The Right To Cure Default Pursuant To Section 6 Of The New Jersey Fair Foreclosure Act
The New Jersey Fair Foreclosure Act (FFA), N.J.S.A. 2A:50-56, requires lenders to follow certain specific procedures during the foreclosure process to inform homeowners of their rights. One of these procedures is the right to “cure default” or “reinstate” the loan, before the lender can see Final Judgment and a Sheriff Sale.
If you have been served with a Foreclosure Complaint from your lender, you may have filed an Answer and tried to fight with the bank, or you may not have understood what you were supposed to do. In either instance, before the lender can apply for a Final Judgment and seek a Sheriff Sale, your lender is required by law to send you a Fair Foreclosure Act Notice at least 14 days prior to requesting the Final Judgment.
Here is an example of what a Fair Foreclosure Act Notice will look like:
This notice offers you a final chance to cure the default, or reinstate. If you follow the instructions in the notice and advise the lender that there is a reasonable likelihood that you will be able to make the payment, the lender will put the foreclosure on hold. If you say that you have a reasonable likelihood that you can “cure” the default, the lender must wait 45 days to see if you make the payment, and they cannot pursue the Final Judgment of Foreclosure during this 45 day window.
View our New Jersey Foreclosure Timeline for more information about this process.
What Should I Do if I Receive a Fair Foreclosure Act Notice?
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. Contact the law firm of Ira J. Metrick today to discuss your options for preventing the foreclosure.
- We can assist in applying for a 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 you 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.