Mortgage Forum

Mike

Judicial Foreclosure Available: *Yes * -
Non-Judicial Foreclosure Available: *No * -
Primary Security Instrument: *Mortgage * -
Timeline: *Typically 90 days* -
Right of Redemption: *Yes* -
Deficiency Judgments Allowed: *Yes *

In New Jersey, lenders may foreclose on a mortgage in default by using the judicial foreclosure process. *Judicial Foreclosure* Generally, in judicial foreclosure, a court decrees the amount of the borrowers debt and gives him or her a short time to pay.

If the borrower fails to pay within that time, the clerk of the court then advertises the property for sale. Once the process begins, a foreclosure notice must be: 1) posted in the county office of the county where the property is located; 2) posted on the property in foreclosure; and 3) published in two (2) newspapers in the county. The lender must also notify the borrower at least ten (10) days prior to the foreclosure sale.

It is possible for the lender to obtain a deficiency judgment and borrowers have a right to redemption and/or objection within ten (10) days after the sale. More information on New Jersey foreclosure laws (http://www.njleg.state.nj.us/). source http://www.foreclosurelaw.org/New_Je...losure_Law.htm

*New Jersey Foreclosure is Judicial.* *New Jersey Foreclosure Fair Act Letters:* The *New Jersey Foreclosure*

Act states that mortgage lenders must send the statutorily required notice letters prior to foreclosure referral. A title search must be ordered and received prior to filing a complaint. A title search is generally received within ten to twenty working days of our receipt of the file. *Complaint Filed:* The sheriff has 40 days in which to attempt to serve complaint on all defendants including all lien holders of record. *Complaint Served:* If service is unsuccessful, service may be made by alternative means after due and diligent inquiry. Service is the most difficult and time-consuming aspect of *New Jersey foreclosure* practice. Once served, defendants have 35 days to file an answer to the complaint. If the USA or the State of New Jersey are defendants, those parties have 60 days to answer the complaint. *10/45 Day Default:*

After service is completed on all defendants on default has been entered against them, the *New Jersey Foreclosure* Act requires Notice of Intent to Enter Foreclosure Judgment be sent to defendant/mortgagor, providing at final opportunity to cure the default. If defendant/mortgagor does not respond to the letter, the plaintiff must wait 45 days before entering judgment. *Judgment Entered/Writ Of Execution Issued/New Jersey Foreclosure Sale Scheduled:*

If no response to Complaint is filed by defendants, judgment may be entered for mortgage foreclosure and sale of the property. Simultaneously, a Writ of Execution is issued and is sent to the Sheriff to schedule a Sale. The Sheriff is required to schedule a Sale within 6 months of receipt of the Writ. *Foreclosure Sale Date:* Sales may be postponed twice by the lender and twice by the defendants. Any other postponements require a Court Order.

Bidding instructions are required for all loans. Payment of all settlement charges must be made to the Sheriff within thirty days of the *New Jersey Foreclosure* Sale or it may be declared null and void. Title and eviction information must be provided immediately after the Sale in order to calculate settlement charges and to provide the Sheriff with the appropriate Assignment of Bid. *Ejectment Procedures For New Jersey Foreclosure; Judgment Entered and Writ of Possession Issued:*

At the conclusion of the Sheriff's Sale, judgment may be entered for possession. Simultaneously, a Writ of Possession is issued and the Sheriff has thirty days to serve the Writ of Possession on defendant. *Ejectment Date: * After the Sheriff serves the Writ of Possession, the occupants are given twenty days to move. On the twenty-first day after service of the Writ of Possession, if the occupants have not vacated the premises, the attorney telephones the Sheriff's Office to schedule the eviction.

The Sheriff will then assign a date for the eviction, which is usually 30 to 90 days from the date the judgment is entered. The client must provide for a moving company and locksmith at the time set by the Sheriff for the lockout. *Landlord/Tenant Act:* If the property is occupied by a tenant, a separate complaint must be filed in Landlord/Tenant Court. This process may take 60-180 days. source http://www.foreclosureuniversity.com...new_jersey.php