Redemption and Deficiency Judgments in New Jersey
Whether you can buy back your home after a foreclosure sale in New Jersey, and whether the lender can sue for what's still owed.
Short answer: According to the New Jersey Courts, after the sheriff's sale the borrower has 10 days to redeem the property (pay off the debt). New Jersey Courts, Foreclosure Self-Help
| Redemption after the sale | According to the New Jersey Courts, after the sheriff's sale the borrower has 10 days to redeem the property (pay off the debt). If the borrower does not redeem within that time, the sale proceeds are used to pay what is owed on the mortgage, and any money left over goes to the borrower. |
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| Deficiency judgments | Yes, with limits. The New Jersey Courts state that if the sale proceeds are less than what is owed, the lender can sue the borrower for the remaining amount. The Appellate Division describes New Jersey's deficiency statutes (N.J.S.A. 2A:50-2 to 2A:50-10 and 2A:50-22 to 2A:50-28) as generally requiring the lender to foreclose first on a residential mortgage and guaranteeing the debtor a credit for the property's fair market value (N.J.S.A. 2A:50-3), with some exceptions (N.J.S.A. 2A:50-2.3). Opinion describing the deficiency statutes: https://www.njcourts.gov/system/files/court-opinions/2024/a0896-22.pdf |
More New Jersey foreclosure & homeowner law
- How Foreclosure Works in New Jersey
- HOA Liens and Foreclosure in New Jersey
- Getting Your Home Back After a Tax Sale in New Jersey
- All New Jersey foreclosure & homeowner law rules
FAQ
Is there a right of redemption after foreclosure in New Jersey?
According to the New Jersey Courts, after the sheriff's sale the borrower has 10 days to redeem the property (pay off the debt). If the borrower does not redeem within that time, the sale proceeds are used to pay what is owed on the mortgage, and any money left over goes to the borrower.
Can the lender come after you for the rest of the loan after foreclosure in New Jersey?
Yes, with limits. The New Jersey Courts state that if the sale proceeds are less than what is owed, the lender can sue the borrower for the remaining amount. The Appellate Division describes New Jersey's deficiency statutes (N.J.S.A. 2A:50-2 to 2A:50-10 and 2A:50-22 to 2A:50-28) as generally requiring the lender to foreclose first on a residential mortgage and guaranteeing the debtor a credit for the property's fair market value (N.J.S.A. 2A:50-3), with some exceptions (N.J.S.A. 2A:50-2.3).
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.