How foreclosure works in New Jersey

The notices you will receive in New Jersey, in order

1. Notice of Intention to Foreclose

   Mailed by the lender by registered or certified mail at least 30 days, and no more than 180 days, before it files suit

   This notice must list the amount needed to cure the default, the date to pay it, your right to cure, where to get legal help, and the free mediation and housing counseling programs. Call the lender contact named in the notice if you think the amount is wrong, and call a housing counselor right away.

   N.J.S.A. 2A:50-56

2. Summons and Complaint

   Served after the lender files with the Office of Foreclosure, which under federal rules is generally after you are more than 120 days behind

   This starts the court case. You have 35 days to file an answer. The complaint must say the lender followed the Notice of Intention rules, so compare the dates and amounts with the notice you got.

   N.J.S.A. 2A:50-56(f); R. 4:6-1

3. Notice of Foreclosure Mediation Availability

   Delivered with or after the complaint, in English and Spanish

   This tells you that you can ask for free court mediation. You can request it up to 60 days after you are served, working with a free housing counselor who must sign your certification.

   N.J.S.A. 2A:50-76, 2A:50-77

4. 14-day notice before final judgment

   Mailed by the lender at least 14 days before it asks for final judgment in an uncontested case

   This is the last warning that your right to cure ends when judgment is entered. If you mail back, within 10 days by certified or registered mail, a good-faith statement that you can likely cure within 45 days, the lender must wait at least 46 days.

   N.J.S.A. 2A:50-58(a)

5. Final Judgment and Writ of Execution

   Entered by the Office of Foreclosure (uncontested) or a General Equity judge (contested)

   The final judgment sets the amount owed. The court then issues a writ of execution telling the county sheriff to sell the home, and the sheriff must hold the sale within 150 days of receiving it.

   N.J.S.A. 2A:50-64(a)(3)

6. Notice of Sheriff's Sale and upset price

   Mailed to you and posted on the sheriff's website, with the upset price posted at least 4 weeks before the sale

   The envelope must say on the outside that it is a notice of sale of the property. The upset price is the lowest amount the home can sell for, and it generally cannot rise more than 3 percent by the sale date.

   N.J.S.A. 2A:50-64(a)(4)-(5)

7. Sheriff's Deed and Writ of Possession

   After the 10-day objection period; the sheriff delivers the deed within 2 weeks of the sale if the buyer has paid

   The sheriff's deed transfers ownership to the buyer. If you are still in the home, the buyer can ask the court for a writ of possession, which the sheriff's office serves and enforces.

   N.J.S.A. 2A:50-64(c); R. 4:65-5

The legal steps in New Jersey

1. Missed payments and the Notice of Intention to Foreclose

   After the federal 120-day wait, and at least 30 days (but not more than 180 days) before filing, the lender must send you a Notice of Intention to Foreclose by registered or certified mail. It must state the amount needed to cure, the date to pay it, your right to cure, and that you can use the court's free Foreclosure Mediation Program and free housing counseling.

   12 C.F.R. § 1024.41(f); N.J.S.A. 2A:50-56

2. The lender files a complaint

   The lender files a foreclosure complaint with the Office of Foreclosure and has you served with a summons and complaint. You should receive a written notice that you can ask for mediation, in English and Spanish. The complaint must state that the lender complied with the Notice of Intention rules.

   N.J.S.A. 2A:50-56(f), 2A:50-76

3. Answer within 35 days and ask for mediation within 60 days

   You have 35 days after service to file an answer. If you answer, the case goes to a judge in your county; if you do not, the Office of Foreclosure handles it as uncontested. You can ask for free court mediation up to 60 days after service, with the help of a free housing counselor; after that you need a judge's order.

   R. 4:6-1; N.J.S.A. 2A:50-77

4. 14-day notice and final judgment

   In an uncontested case, the lender must mail you a notice at least 14 days before it asks for final judgment. If you send back, within 10 days, a good-faith statement that you can likely cure within 45 days, the lender must wait at least 46 days. Your right to cure by catching up ends when final judgment is entered.

   N.J.S.A. 2A:50-57(a), 2A:50-58

5. Writ of execution and sheriff's sale

   After judgment the court issues a writ of execution and the sheriff must hold the sale within 150 days of receiving it. The lender must post the upset price at least 4 weeks before the sale and mail notice of the sale to you. You can get up to 2 adjournments from the sheriff, each up to 30 days, without going to court.

   N.J.S.A. 2A:50-64, 2A:17-36

6. 10 days after the sale

   The sale is not final right away. A motion objecting to the sale must be served within 10 days, and the New Jersey courts' self-help page says you have 10 days after the sale to redeem. Without an objection, the sale is confirmed and the sheriff delivers the deed to the buyer.

   R. 4:65-5

7. Writ of possession and moving out

   Once the buyer has the sheriff's deed, it can ask the court for a writ of possession, which the sheriff's office serves and enforces. Plan your move before this point, and ask whether the sale left surplus money for you.

Common questions in New Jersey