New Jersey Foreclosure Laws and Procedures

The Fair Foreclosure Act and other New Jersey foreclosure laws govern the foreclosure process in New Jersey. These laws require lenders to follow strict timelines and provide homeowners with multiple opportunities to resolve a mortgage default.

The process typically begins 120 days of missed mortgage payments. If you can't resolve the mortgage delinquency during this time, the lender files a foreclosure complaint, initiating a court-supervised timeline.

During the New Jersey foreclosure process, you have the right to participate in mediation and get other opportunities to avoid foreclosure, like by reinstating the loan or applying for a loss mitigation option. In addition, recent reforms, such as the Community Wealth Preservation Program, provide a way for a foreclosed homeowner (and other eligible buyers) to repurchase their home at the foreclosure sale.

Homeowner Rights During New Jersey Foreclosure Proceedings

In New Jersey, you're entitled to several important rights during the foreclosure process, including the right to:

• receive a preforeclosure notice as required by state law
• be protected from "dual tracking" (where the lender pursues foreclosure while also evaluating you for alternatives)
• participate in foreclosure mediation
• be notified of the foreclosure and given the opportunity to respond
• bring your loan current to prevent a foreclosure sale
• pay off the loan to stop the sale
• repurchase your home through the sheriff's sale process at the "upset price" (as explained below)
• redeem your home after the foreclosure sale, and
• receive any surplus funds from the foreclosure sale.

By understanding the foreclosure process in New Jersey, you can better navigate the situation and protect your rights.

When Does the Foreclosure Process Begin in New Jersey?

If you don't make your mortgage payments, you will be considered in default. In the past, the mortgage lender typically started the foreclosure process when you had missed three or more payments but could initiate foreclosure proceedings after just one missed payment.

Now, under federal law, in most cases, the lender can't officially begin the process by filing a foreclosure complaint until you're more than 120 days delinquent. (12 C.F.R. § 1024.41 (2025).)

Key Steps in the New Jersey Foreclosure Timeline

Again, if you default on your mortgage payments for your home in New Jersey, the foreclosure will be judicial. New Jersey law governs the process.

Notice of Intention to Foreclose

Under the New Jersey Fair Foreclosure Act, before filing a complaint in foreclosure, the mortgage lender must send the homeowner, via registered or certified mail, return receipt requested, a Notice of Intention to Foreclose. The lender must send the notice at least 30 days but not more than 180 days before filing a complaint.

The notice notifies you that you are behind in your mortgage payments and gives you 30 days to cure the default. The law also requires that the following information be included in the notice:

• A description of the lender's interest in the property, including notification that the lender has a mortgage on the property and the name and address of the lender and its representative, if any.
• The reason that the lender is trying to foreclose on the property. For example, you have missed mortgage payments.
• Information about your right to cure the default and how to do so. Under the right to cure, if you pay the full amount owed, the mortgage lender must accept it and reinstate the mortgage (see below for more on reinstating a mortgage loan). During this time, the lender can't charge attorneys' fees or court costs.
• A statement of how much you must pay to cure and the deadline to pay to avoid foreclosure. The lender must give you at least 30 days to pay.
• An explanation as to what will happen if you don't cure the default.
• A statement that you may stop the foreclosure process even after the filing of the foreclosure complaint.
• A statement that you have the right to sell or transfer title to the property during the foreclosure process.
• A statement advising you of the importance of contacting an attorney and contact information for the county lawyer referral service and Legal Services.
• A list of all available resources to help you cure the default and contact information for the New Jersey Department of Banking and Insurance.
• The name and address of the lender and the telephone number of a representative of the lender whom you may contact if you disagree with the lender's assertion that a default has occurred or the correctness of the mortgage lender's calculation of the amount required to cure the default.
• Information about New Jersey's foreclosure mediation program, which was made permanent in 2019. (N.J. Stat. §§ 2A:50-56, 2A:50-76 (2025).)

The Lender Files the Foreclosure Complaint

If you can't cure the default and haven't been able to work something out with your mortgage lender within 30 days of receiving the Notice of Intent to Foreclose, the lender may then file a foreclosure complaint. The lender files the complaint with the Office of Foreclosure, which is a part of the Superior Court of New Jersey.

The Office of Foreclosure handles the foreclosure unless you file an answer to the complaint. In that situation, the foreclosure is sent to a judge in your county. The complaint must set forth all of the facts that would give the mortgage lender (called the "plaintiff" in the complaint) the legal right to foreclose.

The Lender Serves You With the Foreclosure Complaint

After filing the complaint, the lender must personally serve you with the summons and complaint. You'll be called the "defendant" in the complaint.

The lender may also send you a copy of the summons and complaint by regular and certified mail. If the lender can't personally serve you, it can request permission from the court to serve you by publication, meaning you will no longer receive notices directly. Instead, the lender will publish all notices in your local newspaper.

Foreclosure Mediation

When you get the summons and complaint, you will again receive information about New Jersey's foreclosure mediation program. If you want to participate in the mediation program, you generally must make your request within 60 days of the date you received the complaint. (N.J. Stat. § 2A:50-77 (2025).)

