Both New Jersey and New York are judicial-foreclosure states: a mortgage lender must sue in state court to foreclose. NJ takes roughly 9–12 months from the first missed payment to sheriff sale; NY typically takes 12–24 months — giving NY homeowners even more time to negotiate or restructure.
The Automatic Stay Stops Foreclosure Immediately
Filing Chapter 13 triggers the 11 U.S.C. § 362 automatic stay — all foreclosure activity halts at once, including a sheriff sale scheduled for the next day. Song Law Firm files emergency petitions for clients facing imminent sale.
Repayment Plan Structures
Cure and Maintain
Catch up arrears over 36–60 months while staying current on the regular mortgage. Example: $30,000 in arrears spread over 60 months equals $500 per month plus the current mortgage. Upon plan completion, the loan is fully reinstated.
Lien Strip (Removing a Second Mortgage)
If the home’s value is less than the first mortgage balance, second or third mortgages can be reclassified as unsecured debt — paid only in part, then discharged. Song Law Firm reviews the appraisal to determine eligibility.
NJ Loss Mitigation Mediation Program (LMMP)
NJ mandates loss-mitigation mediation in foreclosure cases. Homeowners meet a mediator face-to-face with the lender to negotiate installment plans, rate reductions, or extended terms. Pairing LMMP with Chapter 13 often produces better outcomes.
NY Mandatory Settlement Conference (CPLR § 3408)
New York requires a mandatory settlement conference under CPLR § 3408 at the early stage of every residential foreclosure. A court-appointed referee brings both sides together to evaluate loss-mitigation options. Active homeowner participation greatly increases the chance of restructuring or avoiding sale.
FAQ
Q. Can I file after the sheriff sale is scheduled?
Yes. A Chapter 13 petition can be filed up to the moment of sale, and the automatic stay halts it. The closer to the sale date, the tighter the timeline — Song Law Firm handles emergency filings.
Q. What if the home is jointly owned but only one spouse files?
The home itself is protected, but the non-filing spouse remains vulnerable to separate collection. Joint filings are generally safer.
Our Commitment
Song Law Firm helps Korean American clients across NJ and NY navigate every step — pre-filing creditor negotiations, asset protection strategy, and post-discharge credit recovery — in Korean, English, and Chinese. Our team serves Fort Lee, Bergen County, Hudson County, and the broader NJ–NY metro area.
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This column is for general informational purposes only and is not legal advice on any specific matter. Reading this article or contacting Song Law Firm does not create an attorney–client relationship. Please consult a qualified attorney for advice on your particular situation.
