After The Sherriff Sale NJ
Hi,
my post was deleted due to cap lock on...I didn't realize this was against the rules. My original question was that of the excess money paid after a sherriff sale....the total amount due on the mortgage was 232,000...the house sold at the sale for 340,000...I was tols that the extra money after any fees and/or liens would go to the homeowner...that works out fine. My next question was that now that they have a foreclosure can they get a new mortgage...the original reason for their falling behind is resolved and with the sale they will have a good down payment....if so, does anyone know who I can refer them to for a morgage. Any help is greatly appreciated!!! 
One more question, hope someone can help. Now that their house has sold at the sherriff sale and the redemption period has expired how long will they have before they are evicted? At this point no one has contacted them, they weren't even notified officially of the sale yet. They are in the process of looking for a new house and they have contacted the sherriff department about the money due to them...they don't want to stay forever but they do need some time to get re-established....any advise on this one?
My brother is an underwrtiter for a major
conservative bank and even they, despite
their conservative nature, WILL loan
(b/c loan) to people wiht a foreclosure on their
record. So , if they will, for sure the more liberal
mortgage brokers will. They will have to put
more than the usual 5-10% down (probably will
need 20-30% down) and will, unfortunately, get
socked with a high interest rate, but heh, at least
they'll get a loan.
Per other question.......process works like
this (at least in PA where i'm familiar it
does - NJ probably is similar)...
1) Person buys property at bid, pays 10-20%
deposit
2) Person pays remaining balance within a
certain tme (7-15 days)
3) Court reviews it, public notice is posted
for distribution of funds (who the money
goes to - make sure they get their share)
4) If no one disputes the distribution of
funds, then the buyer gets the deed.
I bought a foreclosed property in PA on Jan 5
(date of auction) and I got the legal title to
it (Sheriff's deed) on Feb 20. - about 6 weeks
after sale.
Your timing may be different in NJ, but I suspect
it is similar +- a week.
If an investor bought it, then they may come
by and offer them a 'cash for keys' deal -
investor gives them $1000-2000 to leave
and they move out in a few weeks.
If a private buyer boguth it for themselves, they
may just go the 'ejectment route'. Throwing
a tenant out is called 'eviction', throwing
an owner out after foreclosure is called
'ejectment' (at least in pa).
Pluses/minuses of each -
To 'evict' a tenant, you can do it at the local
magistrate level - but it can takes months
to evict a tenant.
To 'eject' an owner requires an appearance
at common pleas court - but once the judge
rules, it's much faster than an eviction.
Again, this is PA process. Maybe a NJ person
can add to this post for modifications per NJ
law.
Thanks....any help and info is greatly appreciated. We are trying to find out how to go about making sure the excess money collected from the sale goes to them and how long it will take to get it, if anyone knows please let me know. I do know that they want to contact an attorney about the way the mortgage comany handled this matter...then mortgage comany has many lawsuits against it already...they were using OCWEN anyone know a good attorney in NJ?
THANKS!!
hi,
it's been awhile since my friends house was purchased at sherriff sale.....they haven't heard anything from anybody yet and the redemption period is well over. They are trying to have the remaining funds from the sale released from the sherriffs department, approximately 90,000 from the sale...hopefully they will be able to do this without an attorney...any tips would be great!! As far as not having heard from the buyer should they do anything or just hang in there while they look for a new home....they were able to get a mortgage company to give them a mortgage with the foreclosure...they don't want to stay in the house any longer then they have to...they are also still maintaining it as far as cutting the lawn and unclogging a drain....they are not in any way abusing the house as you hear in many foreclosure....they have more respect for themselves as well as the legal buyer of the house, after all....it's the the buyers fault what happened to them....anyway, any info would be greatly appreciated!!!
With that much surplus - they really should enlist the help of an attorney to get the proceeds released. It's not a complicated process, but complicated enough that they will want the help. If they insist on doing it themselves, they should call the Clerk of the Court (or even the foreclosure department of the court) and speak to someone about what they need to do.
I wouldn't voluntarily move out untill I knew I would be receiving the surplus - with an "extra" 90K, their relocation options might open up a bit.
Good luck. 8-)
well, it appears that the process for the surplus is underway...now they are trying to get at least a letter showing these funds will be available to them so they can start looking for a new house. they are in the process of researching mortgage companies that will give a loan with the foreclosure ......they also have a substancial down payment so that seems to help ...does anyone know of a mortgage company that would give a mortgage with a foreclosure and at least 80,000 to 90,000 down??? i want them t o get #'s from as many comanies as possible before they sign. Also, they have not yet heard anything from the new owner of the house...is this normal? should they have at least received a letter or something telling them that they purchased the home at the sherriff sale and to contact them??
Sometimes the new owner of the property will just file a motion to receive a writ of possession to avoid conflict. This usually doesn't take too long, but he/she might have more important things to take care of at the time.
Expect the worst, hope for the best.