Table of contents:
Introduction
Foreclosure is the legal process where a court orders the sale of a home when the homeowner doesn’t pay the mortgage. Right now, many homeowners are having trouble making their mortgage payments. You need to know that the lender cannot take your house automatically, even if you have missed mortgage payments. The lender must take you to court, where you can defend yourself against foreclosure. You also need to know that, in certain circumstances, mortgage foreclosure can be prevented. The information in this manual is designed to help you understand the court process for foreclosure and the defenses you might have that may help you prevent foreclosure.
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A. How to Use This Manual
This manual is designed to help you learn more about the process of foreclosure and what you need to do to avoid foreclosure. It is best to read the entire manual first and then go back to the section that is most helpful to you. From time to time, you will see references to laws and cases. These references are called legal citations or cites. They are meant help to explain foreclosure law and procedures. Take notes and write down any questions that you may have. This manual contains a glossary of legal terms, a chart, and a several letters and forms for you to use if you decide to represent yourself in a foreclosure action. It is also a good idea to get a calendar to keep track of deadlines. Missing deadlines can cause you additional legal problems.
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B. Ways to Avoid Foreclosure
1. Defend yourself in court
This manual focuses on the foreclosure process and the steps that you can take in court to prevent foreclosure.
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2. Mediation
The State of New Jersey recently announced a court-run foreclosure mediation program. Mediation is an opportunity to try to negotiate a payment plan with the lender, with the assistance of a person appointed by the court. Under the state’s mediation program, mediation does not stop the foreclosure process from continuing. If the mediation is successful, and the parties come to an agreement, they may agree to stop the foreclosure. Remember: Unless there is a court order or a written agreement to stop the foreclosure, the foreclosure process will continue while the mediation is going on.
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3. Bankruptcy
Sometimes, a bankruptcy can help you save your home, whether or not you have claims and defenses against the mortgage company. For more information about bankruptcy see Chapter 4, Other Ways to Protect Your Home From Foreclosure.
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