New Jersey Foreclosure Law Summary and Process

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The entire foreclosure process in New Jersey is about 12-13 months. This means from the first payment you miss, until the property is sold by the Sheriff, takes a little over a year.

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Judicial Foreclosure Available: Yes
Generally, in judicial foreclosure, a court decrees the amount of the borrowers debt and gives him or her a short time to pay. If the borrower fails to pay within that time, the clerk of the court then advertises the property for sale. Non-Judicial Foreclosure is not available in New Jersey. In New Jersey, lenders foreclose on a mortgage in default by using the judicial foreclosure process. In simple terms, it requires a court approval to foreclose on your property.

Primary Security Instrument: Mortgage
The mortgage you gave the lender when you purchased the house, was you borrowing money and using the home as collateral. This makes their position on your house a secured one. They can use that instrument to foreclose and take the property back when you stop making payments to them.

Timeline: Typically 90 days
If you miss three payments (about 90 days), the lender has a right to start the foreclosure process. Once the process starts, legal fees and late fees begin to add up fast. Plus, the payments you missed are added to the principal balance. The entire foreclosure process in New Jersey is about 12-13 months. This means from the first payment you miss, until the property is sold by the Sheriff, takes a little over a year. Depending on your lender, it could be faster. Don't wait to call a professional.

Deficiency Judgments Allowed: Yes
It is possible for the lender to obtain a deficiency judgment if the property is sold at Sheriff sale for less than what is owed. In negotiations with a Short-Sale, we negotiate to have all deficiency judgements released and forgiven.

Sheriff Sale of Property
A property sheriff sale notice must be: 1) posted in the county office of the county where the property is located; 2) notice from sheriff's office delivered to borrower; and 3) published in two (2) newspapers in the county. The lender must also notify the borrower at least ten (10) days prior to the sheriff sale.

Right of Redemption: Yes
A right to redemption and/or objection within ten (10) days after the sale is possible. This means you have the right to take the property back, if you pay the full amount of your mortgage and fees. This must happen within 10 days after the sale.