Property mortgage foreclosures in the State of New Jersey are processed in court. The entire procedure takes about a period of nine months to complete.

The process would be initiated by the lender once a default of payment occurs. The lender is required to issue a notice of initiating the foreclosure procedures, upon default of payment, within a period not less than 30 days from the date of beginning the foreclosure procedure. During this period of notice, the borrower has the choice of halting further proceedings and preventing the foreclosure by remitting entirely the amount in default.

The lender starts the foreclosure procedure through the court procedure, by first recording a lis pendens (Pending Lawsuit notice) against the borrower with the county clerk. The lender has the option of suing the borrower for either the payments in default or for the entire principal payment left unpaid on the loan availed. A notice of the foreclosure action is sent to the borrower in person. The notice of foreclosure may also be published, if it is so required.

After the borrower is properly notified, the borrower has a period of at least 35 days to file the response, failing which the court shall pass its ruling. A foreclosure sale will be scheduled if the ruling of the court is against the borrower.

Once the court rules the foreclosure against the borrower, the notice of sale is required to be put up conspicuously on the concerned property, in addition to a posting in the office of the county in which the property is situated. Besides, the notice of foreclosure sale should be published in the columns of two local daily newspapers. At least one of the publications should be in the municipality which is the largest in the county, or in the seat of the county.

Notice of the intended foreclosure sale must be issued to the owner of the property within a period not less than 10 days before the date of foreclosure sale.

Realty foreclosure sales in the State of New Jersey are public auctions, which are supervised by the county Sheriff or any other officer of the county. Any member of the public can bid for the property. The property shall be awarded to the highest bidder, and the winning bidder must be transferred the ownership rights of the property by the Sheriff within a period of 10 days from the date of completion of the sale.

Objections, if any, to the foreclosure and other issues in connection with the property sale shall be considered by the court in the intervening period of 10 days between the sale and the confirmation of the sale.

If you need more information about New Jersey foreclosure laws, you should contact a foreclosure lawyer, or contact us so we can recommend one for you.