New Jersey Foreclosure Laws
Attorney General's Office
Trenton, NJ 08625
Ph: (609) 984-9574
Fax: (609) 292-8268
Foreclosure Laws in New Jersey
Judicial Foreclosure: Yes
Non-Judicial Foreclosure: No
Security Instruments: Mortgage
Right of Redemption: Yes. Limited. 10 Days
Deficiency Judgments: Yes. Restricted
Time Frame: 90 Days
Public Notice: Complaint
Judicial foreclosure: New Jersey requires that the lender file
a complaint of foreclosure against the borrower with the superior court of the county
in which the property is located. They must also record a Lis Pendens which constitutes
legal notice that a lawsuit is pending. The lender can sue for the amount in default
only, thus leaving the existing mortgage intact. However any right to a deficiency
a judgment is lost to the lender in this type of foreclosure.
When service is completed: The law requires that a notice of intent
to enter a judgment of foreclosure be sent to the defendant/borrower, offering a
final chance for the borrower to cure the default. If there is no response, a judgment
of foreclosure is entered into the record, and a writ of execution sent to the sheriff
to schedule a sale. The defendant/borrower must be notified of the sale at least
ten days prior to the sale date.
The notice of sale: Must also be posted in the offices of the county,
on the property, and published in two newspapers of general circulation one of which
must be in the county seat or in the largest municipality in the county.
The sale: Is conducted by the sheriff or another county officer.
The successful bidder must pay all settlement charges to the sheriff within 30 days
of the date of sale, or the sale may be declared null and void.
The lender may sue: For a deficiency judgment within three months
of the date of sale, or the date of court confirmation of the sale. The owner in
default has the right to redeem the property and/or objection to the sale for 10
days after the date of sale (or until the sale is confirmed by the court or, in
the event of objection by the borrower, until the court rules on the objection).
A deficiency judgment: Gives the borrower the right to bring an
action to redeem the property within six months of the date the deficiency judgment
was entered. Some New Jersey courts are refusing to confirm sales unless the lender
agrees to limit any deficiency judgment to the difference between fair market value
and the balance due on the loan.