- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: No
- Primary Security Instrument: Mortgage
- Timeline: Typically 90 days
- Right of Redemption: Yes
- Deficiency Judgments Allowed: Yes
In New Jersey, lenders may foreclose on a mortgage
in default by using the judicial foreclosure process.
Judicial Foreclosure
Generally, in judicial foreclosure, a court
decrees the amount of the borrowers debt and gives him or her a
short time to pay. If the borrower fails to pay within that time,
the clerk of the court then advertises the property for sale.
Once the process begins, a foreclosure notice must
be: 1) posted in the county office of the county where the property
is located; 2) posted on the property in foreclosure; and 3)
published in two (2) newspapers in the county. The lender must also
notify the borrower at least ten (10) days prior to the foreclosure
sale.
It is possible for the lender to obtain a
deficiency judgment and borrowers have a right to redemption and/or
objection within ten (10) days after the sale.
More
information on New Jersey foreclosure laws.
