Legal Question in Real Estate Law in New Jersey
Foreclosure
Borrower takes a mortgage on a Business Property and gives lender a money note for the same business property. Borrower defaults. Lender files for (1) foreclosure in the County where the property is located and (2) Money for the note where the Borrower lives.
Borrower allows default judgments for foreclosure & money judgment. For Sheriff�s sale, borrower sets an upset price equal to all the moneys owed and permitted. As no person bids higher than the upset price, Borrower repossesses the property for $100.
After repossessing the property, borrower asks for information from the borrower so as to satisfy the money judgment in the county where the borrower lives. (Borrower lives ion a different county than the county where the property was located & foreclosed).
What are borrower�s options?
1 Answer from Attorneys
Re: Foreclosure
Borrower has few options. If there is time and borrower has funds, he may redeem the property by paying the balance due, usually within 30 days of the foreclosure sale. Once this time has passed, foreclosure is final. Property may then be sold, with the sales price to be applied against the balance due on the Note, up to the balance of the Note. If there is a deficiency (Lender has no duty to sell for more than Lender is owed), and may proceed against borrower for any remaining balance due. Thus, borrower may lose the property and still owe the Lender any deficiency between the final sale price and balance of Note.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
