has obtained a final judgment in the foreclosure, they can schedule a Sheriff Sale.
- The Sheriff of the county where the property is located must publish notice of the sale for four (4) consecutive weeks in a local newspaper and post notice on the property.
- Homeowners have the right to two (2) adjournments of the Sheriff Sale. Each adjournment is for up to 30 days.
- Once both adjournments have been used, a homeowner can still attempt to stop the sale by filing a Motion to Stay Sheriff Sale with the judge.
Here is a link to the NJ Court’s form for a motion to Stay the Sheriff Sale (If you want to discuss being represented by an attorney in Court, please feel free to contact our office):
How Does A Sheriff’s Sale Work in NJ?
It is important to grasp the process thoroughly. In New Jersey, a sheriff’s sale is a public auction where foreclosed properties are sold. Once your lender notifies you of the sale date, you have a limited timeframe to take action to postpone the sale. Understanding the Sheriff Sale timeline and your rights can help prepare you for this challenging time.
Under What Circumstances Can I Stay a Sheriff Sale?
While homeowners have a right to two adjournments without specific reasons, a stay of a sheriff sale is typically granted under particular circumstances:
- Undergoing a loan modification review.
- Actively selling the property.
- The lender has violated foreclosure procedures or borrower rights, such as:
- Dual tracking during a loan modification application review.
- Ignoring or rejecting your loan modification.
- Failing to reply to your loan modification application within 30 days.
- Declining your mortgage payment or reinstatement.
- Incorrectly declaring a default or threatening foreclosure when payments are current.
Legal Assistance
Securing legal assistance can be a crucial step in postponing a sheriff’s sale. An experienced attorney can guide you on the best course of action, helping you to:
- Identify Errors: Your attorney can help pinpoint procedural errors in the foreclosure process that can be grounds for postponement.
- Negotiate With the Lender: Skilled negotiation with the lender can sometimes lead to an agreement that postpones the sheriff’s sale.
- File a Motion with the Court: An experienced attorney can represent you in Court to show the reasons the sheriff sale should be postponed.
Applying for a Loan Modification
A loan modification is a potential pathway to stopping a sheriff’s sale temporarily and permanently.
Filing for Bankruptcy
You may have the right to file for Bankruptcy, as provided by federal law. In most circumstances, upon the filing of a Bankruptcy Petition, you will be entitled to the “Automatic Stay” which is an automatic injunction that halts the Sheriff Sale and other actions by creditors. In order to fully understand your options concerning Bankruptcy, you should seek a consultation with an experienced bankruptcy attorney to determine whether it is an option for you, and what you need to do to be prepared to stop a Sheriff Sale. (The Law Office of Ira J. Metrick, Esq. DOES NOT HANDLE BANKRUPTCY)
Once the Sale is Stayed, What Should I Do?
It is important to note that a stay of sheriff sale is only a temporary solution, and you will still need to find a permanent way to stop the foreclosure and stay in your home.
At the law office of Ira J. Metrick, we can help you stop a sale and defend the foreclosure. We can also conduct a thorough analysis of your eligibility for a loan modification.