BEWARE MISLEADING NOTICES OF INTENT TO FORECLOSE
A NOTICE OF INTENT TO FORECLOSE CANNOT CLAIM THAT A FORECLOSURE HAS BEEN FILED. SENDING THE NEW JERSEY COURT MEDIATION PACKET MAY BE IMPROPER.
YOU SHOULD NOT RECEIVE A PACKET OF DOCUMENTS THAT LOOKS LIKE THIS:
Click here to see a full example of an incorrect Foreclosure Mediation Packet
Starting in November, NJ Law Requires Lenders to Send Mediation Information with Notice of Intent to Foreclose
On April 30th, Governor Phil Murphy signed a package of bills into law addressing several aspects of the NJ foreclosure crisis. These new laws are designed to help New Jersey homeowners facing foreclosure stay in their homes and prevent a sheriff sale.
One of these new laws, A664, goes into effect on November 1, 2019 and requires that when lenders send a Notice of Intent to Foreclose, they must also send written notice advising homeowners that, if a complaint is filed, they have the right to participate in the Court’s New Jersey Foreclosure Mediation Program. This law, also known as the “New Jersey Foreclosure Mediation Act,” is designed to assist homeowners and lenders in finding an alternative to foreclosure through mediation. However, the new notice cannot claim that a foreclosure has been filed.
NJ Lenders CANNOT File for Foreclosure Until the Time Period for the Notice of Intent has Expired
The new law includes several requirements lenders must follow. The Foreclosure Mediation Notice must:
- Be included in the initial Notice of Intent to Foreclose
- Be written in both English and Spanish
- Inform you that you have the right to a free Housing Counsellor
- Explicitly state that the foreclosure has not yet been filed
If your lender files for foreclosure before you receive the mediation notice, it is a violation of the law. If your lender tells you that your are in foreclosure, and a complaint has not been filed, it is also a violation of the law.
PennyMac has been sending improper Notices of Intent to Foreclose. If you have received this document from PennyMac, contact us today to review it.
My Lender Sent Me a Mediation Notice Saying the Foreclosure Has Been Filed. What Should I Do?
If you received a Notice of Intent to Foreclose from your lender with a Foreclosure Mediation notice included, and the Mediation notice says that the foreclosure has already been filed, contact The Law Office of Ira J. Metrick, and we will review the document for you free of charge and help you understand your rights and options.
