If you face a foreclosure in New Jersey, you probably expect that the bank will carry through with it. You will get a notice, have to leave your home and move on. The bank will sell your home and recoup some of its investment. However, this is not always what happens. There is the possibility that your bank could walk away from the foreclosure. If this happens, it could mean bad things for you.
The main objective during a foreclosure for the bank is to get its money back. If you stop paying, the bank takes back the property and sells it to someone else. Forbes explains that there are times when a bank does not complete the foreclosure, which results in a zombie title.
A zombie title is when the bank forecloses on your property but does not remove your name from the title. This leaves you responsible for the property. You could have to pay for damages, repairs and other costs associated with it even if you no longer live there. A good example is having to pay a fee to the city if the lawn becomes overgrown. You also have to pay taxes on it. This could get costly.
The bank does not have to tell you it is stopping the foreclosure process. You have to make sure it gets finalized. Your name is on the title until someone else buys the property. Make sure you watch for when it sells. This information is for education and is not legal advice.