What Should I Do If I Receive a Notice of Intention to Foreclose in NJ?
Notice of Intention to Foreclose NJ: Receiving this document (also called the NOI) is the single most critical warning shot in the New Jersey foreclosure process. It is not just a collection letter; it is a legal prerequisite. If you ignore it, the bank will file a formal Complaint against you in 30 days.
However, because the NOI is a strict legal requirement under the Fair Foreclosure Act, it is also one of the bank’s biggest stumbling blocks. If they made a mistake on this letter, we may be able to force them to restart the entire process.
Is Your Notice Valid? (The “Strict Compliance” Rule)
In New Jersey, lenders must strictly adhere to the Fair Foreclosure Act. A “close enough” notice is often legally insufficient. We review every NOI for these common defects:
- Registered Mail: Was the notice sent via registered or certified mail, return receipt requested? Regular mail alone is not enough.
- The “Cure” Amount: Does it list the exact amount needed to bring the loan current? If they included unapproved fees or estimated costs, the notice may be invalid.
- Lender Identity: Does it clearly state the name and address of the actual lender (not just the loan servicer)? NJ courts have dismissed cases where the true owner of the debt was hidden.
- Right to Cure: It must explicitly state that you have 30 days to pay the arrears to stop the foreclosure.
The 30-Day Countdown: What Happens Next?
The Notice of Intent starts a clock. You generally have 30 days to act before the next stage begins.
Day 1: You Receive the NOI
The clock starts. You can stop the foreclosure immediately by paying the “cure amount” listed in the letter.
Day 31: The Foreclosure Complaint
If you have not paid or applied for a modification, the bank’s attorney will file a formal Foreclosure Complaint with the Superior Court in Trenton. Once this is filed, legal fees and court costs are added to your debt, making it even harder to catch up.
Can I Just Pay the Missed Payments?
Yes, this is called “Reinstatement.” If you have the funds to pay the specific amount listed in the NOI (the arrears + late fees), the bank must accept it and return your loan to normal status. You do not need to pay off the entire mortgage balance.
Warning: Do not just mail a personal check. You should usually send certified funds (cashier’s check) via overnight mail with tracking to ensure they credit it before the 30-day window expires.
What If I Can’t Pay? Your Legal Options
If you cannot afford the reinstatement lump sum, do not simply wait for the Sheriff. You still have options:
- Loan Modification: We can help you submit a “loss mitigation package” to modify your loan to lower your monthly payments and move the arrears to the back of the loan.
- Chapter 13 Bankruptcy: Filing Chapter 13 Bankruptcy acts as a “pause button” (Automatic Stay) and allows you to pay back the arrears over a 3-5 year plan while keeping your home.
- Challenge the Standing: If the NOI was defective or the bank lost your paperwork, we can file a defense to dismiss the foreclosure action entirely.
3 Critical Mistakes to Avoid Right Now
When you receive an NOI, panic often leads to poor decisions. Avoid these common errors that can hurt your case later:
- Ignoring the Mail: The problem will not go away. Hiding from the mailman simply guarantees the bank will sue you in 30 days.
- Moving Out Prematurely: You still own the home! The foreclosure process in NJ takes months or years. Do not abandon your property just because you received a notice.
- Signing a “Deed in Lieu” Blindly: The bank may offer to let you “just give back the keys.” Never agree to this without an attorney reviewing the terms, as you could still be liable for taxes on the cancelled debt.
Have You Received a Notice of Intent?
Don’t let the 30-day clock run out. We can review your notice for defects and help you choose the right defense strategy.
Past results do not guarantee future outcomes. Attorney Advertising. Friscia & Associates LLC | 199 Wilson Ave., Suite A, Newark, NJ 07105.