If you don't request mediation within that 60-day time period, you will not be permitted to participate absent "exceptional circumstances." The mediation program doesn't automatically stop the foreclosure process from continuing.

A law in 2019 (NJ A-664) made New Jersey's mediation program permanent.

Filing an Answer to the Foreclosure Complaint

You have 35 days from the date you are served with the summons and complaint in which to file an answer. An "answer" is the formal legal document that you prepare in response to the complaint. In your answer, you admit to the allegations in the complaint that are true and deny those you believe are false. You also set forth any defenses to the foreclosure and state why you believe the plaintiff doesn't have a valid case.

You must file your answer with the Office of Foreclosure, which then reviews it to determine if it is a contesting or non-contesting answer. The type of answer you file will determine how your case will proceed.

If your answer opposes the foreclosure and sets forth valid defenses to the complaint, the Office of Foreclosure will transfer your case to the superior court in the county where the property is located, and your case will be assigned to a judge. Once your case has been transferred, a trial date will be scheduled. At the trial, the lender will try to convince the court that it does have the legal right to foreclose. You, however, will try to convince the court that the mortgage lender doesn't have the right to foreclose on the property for the reasons you described in your answer.

If you admit to all of the lender's allegations, your case won't be transferred to a judge in your county.

Notice of Entry of Default and Entry of Final Judgment

In cases where no answer is filed or if an answer is determined to be non-contested, the mortgage lender can ask the court for entry of default. The lender can do so after 35 days have elapsed since you received service of the summons and complaint. If you don't respond to the request for entry of default, the lender can then ask the court to enter final judgment.

However, 14 days before filing a request for entry of final judgment, the mortgage lender must send you a notice offering a final chance to cure the default. If you can cure the default, you must respond via certified or registered mail, return receipt requested, with a good faith estimate within ten days of receiving the notice. You will then be given 45 days from the date of the letter to cure the default. (N.J. Stat. § 2A:50-58 (2025).)

If you can't cure the default, and the court grants final judgment to the mortgage lender, the court will issue a writ of execution ordering the sheriff to sell your house at a public auction. You will get a notice telling you when your home will be scheduled for sale.

Notice of the Foreclosure Sale

If the court determines the foreclosure is proper, the lender must mail a notice of the sale to every party who has appeared in the action and the property owner at least ten days before the sale. The sheriff (the party that conducts the sale) posts a notice of sale at the property and in the sheriff's office. The notice is also published in two newspapers. (New Jersey Court Rule 4:65-2, N.J. Stat. § 2A:50-64).

New Jersey law also requires notice of the sale to be sent to the property address and the primary address of the foreclosed-upon defendant. The exterior of the envelope must plainly state that it contains a notice for the sale of the foreclosed property. (N.J. Stat. § 2A:50-64 (2025).)

Sheriff's Sales in New Jersey: What Homeowners Need to Know

New Jersey law requires the sheriff to conduct the foreclosure sale within 150 days of the sheriff's receipt of a writ of execution. (N.J. Stat. § 2A:50-64 (2025).)

When your home is scheduled for a sheriff's sale, you can request a two-week delay of the sale, provided you pay a fee. The postponement is temporary only. If you want additional postponements of the sale, you must file a written request with the court. A court order with a new date for the sale is required, even if the mortgage lender agrees to the postponement. (N.J. Stat. § 2A:17-36 (2025).)

Also, the sheriff or other officer conducting a foreclosure sale may make up to five adjournments, two at the request of the lender, two at the request of the debtor, and one if both the lender and debtor agree to an adjournment. (N.J. Stat. § 2A:17-36 (2025).)

Upset Price Requirements and New Jersey Foreclosure Sales

A lender or servicer of residential property must provide an estimate of the upset price for the sale of the property to the sheriff at least four weeks before the foreclosure sale. The sheriff must provide notice of the upset price on the sheriff's website and on any other medium used to provide notice of the foreclosure sale at least before the sale. (N.J. Stat. § 2A:50-64 (2025).)

How the Community Wealth Preservation Program Impacts Foreclosure Sales

Under New Jersey law, certain parties, including foreclosed defendants, their next of kin, tenants, other potential owner-occupants, and nonprofit community development corporations ("preferred purchasers"), have the right of first and second refusal to purchase a property at a sheriff's sale for an "upset price." The "upset price" is the minimum amount that a foreclosed property can be sold for, as determined by the foreclosing plaintiff. (N.J. Stat. § 2A:50-64 (2025)). This means that preferred purchasers don't have to compete in the open bidding process with other interested parties, such as investors. If a preferred purchaser doesn't exercise their right to purchase the property, the sheriff will proceed with an auction.

Again, the upset price must be disclosed at least four weeks before the sheriff's sale and posted on the sheriff's office website and any other platform used to announce the sale. To find the upset price, you will need to check the county sheriff's website. (N.J. Stat. § 2A:50-64 (2025)).

The process for purchasing a property through this method can be complex. A 3.5% deposit, in the form of a cashier's check, money order, or wire transfer, is required before the opening bid at the foreclosure sale. The remaining balance must be paid within 90 business days. If you plan to finance the purchase, you must provide proof of preapproval from a financial institution. (N.J. Stat. § 2A:50-64 (2025)). If you need assistance, it is advisable to consult a foreclosure attorney.

