Summary of New Jersey's Foreclosure Laws

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
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. For residential mortgages only, 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 to the mortgagor and other parties.
Reinstatement of loan before sale	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. Home Ownership Security Act, N.J. Stat. Ann. §§ 46:10B-22 to 10B-35
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 $11,000 for one person, $22,000 for a married couple under federal bankruptcy exemptions
Notice to leave after house is sold	Former owner is not entitled to notice to leave.
Foreclosure statutes	N.J. Stat. Ann. §§ 2A:50-1 to 2A:50-21, 2A:50-56 to 2A:50-58