How Foreclosure Works in New Jersey

Judicial. The New Jersey Courts state that New Jersey is a judicial foreclosure state, so foreclosure actions must go through the court. The Office of Foreclosure (part of the Superior Court Clerk's Office) handles uncontested cases, and Superior Court General Equity judges handle contested ones. After final judgment, the court issues a writ of execution directing the county sheriff to sell the property at public auction.

Before a residential mortgage lender can accelerate the loan and start a foreclosure, it must send the borrower a written Notice of Intention to Foreclose by registered or certified mail, return receipt requested, to the borrower's last known address and the property address. It must be sent at least 30 days, but not more than 180 days, before the lender acts; if more than 180 days pass without a filing, a new notice is required. The notice must state the default, the amount needed to cure it, a cure date at least 30 days after the notice, the borrower's continuing right to cure after a suit is filed, where to find legal help and financial-assistance programs, and the option to use the court's Foreclosure Mediation Program. The notice is not required if the borrower voluntarily surrendered the property. After filing, the lender must serve the foreclosure complaint and summons, which again include mediation information.

The statute requires the Notice of Intention at least 30 days (and no more than 180 days) before a foreclosure is filed, with a cure date at least 30 days after the notice. The New Jersey Courts describe these further steps: the homeowner has 35 days after service to answer the complaint; before seeking entry of default in an uncontested case, the lender must give a final notice 14 days in advance; after final judgment, the sheriff has 150 days from the writ of execution to hold the sale, and the borrower and lender may each request two adjournments (stays) of the sale, with more possible in some cases.

Yes. Under the Fair Foreclosure Act, a residential borrower may cure the default and reinstate the mortgage at any time up to the entry of final judgment, as the Appellate Division has described the statute. The Notice of Intention must tell the borrower the amount and the date to cure before a suit is filed, and that the right to cure continues after a suit is filed, although the borrower then also owes the lender's court costs and attorney fees up to the limits in the court rules.