My home is scheduled for sheriff sale in 3 days and I have used up all my allowed adjournments. Can you still help me?
Under New Jersey law, if you file a chapter 13 bankruptcy Petition before the sheriff sale takes place, you have options to still save your home. However, if you file after the sheriff sale, you have a sixty day redemption period, but the odds of saving your home decrease dramatically since getting a bank to refinance after a sheriff sale occurred is extremely challenging.
Mr. Taieb has helped numerous people who have this dilemma over the last 34 years.
The first and best option to save your home is to cure the arrearages over the next 3-5 years depending on your income. Thus, instead of taking a loan, the chapter 13 creates a plan whereby you would resume your mortgage payments and then pay a bankruptcy trustee to catch up on the mortgage arrears. After you meet your obligations under the plan, you receive a discharge in bankruptcy.
If you cannot afford a mortgage arrearage cure, you always have the option to propose a plan seeking a loan modification. However, there is never any guarantee that you will obtain a loan modification.
If you are fortunate and obtain a loan modification, the mortgage arrears go into the back of the mortgage. However, if you are turned down for a loan modification, then you are forced to do an arrearage cure as your plan or surrender your home. If you do nothing, your bankruptcy case will be dismissed and the mortgage company will be able to resume foreclosure.
Two other options would be to propose a sale of your home in chapter 13 or you can file a chapter 7 if you qualify, where you could eventually lose your home but you would walk away and get a fresh start. However, if you are discharged in chapter 7 before the sheriff sale occurs, you always have an option of doing a chapter 13 immediately after the chapter 7 discharge to again try to save your home.
If you have any questions concerning this matter or any other matter contact TAIEBLAW at 856-235-4994 or visit our website at TAIEBLAW.COM, and schedule a FREE initial consultation.
Steven N. Taieb, Esq. has been a South Jersey Bankruptcy Attorney for over 34 years and is board certified in consumer bankruptcy law by The American Board of Certification which is accredited by The American Bar Association.