STATE FORECLOSURE PROCEDURES - NEW JERSEY
NEW JERSEYConveyance is by bargain and sale deed with covenants against grantors’ acts (equivalent to a special warranty deed). Mortgages are the most common security instruments though deeds of trust are authorized. Foreclosures require judicial action which takes 6-9 months if they're uncontested. - 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 ForeclosureGenerally, in judicial foreclosure, a court decrees the amount of the borrower’s 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.
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