New Jersey Foreclosure Laws

The judicial foreclosure is the only type of foreclosure used and recognized in the state of New Jersey and the non-judicial foreclosure is not allowed. The only security instrument that is used here is the standard mortgage and the process of foreclosing on a property can take anywhere from ninety to one hundred twenty days to complete from the date of initiation unless the foreclosure is contested. Furthermore the state allows only limited right of redemption for the borrower and a restricted deficiency judgement capability for the lender.

In order to start a foreclosure in the state of New Jersey the lender has to take the borrower to court and get a file a complaint against them in a court in the county in which the property is located. The lender also has to record a legal notice known as a Lis Pendens, which is nothing more than a notice stating that a lawsuit is pending. The lender is only allowed to sue for the mount in default and must leave the mortgage intact.

When this is completed a judgement of foreclosure is entered into against the borrower to settle and cure the default. If there is no response from the borrower, 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 in which the property is located, and published in two newspapers one of which must be in the county seat or in the largest municipality in the county.

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