Understanding a New Jersey Notice of Intent to Foreclose

New Jersey imposes substantial restrictions upon a mortgage lender before it is able to foreclose upon your home. The lender must follow specific procedures designed to provide ample notice of the intent to foreclose upon your property before any foreclosure sale is permitted. Understanding a New Jersey notice of intent to foreclose is one of the first steps to stopping a foreclosure from occurring.

An experienced foreclosure attorney can help you understand ramifications of the notice and its contents and analyze whether the notice meets all requirements that the lender is legally required to satisfy before continuing with the foreclosure process.

Contents of a Notice of Intent to Foreclose

In New Jersey, a notice of intent to foreclose must contain specific information designed to apprise the homeowner of the mortgage lender’s intent to foreclose and steps that the borrower can take to prevent the foreclosure. A foreclosure attorney can help the borrower in understanding a New Jersey notice of intent to foreclose, which must contain the following information:

  • The lender’s identity, contact information, and the nature of the lender’s interest in the property
  • The reason for foreclosure
  • Steps the borrower can take to cure the default, including payment of any missed payments, plus fees and expenses actually incurred by the lender
  • The amount that must be paid in order to bring the mortgage current, and a notice that the borrower has 30 days to do so
  • Information as to what will happen if the borrower fails to cure
  • Information regarding the borrower’s right to sell the property even while foreclosure proceedings are ongoing
  • An explanation of the importance of gaining the advice of a foreclosure attorney
  • A list of resources that the borrower can consult to help cure the default, including contact information of the New Jersey Department of Banking and Insurance

The mortgage lender must provide the notice of intent to foreclose at least 30 days before filing a formal foreclosure complaint with the courts.

Actions Steps After Receiving a Notice of Intent to Foreclose in New Jersey

Understanding a New Jersey notice of intent to foreclose is the first step in the process, but it is equally important that a borrower understand the actions steps that are necessary after receiving this notice. After the borrower receives a notice of intent to foreclose, he or she should contact a foreclosure attorney as soon as possible to preserve as many options for stopping the foreclosure as possible.

If the borrower is unable to cure the default, the mortgage lender will file a foreclosure complaint, which will also be served upon the borrower. It is possible that the borrower can then request to participate in New Jersey’s foreclosure mediation program, which will not stop the foreclosure proceedings but can provide additional options to the borrower.

For borrowers with adequate income who have only experienced temporary financial difficulties, a mortgage modification may be an option. This can allow the borrower to negotiate with the mortgage lender in order to bring the mortgage current in a way that the borrower may be able to afford.

How a New Jersey Foreclosure Attorney Could Help

A foreclosure attorney can help determine whether the borrower should file an answer to the complaint that will contest the mortgage lender’s right to foreclose entirely, or whether a mortgage modification may be a viable solution for the borrower.

If you wish to stay in your home, it is highly advisable that you contact a foreclosure attorney for help in understanding a New Jersey notice of intent to foreclose, and the options that you may have after receiving this notice.