Walking away in New Jersey

JerseyCity07305

LoanSafe Member
Feb 28, 2010
137
3
0
Yes, when plaintiff lets the case hang with no activity for over 1 year, the court wants it off the docket. I've noticed quite a few of these actually do get dismissed by the court.

But check out F-001281-12. After the warning was filed, counsel came back with a Final Judgment.

And in F-001276-12, F-001278-12, and F-001073-12, counsel came back and filed an "AFFID EXCEPT CI." I'm guessing this is an "Affidavit of Exceptional Circumstances." Meaning they will probably soon be filing something else. I'm very curious about it however and will request a copy of some records to see what it is.

There are a LOT of these dismissals in ACMS. Gotta wonder what's going on when they let cases go by the wayside even after the court notifies them.

Are you saying this motion was filed and you did not get a copy in the mail? That's crazy. All parties should know such a motion was filed. The pro se is mistreated in so many ways. If you had counsel, he/she would have been notified - I surmise.

Yours was granted, so I think it's over for now. Though there may be some other motion they can file. Don't know about that. I can tell you I have searched through hundreds upon hundreds of cases in ACMS and I have never seen counsel file anything after the court order to dismiss was granted.

Did you have any counterclaims in your answer?
The only thing I received during this entire process was the initial complaint in '12.

Nothing was contested in the complaint (I did not file answer with court). It's been my intention all along to allow this to proceed as an uncontested foreclosure.

Based on your research into ACMS, it's looking like another suit will need to be filed by Fannie. Assuming that's the case, is it possible I'm looking at another four years of this? Has anyone ever heard of the process taking eight years to complete? I can't believe Fannie would allow that to happen. Unless there is something in the documentation surrounding the property that is complicating matters - I don't know. But you would think a simple motion could buy them additional time (such as AFFID EXCEPT CI that you mentioned).

I'm sure there's a valid reason. Regardless, I'm a bit confused what happens next and how long this process will continue for.
 

PatZZ

LoanSafe Member
Jan 30, 2011
2,026
157
63
Nearby
The only thing I received during this entire process was the initial complaint in '12.

Nothing was contested in the complaint (I did not file answer with court). It's been my intention all along to allow this to proceed as an uncontested foreclosure.

Based on your research into ACMS, it's looking like another suit will need to be filed by Fannie. Assuming that's the case, is it possible I'm looking at another four years of this? Has anyone ever heard of the process taking eight years to complete? I can't believe Fannie would allow that to happen. Unless there is something in the documentation surrounding the property that is complicating matters - I don't know. But you would think a simple motion could buy them additional time (such as AFFID EXCEPT CI that you mentioned).

I'm sure there's a valid reason. Regardless, I'm a bit confused what happens next and how long this process will continue for.

Everybody wants to know how long things will take, but nobody knows. That would be the million dollar answer. Every case is different too.

You say it's been 4 years, but the actual foreclosure process in your case was just under 2 years, right? In the 4 years, you are including all the time you didn't make payments. If/when they refile, the process could take 2 years again. Or it could take 1 year because perhaps the courts won't be as busy. It's a crap shoot. I've read stories of people fighting foreclosure for over 7 years - the same case. The key word is "fighting." Not answering makes the game easier for them.

Enjoy the time you have with no payments. I'd say you were quite lucky. I'd spend the time trying to figure out what about my case warranted them to stop the foreclosure and be ready to fight back when they refile. Maybe there's a defense you don't know you have. I tend to think it's not a matter of your case falling between the cracks since the foreclosure mill attorney sends monthly updates to their clients with the status of all cases.
 

ooodsie

LoanSafe Member
Apr 25, 2009
80
0
0
I need some advice...
A few years ago we put a tenant in the house, and the agreement we had with her was that she got a SUPER discounted rent (half of market value) in exchange for her doing all repairs, since we obviously werent going to pay for repairs while in foreclosure. So it worked out well.. until last week. The back roof is leaking and needs to be replaced. Quotes are around 3k. We aren't willing to put 3k into a house that is in foreclosure. The tenant doesnt have the money either, and said she thought when we said "as is" we meant small repairs, not major things like a roof (really??) .. So she's giving her notice and terminating the lease. I had just gotten the foreclosure notice last month and sent it back contested. I am now kind of regretting that because if she's leaving we may as well speed up the foreclosure, not slow it down. What would you guys do? Try to fix it and find a new tenant who will accept it as is? Or just let it go at this point?
 

TomEason

LoanSafe Guide
Jun 18, 2009
12,390
85
48
SF Bay Area CA
ooodsie

Thanks for your post.

If it were me, I'd repair the roof leak and re-rent the property.

