New Jersey Foreclosure Laws

Written by Manuel Martinez, RealtyTrac contributorPublished Jun 6, 2013

Last updated Aug 10, 2023

Photo by Tingey Injury Law Firm on Unsplash

Key Takeaways

New Jersey foreclosures go through the courts and take about nine months.
Lenders must mail a warning at least 30 days before starting foreclosure.
Borrowers have at least 35 days to respond after being notified of the lawsuit.
Borrowers have a 10-day redemption period after the sheriff's sale.

Foreclosure Process Overview

New Jersey foreclosures are administered through the court system. The foreclosure process takes about nine months.

Judicial	Non Judicial	Comment	Process Period	Publish Sale	Redemption Period	Sale/NTS
•		Judicial only	270 days	N/A	10 days	Sheriff

Pre-foreclosure Period

At least 30 days before starting the foreclosure process, the lender mails a letter to the borrower warning of the impending foreclosure. During this pre-foreclosure period, the borrower can prevent the foreclosure by paying off the amount in default.

The lender initiates the foreclosure through the courts and records a lis pendens (notice of pending lawsuit) with the county clerk. The lender can sue for either the default payments or the entire unpaid principal balance on the loan. The borrower is notified of the foreclosure action in person or by publication if necessary. After being notified, the borrower has at least 35 days to respond or the court will make a ruling. If the court rules against the borrower, a sale date will be scheduled.

Notice of Sale / Auction

Notice of sale must be posted on the property as well as in the county office where the property is located. In addition, the notice of sale must be published in two local newspapers. One of these publications must be in either the largest municipality in the county or the county seat.

Notice must be given to the property owner at least 10 days prior to the scheduled sale.

Foreclosure sales are conducted as public auctions, overseen by the sheriff or another officer of the county. The property is awarded to the highest bidder, and the sheriff must transfer ownership to the purchaser within 10 days following the sale. The court also confirms the sale. The borrower has redemption rights during the 10 days following the sale, when any objections are considered by the court.

Frequently Asked Questions

How long does foreclosure take in New Jersey?

About nine months, since all foreclosures are handled through the court system.

Can I stop a foreclosure in New Jersey before it starts?

Yes. During the pre-foreclosure period after the 30-day warning letter, paying the amount in default prevents the foreclosure.

Is there a redemption period in New Jersey?

Yes. The borrower has redemption rights during the 10 days following the sale.

Sources & References

Outside sources cited in this article.

Foreclosure Self-Help, New Jersey Courts
How does foreclosure work?, Consumer Financial Protection Bureau

About the author: Manuel Martinez

RealtyTrac contributor

Manuel Martinez is a contributor to RealtyTrac who writes about local housing markets, home buying and real estate investing. He has written for RealtyTrac since 2013, covering city and state market reports, home buying guides and tips, investment financing and strategies for buying and flipping homes.