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It is generally troubling to learn that the government wants to seize your land. However, if you can longer afford your mortgage and are facing a possible foreclosure, you may not be as distressed to learn of a possible eminent domain action so long as you received enough compensation for your land. If the fair value of your land is more than your mortgage balance, you may get out from under your mortgage and start over on a new property all at the same time.
This situation is generally not as simple at is may seem at first, however, for different reasons. First, if you owe more on your mortgage than the city offers to pay you, you may understandably be reluctant to accept the offer. In such a situation, you and your attorney will have to negotiate with the city to ensure you receive the full amount you deserve for the condemnation, which can take time.
In the meantime, your mortgage lender may try to be involved in the condemnation case to negotiate for a higher compensation value for the land it is trying to foreclose upon. In one case out of New Jersey,1 a landowner did not properly reject the offer from the city for the condemnation. Because a foreclosure case was pending, the lender tried to intervene, stating that it had the right to negotiate in the eminent domain case.
The NJ court, however, ruled that only the entity that held actual title/deed to the land had the right to negotiate. If a lender has not yet completed the foreclosure and received the deed, it does not have the right to be involved in negotiations.
Call Experienced Condemnation Lawyers in New Jersey for Assistance
Eminent domain cases can become significantly more complicated if your property is in foreclosure. In addition, if you are behind on your mortgage, it is critical that you get enough compensation in your condemnation so you are not left with a mortgage balance and no property. If you have been notified of an eminent domain action regarding your land, you should discuss you situation with a skilled NJ eminent domain attorney as soon as possible. Call Sever Storey, LLP at 888-318-3761.
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