Foreclosure Guidelines in New-Jersey

Highlights:

Judicial/ Non-Judicial Foreclosure: Available/ Not-Available

Right of Redemption / Deficiency Judgment: Yes / Yes

Timeline: 90 Days, Can vary depending on individual cases

Deed of Trust / Mortgage as Security Instruments: Mortgage

Only the Judicial foreclosure processes is followed in New-Jersey.

Judicial Foreclosure process:

In a Judicial foreclosure process, the lender files a lawsuit in a court of law if the borrower defaults on their mortgage payment. The court checks if the borrower has defaulted on the loan and if the same is confirmed, it determines the amount to be paid by the borrower and gives them some time to do so. If the borrower does not pay up during that time, the court issues an order authorizing the foreclosure sale.

Once the court order is issued, a foreclosure notice is pasted on the property, recorded in a county office present in the location of the property, advertised in at least two local newspapers available in the county where the property is located.

This notice needs to be sent to the borrower at least ten days prior to the date of the foreclosure sale. The lender can file for a deficiency judgment in case the total amount offered by the highest bidder during the auction is less than the loan amount due to them / borrowers can re-claim their property using their right of redemption by paying up all the dues within ten days after the foreclosure sale.