What is foreclosure? In New Jersey this is a legal proceeding meaning the bank actually files a complaint in a New Jersey court to take back your house and sell it to pay off the entire amount you owe.

How do I know I am in foreclosure? In New Jersey the law requires the bank to send a certified letter called Notice of Intent to Foreclose-and no it does not matter if you accept the certified letter or not. This starts the clock. About a month after that you will be personally served with a copy of the foreclosure complaint. Yes, this means someone finds you and hand delivers a copy.  It does not matter if you touch it or not and under no circumstances give the server a hard time-don't shoot the messenger. It will only add to your problems and they are not from the bank, but from the Sheriff's office.

How do I try for a modification? Go to the Hope Now website or the United States Housing and Urban Development website and find a housing counselor.

Is there a way to save my house? Yes, if you can't workout with the bank or get a loan modification you can force the bank to work with you via a bankruptcy proceeding.

Once foreclosure starts how much time do I have?

If you want to save your home you must start right away. If you wish to do a Chapter 13 bankruptcy in New Jersey so that you can stay in your home you must file BEFORE the Sheriff's Sale. If you wait until Sheriff's sale you will be given only 2 weeks to move. It was a 6 month process, but now is taking as long as year.