Summary of New Jersey's Foreclosure Laws

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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 of intention to foreclose, by registered or certified mail, return receipt requested, to borrower 30 days before filing a foreclosure lawsuit. Foreclosing party serves borrower summons and complaint. Notice of sale must be posted on the property and in the sheriff’s office, and published in two newspapers four times in four weeks.

Reinstatement of loan before sale

Available up to date of final judgment of foreclosure. Judgment may be delayed if borrower 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. Home Ownership Security Act, N.J. Stat. Ann. §§ 46:10B-22 to 10B-35.

Special state protections for service members

Provides protections similar to the federal Servicemembers Civil Relief Act to service members on federal active duty or in state military service pursuant to governor's orders. 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; court can limit amount to difference between debt 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:50-53 to
2A:50-63

Updated by: , Contributing Editor

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