The foreclosure process in New Jersey typically follows a judicial process, which means it involves court proceedings. It can be summarized in the following steps. First, the lender files a foreclosure complaint with the court and sends a Notice of Intent to Foreclose to the homeowner, giving them an opportunity to resolve the delinquency. The homeowner has 35 days to respond to the complaint, either by contesting it or reaching a resolution with the lender. If the homeowner fails to respond or contest, a judgment of foreclosure may be entered.
If the homeowner contests the foreclosure, the case proceeds to court for litigation. During this stage, both parties present their arguments and evidence, and the court makes a decision. If the court rules in favor of the lender, a judgment of foreclosure is obtained. Following this, the lender schedules a Sheriff’s Sale, which is a public auction where the property is sold to the highest bidder. If the property is not sold at the Sheriff’s Sale, it becomes Real Estate Owned (REO) by the lender.
Throughout the foreclosure process, it is important for homeowners to seek legal advice, explore alternatives such as loan modification or repayment plans, and communicate with their lender to find a resolution. Understanding the foreclosure laws and regulations in New Jersey can help homeowners navigate the process more effectively and make informed decisions to protect their interests.