New Jersey Foreclosure Law
New Jersey foreclosures are administered through the court
system. The foreclosure process takes about nine months.
Pre-foreclosure Period
At least 30 days before starting the foreclosure process, the
lender mails a letter to the borrower warning of the impending
foreclosure. During this pre-foreclosure period, the borrower
can prevent the foreclosure by paying off the amount in default.
The lender initiates the foreclosure through the courts and
records a lis pendens (notice of pending lawsuit) with the
county clerk. The lender can sue for either the default payments
or the entire unpaid principal balance on the loan. The borrower
is notified of the foreclosure action in person or by
publication if necessary. After being notified, the borrower has
at least 35 days to respond or the court will make a ruling. If
the court rules against the borrower, a sale date will be
scheduled.
Notice of Sale / Auction
Notice of sale must be posted on the property as well as in
the county office where the property is located. In addition,
the notice of sale must be published in two local newspapers.
One of these publications must be in either the largest
municipality in the county or the county seat. Notice must be
given to the property owner at least 10 days prior to the
scheduled sale. Foreclosure sales are conducted as public
auctions, overseen by the sheriff or another officer of the
county. The property is awarded to the highest bidder, and the
sheriff must transfer ownership to the purchaser within 10 days
following the sale. The court also confirms the sale. The
borrower has redemption rights during the 10 days following the
sale, when any objections are considered by the court.
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