I am a single homeowner in Essex County, NJ and was foreclosed by a credit card debt although my mortgage with Bank of America was current. Is this legal? My home is all I have. Please help me save my home.
Foreclosure is the legal process through which a lender (most typically a mortgage lender) claims an asset from the consumer borrower. Foreclosure is almost always the result of default on payment. A lien is an encumbrance on property. Usually when a plaintiff (a creditor) obtains a money judgment against a defendant (a debtor) that judgment become a lien on the defendant's real property in the country where the judgment is docketed. The lien runs with the land, burdening it until the judgment is paid or the lien expires (usually 10 years, but that varies by state law). Under the common law, any lien holder (aka, judgment-creditor) can can foreclose for other debts, such as for overdue taxes, unpaid contractors' bills, overdue HOA fees, or assessments. Some states restrict the rights of judgment-creditors against homeowners who have completed and filed a homestead declaration. A homestead declaration protects the value of homes of residents from property taxes and creditors. New Jersey Law I am unable to find a New Jersey homestead exemption or declaration law for New Jersey homeowners. I am also unable to find if New Jersey prohibits unsecured creditors, such as a credit card issuer, from foreclosing on a New Jersey resident's residence. I am not licensed to practice law in New Jersey, and am incompetent to advise you on New Jersey law. Consult with a New Jersey attorney who has experience in bankruptcy law. I am not suggesting that bankruptcy is your only option -- it may be a terrible choice for your circumstances -- but a bankruptcy attorney will know if New Jersey offers a homestead exemption, and what rights judgment-creditors have when pursuing a judgment-debtor.
Foreclosure is the legal process through which a lender (most typically a mortgage lender) claims an asset from the consumer borrower. Foreclosure is almost always the result of default on payment. A lien is an encumbrance on property. Usually when a plaintiff (a creditor) obtains a money judgment against a defendant (a debtor) that judgment become a lien on the defendant's real property in the country where the judgment is docketed. The lien runs with the land, burdening it until the judgment is paid or the lien expires (usually 10 years, but that varies by state law). Under the common law, any lien holder (aka, judgment-creditor) can can foreclose for other debts, such as for overdue taxes, unpaid contractors' bills, overdue HOA fees, or assessments. Some states restrict the rights of judgment-creditors against homeowners who have completed and filed a homestead declaration. A homestead declaration protects the value of homes of residents from property taxes and creditors. New Jersey Law I am unable to find a New Jersey homestead exemption or declaration law for New Jersey homeowners. I am also unable to find if New Jersey prohibits unsecured creditors, such as a credit card issuer, from foreclosing on a New Jersey resident's residence. I am not licensed to practice law in New Jersey, and am incompetent to advise you on New Jersey law. Consult with a New Jersey attorney who has experience in bankruptcy law. I am not suggesting that bankruptcy is your only option -- it may be a terrible choice for your circumstances -- but a bankruptcy attorney will know if New Jersey offers a homestead exemption, and what rights judgment-creditors have when pursuing a judgment-debtor.