New Jersey foreclosure law

New Jersey foreclosures are carried out in the judicial process, which means a lender has to go to court before he or she can foreclose. Mortgages are considered primary security instruments, but not deeds of trust. The average New Jersey foreclosure lasts about 90 days, or roughly three months.

In a judicial foreclosure, the court issues a decree stating the amount of debt the borrower owes, and a short time frame within which it should be paid. If the deadline isn’t met, the clerk of court publishes a notice stating that the property is up for sale.

Once foreclosure is declared, the notice must be posted at the office of the county where the home is located, as well as the property itself. It should also be published in at least two newspapers with regular circulation in the county. At least ten days before the sale date, the lender also notifies the borrower of the foreclosure.

After the sale, the borrower has a Right of Redemption of ten days. Within this time, he or she can file an objection or regain possession of the home by paying the foreclosure sale price, plus fees. Lenders can also seek a deficiency claim, a personal claim against the borrower, if the sale does not cover the unpaid balance.

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