As I'm sure you know, the FC timeline in NJ is in excess of two years. That's a long time to leave the property vacant and forgo rental revenue.
 

ooodsie

LoanSafe Member
Apr 25, 2009
80
0
0
I wonder if I should have just agreed to repair it with the current tenant in place.. Although, then with our luck the heater or something else would have gone and she'd expect that repaired too. I don't want to get into the habit of dumping thousands of dollars into this house and dealing with repairs.
 

ooodsie

LoanSafe Member
Apr 25, 2009
80
0
0
oodsie

Thanks for your post.

I recommend you NOT enter into that sort of agreement with a new tenant.
Oh.. how come?
At this point, we do not want to be landlords constantly getting phonecalls about fixing things since the house is older and things could come up often. We can't afford to spend a few thousand on the roof, and then in a few months have to spend money on other things... I thought it was a smart way to go about it. But maybe not? If we knew we'd have the house for a set amount of time it may prove worthwhile, but my worst fear is we drop 3k on the roof and god knows what else and wind up only getting a few more months out of it before we end up with it foreclosed on finally. (we're already 3.5 years into this, I feel like the end has to be near?)
 

ooodsie

LoanSafe Member
Apr 25, 2009
80
0
0
I also feel really shady about advertising it for rent and finding a new tenant knowing fully well we are in foreclosure. Do you guys tell the new tenant this?
 

TomEason

LoanSafe Guide
Jun 18, 2009
12,390
85
48
SF Bay Area CA
ooodsie

Because it's not how professional landlords and property managers would do it.

I recommend you use a month-to-month rental agreement, as opposed to a longer lease.

Since you're concerned with maintenance issues, you might add a maintenance addendum to your rental agreement, requiring the renter to pay for the first $150 (as an example) of any tradesman's bill. This is what I do on my rental agreements. I also add a clause that all appliances are on loan; the landlord doesn't agree to make any repairs. But the landlord agrees to remove the appliance at his expense, but will not replace it.

It's recommended that the owner NOT advise the tenant of the status of the loan.
 

JayNJ

LoanSafe Member
Aug 10, 2012
21
1
1
ooodsie

Because it's not how professional landlords and property managers would do it.

I recommend you use a month-to-month rental agreement, as opposed to a longer lease.

Since you're concerned with maintenance issues, you might add a maintenance addendum to your rental agreement, requiring the renter to pay for the first $150 (as an example) of any tradesman's bill. This is what I do on my rental agreements. I also add a clause that all appliances are on loan; the landlord doesn't agree to make any repairs. But the landlord agrees to remove the appliance at his expense, but will not replace it.

It's recommended that the owner NOT advise the tenant of the status of the loan.
I also just got a new renter and went back and forth about whether to tell them about the FC or not, I decided not to tell them for now.
There is a pdf file titled "Rights of tenants in foreclosed homes" or something similar. Basically, a change of ownership is not a reason to evict in NJ, so if there is a written lease, the new owner is supposed to honor it. They may offer cash for keys for tenants to leave, but the new owners would have to take them to court to evict.

What I am now concerned about is: if I am renting the place and it is not owner occupied, do I still get the anti deficiency protections under njac? such as using FMV to calculate deficiency, and the requirement for the lender to bring suit 90 days following FC to get a deficiency judgement. Does anyone have info on that?
 
  • Like
Reactions: airahcaz

airahcaz

LoanSafe Member
Sep 18, 2010
302
2
18
NJ
I found this and am also desperately searching for any cases of DJ where the home was under water. Clearly the sum of the first and second mortgages would be more than the FMV by definition, thus a Short Sale or FC. Anyone find an actual case of a DJ within 3 months of a FC?

"
Deficiency judgments are allowed in New Jersey, but not in the foreclosure action itself. To obtain a deficiency judgment, the lender must file a separate lawsuit within three months after the foreclosure sale or, if confirmation of the sale is required, from the date of the confirmation of the sale (N.J. Stat. Ann. § § 2A: 50-1 through 2A:50-2.1).
The court may limit the amount of the deficiency judgment if the borrower disputes it. The borrower may dispute the amount of the deficiency by answering the lender’s suit and introducing evidence regarding the property’s fair market value. The court will then limit the deficiency judgment amount to the difference between the debt and the fair market value as of the date of the foreclosure sale (N.J. Stat. Ann. § 2A: 50-3). The homeowner loses the right of redemption by contesting the amount of the deficiency (N.J. Stat. Ann. § 2A:50-5)."
 

vondes

LoanSafe Member
May 28, 2017
6
0
1
32
I would suggest you contact a lawyer and just ask a few of the highest priority questions you might have. I think what you'll start to see is most lawyers will tell you Dj's are rare in NJ. Now there is absolutely no guarantee that this won't change in the future but for now, that seems to be the story.