By Fredrick P. Niemann, Esq., a NJ Foreclosure Attorney
With the harsh economic times have come more and more foreclosures, as real estate values have declined and individuals have unfortunately fallen behind on their mortgage payments. The NJ Courts and some lenders have been understanding of this situation, with lenders often being open to mediation and renegotiation of mortgage agreements and the NJ Courts often encouraging settlement between mortgagors and mortgagees as opposed to foreclosure. New Jersey law offers what is known as a “redemption period”, a 90-day window in which the property owner is allowed to live on the property and attempt to negotiate some sort of settlement with the lender before the lender is allowed to foreclose on the property. NJ Courts may sometimes allow for an extension of this redemption period, but not in all cases.
A recently resolved NJ Court case involved a borrower requesting an additional extension of the redemption period from the Courts, after the period had already been extended once. While the NJ Courts had been open to extending the period the first time, they denied her subsequent request. The NJ Courts noted that the actions of the borrower were not indicative of someone that deserved the second extension. The defendant didn’t give the lender the required financial documents for mediation until a week prior to the end of the first extension, leaving insufficient time for mediation to be completed. There was no indication that the lender acted in bad faith in attempting to hinder the defendant’s right to mediation. The borrower was not entitled to dictate the time frame of the mediation on their own time schedule, the court said. The plaintiff/lender was therefore entitled to proceed with the foreclosure.
Having a knowledgeable NJ Real Estate Attorney can make all the difference in foreclosure proceedings. Real Estate Attorneys can help you in the negotiation and mediation process to help ensure you fully comply with document submission other responsibilities. They can also protect you from lenders seeking to take advantage of you based on your financial situation.
Contact me personally to discuss your NJ Real Estate matter. I am easy to talk to, very approachable and can offer you practical, legal ways to handle your concerns. You can reach me toll free at (855) 376-5291 or email me at fniemann@hnlawfirm.com/.