Most of the time, homeowners have the best chance to stop foreclosure before the sheriff’s sale happens. But if your home has already been sold, it’s not always too late. You still have a chance to get your house back through what’s called the foreclosure right of redemption.
In this article, we’ll explain how New Jersey’s right of redemption works, how long you have to act, and what options may be available to pause your foreclosure redemption period if you need more time.
Contact Denbeaux Law today for a free consultation to learn more about how you can get your house back after foreclosure.
What is the Right of Redemption in Foreclosure?
The right of redemption in foreclosure gives homeowners one last opportunity to keep their home after the sheriff’s sale. Not every state offers this protection, but New Jersey does.
As part of New Jersey’s judicial foreclosure process, homeowners have a 10-day redemption period on foreclosure that begins immediately after the sheriff’s sale. During this time, the homeowner can “redeem” the property by paying the full sale price, along with any fees, interest, and taxes.
If the payment is made within the redemption period, the foreclosure sale is canceled, and ownership stays with the original homeowner. If the payment is not made before the 10-day redemption period expires (and the court confirms the sale), ownership will transfer to the new buyer, and the right to redeem is lost.
The right of redemption is meant to give homeowners one final chance to save their home, but it has a short and strict deadline. However, in some cases, there are legal actions that can potentially extend or pause the foreclosure redemption period deadline.
Options to Pause or Delay the Redemption Period in Foreclosure
In New Jersey, the redemption period in foreclosure is 10 days. While that’s a short turnaround time, there are a few legal strategies that can temporarily pause or delay the timeline, giving you more time to act.
Filing a Motion to Vacate the Sheriff’s Sale
If you believe something about your foreclosure or the sheriff’s sale was mismanaged, you can file a motion to vacate the sheriff’s sale. This motion asks the court to cancel or reopen the sale due to mistakes, violations, or misconduct.
Common legal grounds to file this motion include:
- Improper notice of the sale date
- Violations of the legal foreclosure process
- Lender fraud, such as dual tracking
Once the motion is filed, the 10-day redemption period is paused until the court makes a decision. If the court agrees, it can set aside or redo the sale, giving you another opportunity to redeem the property or negotiate with your lender. If the motion is denied, the 10-day window restarts where it left off.
Filing for Bankruptcy
Another option to temporarily pause the foreclosure redemption period is to file for bankruptcy before the 10-day period expires. When you file, an automatic stay goes into effect immediately and temporarily stops all foreclosure-related activity. During this pause, you may be able to reorganize your debt through Chapter 13 bankruptcy or negotiate a repayment plan to help keep your home.
Because bankruptcy can have long-term effects on your finances, it’s typically not the best option to prevent foreclosure. If you are considering bankruptcy, you should speak with an attorney first to make sure it’s the right decision for your situation.
Vacating the sheriff’s stay and getting an automatic stay don’t stop the foreclosure process itself. However, they do buy you more time to plan how to get your house back after foreclosure.
What Happens If You Miss The Redemption Period Deadline?
Once the 10-day redemption period for foreclosure expires and the court confirms the sale, ownership officially transfers to the buyer, and the right to redeem is gone.
Once that happens, the new owner can move forward with eviction proceedings, and you’ll lose all legal rights to the property. At that point, the next best step is to speak with a foreclosure attorney to determine whether there are any legal grounds to challenge the sale, such as lender violations or errors in the foreclosure process.
Even after the redemption period ends, there may still be options to delay eviction, contest the sale, or pursue damages if your lender mishandled your case.
Work with a Foreclosure Attorney to Save Your Home From Foreclosure
Even if your home has been sold at a sheriff’s sale, you can still save your home. A foreclosure attorney can file motions to challenge decisions or delay the foreclosure deadline, make sure no deadlines are missed, and review your case to see if your lender made any mistakes or broke New Jersey’s foreclosure laws.
Even if your 10-day redemption period has already passed, it’s still worth getting legal help. An attorney can look for problems in how your case was handled, like missed notices or payments that weren’t applied correctly. If something wasn’t done correctly, your attorney may be able to ask the court to reopen or reverse the sale and give you another chance to save your home.
If your property was sold at a sheriff’s sale, or you’re worried it might be, contact Denbeaux Law today to schedule a free consultation. We’ll review your case, explain your options to save your home, and help you take action.
