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CalAttorney2
CalAttorney2, Attorney
Category: Landlord-Tenant
Satisfied Customers: 10244
Experience:  I am a civil litigation attorney with experience representing both landlords and tenants in residential and commercial property disputes.
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Need assistance with a foreclosure question in state of New

Customer Question

Need assistance with a foreclosure question in state of New Jersey
Submitted: 1 year ago.
Category: Landlord-Tenant
Expert:  CalAttorney2 replied 1 year ago.

Dear Customer,

My name is ***** ***** you for using our forum. How can I assist you tonight.

Customer: replied 1 year ago.
Are you familiar with New Jersey law and foreclosure process?
Expert:  CalAttorney2 replied 1 year ago.

I am. If you post your question I can better assist you. If I cannot assist you, I will opt out and allow another expert to review it, but without knowing what your question is it makes it hard to make that determination.

Customer: replied 1 year ago.
This is my question. I am behind on my mortgage. I received a letter of intent to foreclose November 1. My past due balance to bring current was 2853. I have paid 2484 of that and I'm short a little less than 400. My question is this what do I do? If I don't pay the full 2853 will they really begin foreclosure process? Im stressing because I really can't come up with any more money until 12/15 and 12/15 and my date to cure the default is 12/2.
Customer: replied 1 year ago.
I meant to say 12/15 and 12/25
Expert:  CalAttorney2 replied 1 year ago.

Yes, the bank/lender can still initiate the foreclosure process if you do not pay 100% of the deficiency.

You can still redeem the property if you can bring the money together shortly after this time period, however it gets more expensive as you are now going to be liable for any legal expenses that the lender has incurred in initiating the foreclosure itself. (This is the "redemption period").

If you are this close, you may want to speak with friends/family/other banks, credit unions regarding a small loan to help you make up this deficiency in the short term. A small amount of interest will generally be less expensive than the legal costs associated with the redemption.

Here is a good overview of NJ Foreclosure law for your reference, it is published by the NJ Courts: http://www.judiciary.state.nj.us/notices/reports/foreclosure.pdf

Customer: replied 1 year ago.
they would start a foreclosure process on $400? Mortgage companies will not work with a consumer over such a small amount after I've paid so much of past due amount?
Expert:  CalAttorney2 replied 1 year ago.

Your question was "Can they" - the answer is "yes they can"

If you can get the bank to work with you (extend you a short extension), make sure to get it in writing, because if you do not, they can initiate the foreclosure over $400.00. The lender doesn't have an obligation to extend this to you, but most will try to work with a reasonable offer from a borrower.

You do not want to be stuck with a foreclosure suit over this small deficiency, so the two options are either to scratch together the money from somewhere, or work out something with your lender in writing!

Customer: replied 1 year ago.
When I call the lender what do I say and what department would I talk to? Loss mitigation department?
Expert:  CalAttorney2 replied 1 year ago.

You should have a contact number listed with your LOI (Letter of Intent).

If you do not, you can contact the loan servicing department and start there. Unfortunately each bank has their own policy on where they send loans that are in foreclosure or pre-foreclosure, but loss mitigation may not have your loan yet - so I would start with loan servicing.

As far as negotiating with them, identify the shortfall and provide them with an offer to make it up. See if they can agree to it, if they do, make sure to get it in writing and send them a "confirmation letter" summarizing your agreement and the terms (include the loan number, address, and any other information you include on your loan correspondence - and send it to both the return address for the LOI and your regular loan servicing address).

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