Does New Jersey Have a Foreclosure Redemption Period?

After your property is sold, the New Jersey Court Rules give you ten days to file a motion objecting to the sale. (New Jersey Court Rule 4:65-5 (2025).) You may redeem the home during these ten days. You can also redeem up until the court issues an order confirming the sale if objections are filed under the rule. (See Hardyston Nat. Bank v. Tartamella, 56 N.J. 508 (1970)).

If the lender gets a deficiency judgment (see below), you get six months after the entry of the deficiency judgment to redeem. (N.J. Stat. § 2A:50-4 (2025).) But you lose this right to redeem if you file an answer to the deficiency judgment lawsuit to dispute the deficiency amount. (N.J. Stat. § 2A:50-5 (2025).)

Proceeds of the Sale and Deed Transfer

If you don't redeem, the proceeds from the sale will be paid to the mortgage lender for the amount owed. If the property sells for more than the amount owed on the mortgage and other liens, the difference (the surplus funds) will be paid to you.

Deficiency Judgments in New Jersey

If the house sells for less than what is owed on the mortgage, in New Jersey, the lender can sue you and get a judgment for the additional amount owed. (N.J. Stat. § 2A:50-2 (2025).) This judgment is called a "deficiency judgment."

To get a deficiency judgment after a New Jersey foreclosure, the lender must file a separate lawsuit within three months from the foreclosure sale date or, if confirmation of the sale is required, from the date of the confirmation of the sale. (N.J. Stat. §§ 2A:50-1 through 2A:50-2.1 (2025).)

If you think the home sold at the foreclosure sale for less than its fair market value, you may dispute the deficiency amount by answering the lender's suit and introducing evidence regarding the property's fair market value. (N.J. Stat. § 2A:50-3 (2025).) But you'll lose the right of redemption.

Deed Transfer

The deed to the property will be transferred to the new owner two weeks from the date of sale.

What Is the Statute of Limitations for Foreclosure in New Jersey?

In 2019, the statute of limitations for most residential mortgage foreclosure actions was reduced from 20 years to six years from the date the debtor defaulted. (See NJ A-5001, N.J. Stat. § 2A:50-56.1 (2025).)

Can I Reinstate My Mortgage to Save My Home From Foreclosure in New Jersey?

Some states, including New Jersey, give homeowners the ability to prevent a foreclosure from going forward by getting current on the mortgage in one large payment, called "reinstating" the mortgage or "curing the default." In a New Jersey residential foreclosure, homeowners get the legal right to reinstate at any time until a court enters a final judgment, but there's a good reason to act more quickly.

• What happens if you reinstate by the deadline given in the notice of intention to foreclose. If you reinstate by the deadline given in the notice the lender sends you, you get the right to cure subsequent defaults. So, if you fall behind in payments again, you still have the legal right to get current on the payments and stop another impending foreclosure.
• What happens if you reinstate after the deadline given in the notice of intention to foreclose. If you reinstate after the deadline specified in the notice has expired, you'll stop the foreclosure. However, the downside to waiting is that if you fall behind again during the next 18 months, you don't get the legal right to reinstate the mortgage another time. The foreclosing lender might voluntarily allow you to reinstate the mortgage if you get behind again. However, New Jersey law doesn't require the lender to let you do this during the 18-month time period. Instead, the lender can decide to proceed with a foreclosure even if you can afford to reinstate. (N.J. Stat. § 2A:50-57 (2025).)

Getting Additional Time to Reinstate Your New Jersey Mortgage

Again, the foreclosing lender must mail you a notice 14 days before it requests a final judgment of foreclosure from the court. If you respond to the notice via certified or registered mail (return receipt requested) within ten days, saying that you plan on curing the default, you get another 45 days in which to reinstate before the court will enter a judgment. (N.J. Stat. § 2A:50-58 (2025).)

How Much It Costs to Reinstate a Mortgage in New Jersey

To reinstate the mortgage, you'll have to pay the missed payments (including principal and interest), late charges, and, in some cases, court costs, and fees in cash, cashier's check, or certified check.

The notice of intention to foreclose will show the exact amount you need to pay in order to reinstate the mortgage before the foreclosure starts. If you want to reinstate after the deadline in the notice has passed, contact your mortgage servicer (the company you make your monthly payments to) or the attorney handling the foreclosure to find out the precise amount it will cost to reinstate your mortgage loan.

Other Options to Avoid Foreclosure in New Jersey

You might have other options for saving your home besides reinstating the mortgage. For example, you might be able to arrange a foreclosure alternative with the lender, such as a mortgage modification or repayment plan.

Get Help With a New Jersey Foreclosure

For more information about New Jersey foreclosures, visit the New Jersey Courts website.

If you're facing a foreclosure in New Jersey and want information about different ways to fight the foreclosure in court or avoid foreclosure with a loss mitigation option, like a loan modification, consider talking to a local foreclosure attorney.

A HUD-approved housing counselor is also an excellent resource for information about ways to avoid a foreclosure.