Forclosure Law In NJ
Hello,
I am a newbie I hope you do not mind a few elementray questions:
1. Where can I get a copy of the foreclosure law in NJ. ?
2. Is buying foreclosure houses at auction in NJ a 'safe' business in view of the foreclosure law.
Thanks in advance for your response.
Regards
QM
Do a google search to find a copy of the NJ Fair Foreclosure Act of 1995.
I'm not an attorney, and I won't can't on your question from a legal point of view....
But from a practical perspective, the acquisition of property via Sheriff's Sale is lawful, and can be profitable. The risk incurred is not from the legalities, but rather your own expertise and ability to perform due diligence.
In general, you do not have access to these properties prior to Sheriff's Sale. It will be difficult to accurately guestimate it's condition, or speculate on needed repairs. The property might also come with hostile tenants (former owners or former owner's tenants).
You should also be aware of WHAT you are bidding on. In some cases, a junior lienholder forecloses... leaving the superior lien in place including, but not limited to a senior mortgagee, property tax lien, or an IRS lien.
Thank You shortsalespro for the advise. Here is another question that has intrigued me. It is related to NJ:
Can you "assume" the sellers loan in NJ in case of a pre-foreclosure property. By assumption of loan I mean that you execute an agreement with the seller and simply take over his remaining payments, pay some (small) amount to the seller for moving out . The balance loan(s) on the house are transferred to you wtihout any closing ??
Thanks
QM
"By assumption of loan I mean that you execute an agreement with the seller and simply take over his remaining payments, pay some (small) amount to the seller for moving out . The balance loan(s) on the house are transferred to you wtihout any closing ?? "
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Irrespective of your agreement with the Seller, the Seller would remain liable for the debt unless the mortgagee allowed for your assumption of the mortgage.
Typically, the mortgagee would require points, or increase the face rate of interest.
I think what you want is more in keeping with a purchase subject to the existing mortgage. (I don't know much about that, and I don't want to.) Again, the former homeowner would remain liable for the debt.