MYERS & PICO, P.C. represents both lenders and borrowers with regard to foreclosures. We also represent prospective purchasers of properties in foreclosure.
For Lenders and Borrowers of properties who want to foreclose, or who are being foreclosed upon, the NEW JERSEY FAIR FORECLOSURE ACT governs the rights and remedies of the parties in a foreclosure action. The Act became effective as to foreclosures commenced after December 4, 1995, and it primarily focuses on the residential mortgage foreclosure process (one to four family dwelling occupied by the borrower or a member of the borrowers immediate family), but contains provisions of general application to all foreclosures.

Navigating the New Jersey Fair Foreclosure Act is not a simple matter. There are Notice Requirements which need to be sent before a foreclosure complaint can be filed in Court. In order for a foreclosure action to commence, the lender must give at least 30 days prior written notice of intention to foreclose. The notice of intention to foreclose must include, among other things, a description of the debt; the nature of the default; the amount necessary to cure the default; the date before which default must be cured (which must not be less than 30 days of the notice); and that if default is not cured, the lender may exercise remedies permitted by the Act.

In addition to the pre acceleration notice, the Act permits reinstatement of any residential mortgage loan by payment of the amount which would have been due in the absence of the default together with court costs and attorneys’ fees in an amount not to exceed those permitted by the New Jersey Court Rules. Although a residential mortgage loan may have been accelerated, the borrower may reinstate or “cure” the loan by paying only the past due periodic payments, court costs and permitted counsel fees. If this reinstatement right is exercised, the default is voided as of the date of the payments and fees due, and any acceleration of the mortgage is stopped. You only have the right to cure once every 18 months as to any particular mortgage. The right to cure by payment exists at any time up to the entry of final judgment or the entry by the Office of Foreclosure of an order of redemption, and not thereafter; so that once the final judgment has been entered, you cannot reinstate your mortgage.

The Act requires the sheriff to conduct a foreclosure sale within 120 days of receipt of the writ of execution and, if unable to do so, permits the Office of Foreclosure to appoint a special master to conduct the sale. In connection with sales, sheriffs will now be permitted to allow only two 14 day adjournments, rather than two 30 day adjournments as is current practice. The act also contains a standard form of sheriff’s deed for all foreclosures and requires the sheriff’s deed to issue within two weeks of the sale provided the purchase price is timely paid.

For Investors or Buyers of property at a foreclosure sale, you must comply with the requirements set forth by the Sheriff at the foreclosure sale, and you must be prepared by obtaining a title search on the property you intend to purchase at the sale. Ascertaining which judgments, municipal liens and mortgages will remain against the property being sold and which ones will be extinguished requires an experienced title officer and attorney, to insure that you can obtain title insurance on the property you purchase at the sale. The last thing you want as a purchaser of a foreclosed property is to own property that has more liens or mortgages on it than what you expected.

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