How to Answer a Foreclosure Notice in New Jersey

If you are behind on mortgage payments and foreclosure proceedings have started, you may be at risk of losing your house surprisingly fast.  How you respond and what you do next is vital.

Before answering the notice, talk to a lawyer.  There may be mistakes or problems with the notice that you can challenge, but more importantly, you might have options to help you before you even respond to their notice.  What you do next could be the difference between keeping your house and not.

For help, call Young, Marr, Mallis & Associates for a free case review with our NJ mortgage foreclosure defense lawyers at (609) 755-3115.

Call a Foreclosure Defense Lawyer Before Responding

When you initially get a Notice of Intent to Foreclose (NOI), this tells you that the lender is ready to act against you.  It has a limited time for you to reply before they actually file for foreclosure against you.  That quick time limit might make you want to reply and get things over with, but always call a lawyer first.

Having an attorney on your side from the beginning can help set you up for challenges and actions that might take some time to put into motion.  If you wait until after your reply, it can be harder to change course.

The Process of Replying to Foreclosure Notices

There are actually two different notices you will receive, each of which requires some kind of response or action on your part:

Notice of Intent to Foreclose

Once you are behind on your mortgage payments, usually by 3 months, the lender will send you an NOI.  This notifies you that they are going to foreclose if things don’t turn around.

This notice has to include the reasons they want to foreclose, how much you need to pay to get back on track, some information about your current equity in the property, and your options and resources available.

Response

At this stage, your main options are to…

• Let them move forward
• Pay off the debt
• Come up with a payment plan to get you back on track
• Request mediation
• File for bankruptcy, which might pause foreclosures
• And more.

Talk to a lawyer about your options.  If paying a bit extra to get back on track is an option, you may be able to work things out with the mortgage company and avoid foreclosure.

You only get 30 days to act before the lender moves on to filing official proceedings.

Foreclosure Complaint

When a complaint is filed with the Office of Foreclosure, the foreclosure process has officially started.  At this point, you are the actual defendant in court proceedings and should have a lawyer.

You can, again, allow the foreclosure to go through, but your better option is to contest the foreclosure if there are problems with the process or if the lender made mistakes in administering your mortgage.

You may also be able to file for bankruptcy, pausing any collection and foreclosure efforts.

Answer

Your legal filing in response is called an answer.  In this document, your NJ mortgage foreclosure defense lawyer will explain any legal arguments against the foreclosure, such as discrimination, improper notice, or mistakes in identifying the proper borrower.

You get 35 days to file an answer, so do not delay in calling a lawyer.

What Do I Say to the Mortgage Lender?

Do not talk to your mortgage lender on your own if they have started the foreclosure process against you.  Always consult with a lawyer about your options first before trying to handle any of these legal processes.

If you are going to handle things on your own, do not make any promises you cannot follow through on, or else you might lose out on later opportunities to correct or cure your back payments if the mortgage company stops trusting you.

Can I Stop Foreclosure?

If you are able to make up the back payments, payment plans are often accepted.  It is typically harder and more expensive for mortgage companies to go through foreclosure than it is to simply give you a couple of extra months to catch up.

In any case, mortgage companies are not afraid to go through with foreclosure when they need to, so you should have a lawyer on your side.

FAQs on Responding to Mortgage Foreclosure

What is the Foreclosure Process?

After you have received a Notice of Intent to Foreclose, you need to respond and make new arrangements, or else face a formal Foreclosure Complaint.  From there, you get time to give an answer, and the case can proceed to hearings and decisions.

There are many options you have in the middle to negotiate, file counterclaims, and seek help from an attorney.

Can I Stop Foreclosure?

If you respond quickly and have a plan in place, foreclosures can often be stopped after a NOI is sent.  If you are unable to financially handle ongoing payments, bankruptcy might also help protect you or delay foreclosures.

Sometimes there is no way to stop the process, but you still have rights that need to be protected, and we may be able to force the mortgage company to follow every step of the process while you work up the financial power to get your mortgage back on track.

Do I Need a Lawyer?

You may be thinking that a lawyer is too expensive if you are in financial trouble and can’t afford your mortgage.  However, foreclosure defense is incredibly important, and getting a lawyer can mean the difference between the mortgage company taking your house and a well-negotiated plan that lets you keep your home moving forward.

How Long Do I Have to Answer a Foreclosure Notice?

After a Notice of Intent to Foreclose is filed, the lender needs to wait 30 days for your response before they can file the Foreclosure Complaint.  You have 35 days to provide an answer to a Foreclosure Complaint.

What Are My Options in Foreclosure?

Foreclosure cases often have a lot of options, and what is best for your case will depend on your situation.  You can let them foreclosure or pay off the debt, but options somewhere in between – such as a renegotiated payment plan – are often the best option.

Can Bankruptcy Stop Foreclosure?

Filing for bankruptcy gives you an automatic stay, which can halt collection attempts against you.  This can typically halt foreclosure in its tracks and give you breathing room on your debt.

However, bankruptcy is not appropriate for everyone.  If you are just behind because of temporary issues and will be able to recover, you may be best setting up a payment plan or renegotiating the terms of your mortgage with the help of a lawyer.

Call Our NJ Mortgage Foreclosure Defense Lawyers Today

For a free case review, call our Trenton, NJ mortgage foreclosure defense lawyers at Young, Marr, Mallis & Associates at (609) 755-3115.