Seymour's Blog

"Chapter 13 Stops a Sheriff's Sale on Your Home"

Foreclosures are occurring in record numbers. Millions of people are confronted with the prospect of losing their homes. President Obama and the current administration have been creating various alternatives such as mortgage loan modification, mortgage meditation, and other options to avoid foreclosure.

Nevertheless, many millions of people still cannot qualify for these new programs, and they eventually face the day of reckoning. Their house is listed for a sheriff’s sale and they apparently have run out of options to stop the sheriff’s sale.

If you live in New Jersey, there are certain things you should know about a sheriff’s sale. You, as a homeowner, are entitled to receive two postponements of your scheduled sheriffs sale. The sheriff’s office will normally permit two postponements of two weeks each at your request. Some county sheriffs charge a fee and some do it for free

New Jersey also provides a procedure for mortgage mediation. If you are facing a sheriff ‘s sale on your home and you have not yet requested mediation, you can file papers requesting mediation before a sheriff’s sale, and in most circumstances sheriff’s sales can be postponed while you are waiting for your mediation hearing. This is a relatively new law that was started around 2008.

If all other options have failed, a Chapter 13 would normally automatically stop a sheriff’s sale.

I literally had clients come to me one morning when their sheriff’s sale was scheduled for 1 pm., we filed a bankruptcy for a gentleman about 5 minutes before the scheduled sheriff’s sale. The sale was stopped, and my client has been able to work out a deal and keep his property.

Filing a Chapter 7 would also normally stop a sheriff’s sale. Check with an attorney to determine what the best solution is for you.

The main point here is that even if you are down to the wire and the sheriff’s sale is blooming in the future, you still have rights and options available to you.

Feel free to call me at 856-696-8300 with any questions you may have. I am always happy to help.