If you are facing foreclosure in New Jersey, it’s important to understand some of the basics, including:
- the most common type of foreclosure procedure (judicial v. nonjudicial) used in New Jersey
- how much time you have to respond
- your rights and protections in the process, and
- what happens afterwards (for example, whether you’ll be liable for a deficiency judgment).
Below we have outlined some of the most important features of New Jersey foreclosure law. Keep in mind that this is just a summary; we’ve included statute citations so you can get more details from the laws themselves. And be sure to check out Nolo’s extensive Foreclosure section, where you can find information about all aspects of foreclosure, definitions of foreclosure terms (like redemption and reinstatement), and options to avoid foreclosure.
|
Topic |
State Rule |
|
Most common type of foreclosure process |
Judicial |
|
Time to respond |
Foreclosing party must send notice, by registered or certified mail, return receipt requested, to homeowner 30 days before filing a foreclosure lawsuit. Foreclosing party must also post notice on the property four times in four weeks before filing suit or publish notice in two newspapers and mail notice to the homeowner and other parties. |
|
Reinstatement of loan before sale |
Available up to date of final judgment of foreclosure. Judgment may be delayed if homeowner needs extra time to reinstate. |
|
Redemption after sale |
If mortgage holder obtains a deficiency judgment, homeowner can bring action for redemption within six months after deficiency judgment is entered. |
|
Special protections for foreclosures involving high-cost mortgages |
Foreclosure must be filed in court. Six-month
forbearance of foreclosure proceeding may be requested in order to pursue
mediation. Home Ownership Security Act, |
|
Special state protections for service members |
N.J. Stat. Ann. §§ 38:23C-1 to 38:23C-26 |
|
Deficiency judgments |
May be obtained by filing a separate lawsuit within three months of sale; amount limited to difference between loan and fair market value. |
|
Cash exempted in bankruptcy |
About $12,725 for one person, $25,450 for a married couple under federal bankruptcy exemptions. $1,000 under state bankruptcy exemptions |
|
Notice to leave after house is sold |
None |
|
Foreclosure statutes |
N.J. Stat. Ann. §§ 2A:50-1 to 2A:50-21, 2A:50-56
to |
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