New Jersey Laws

All New Jersey foreclosures must be pursued through a series of judicial proceedings. The lender begins the process by issuing the homeowner a Notice of Default informing them of the amount they owe and the impending threat of foreclosure. If the homeowner still does not provide payment within an additional thirty days, the lender may file a suit against the homeowner in court known as a Lis Pendens. This suit can either be for the default amount owed or the entire value of the loan provided and the termination of the mortgage. Once a suit is filed the homeowner is given an additional 35 days in which to pay off the default debt owed, after which point the court will rule in favor of the lender if payment is not provided. A foreclosure sale will then be scheduled and carried out.

Before a foreclosure sale begins, a Notice of Sale must be published in two local newspapers, one of which must be a newspaper based in the largest town in the county. The Notice must also be posted on the property facing foreclosure and the county courthouse office wall. The homeowner must be served with the Notice of Sale at least ten days before the sale is to occur.

One the day of the sale, the Sheriff auctions off the homeowner's property to the highest bidder. Once payment has been procured, the court will schedule a confirmation hearing within ten days. The homeowner has these ten days to redeem ownership by paying the full sale price or may challenge the sale at the confirmation hearing. Once a court confirms a sale, the winning bidder assumes all rights to ownership and the original homeowner loses all rights to redemption.

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