We are often asked what can be done to stop a Sheriff Sale once it has been scheduled. In New Jersey, the best chance you have of staying in your home is with a loan modification, which allows you to start making payments again and avoid foreclosure.
Will a Loan Modification Application Stop the Sheriff Sale?
If you have not been reviewed by your current lender since January 2014, and you submit a complete loan modification application at least 38 days before the Sheriff Sale, your lender is legally required to halt the sale and review it. If your lender is reviewing your loan modification application, or is supposed to be reviewing it, they are not permitted to:
- File a foreclosure complaint.
- Apply for a final judgement of foreclosure.
- Schedule or conduct a Sheriff Sale.
Why Can’t My Lender Proceed with a Sheriff Sale While My Loan Modification Application is Being Reviewed?
There are federal laws in place that prevent your lender from selling your home in a sheriff sale while you are being reviewed for a loan modification. This is known as Dual Tracking, and can also be a violation of the Fair Debt Collection Practices Act.
The Dual Tracking statute (12 C.F.R. §1024.41(c)) states that:
- A lender is not permitted to pursue any foreclosure or sheriff sale related action until they have reviewed your modification application, and allowed you to appeal any denial.
- Your lender must review and respond to your complete application within 30 days. If they take longer than that, they are in violation of federal law.
If your lender is in violation of either of these rules, contact us today. We can help you determine if your lender has broken any federal regulations, and whether you can stop the sale.
We Can Help You With Your Loan Modification Application
If you have any questions about your options for getting a loan modification, contact Ira J. Metrick today. We can conduct a thorough analysis of your eligibility for a loan modification. Based upon information about your loan and you, we can determine if you are eligible for a loan modification, and we can give you an estimate of the modification payment terms. We also offer aggressive representation to pursue the modification. We use the new federal guidelines to force the lender to acknowledge receipt of our submissions and review the application in a timely fashion. If the lender fails to meet their obligations, we can file federal complaints to obtain a modification, plus attorney fees and damages.