|
|
Immediate Foreclosure Solutions |
|
HOME |
|
New Jersey The Process Foreclosures in New Jersey take place by filing a
lawsuit. New Jersey doesn’t use privately conducted mortgage foreclosure
sales. A lender begins by filing a complaint of foreclosure in the Superior
Court. Constructive notice can be given by recording a lis pendens with the
clerk or register of the county where the land is located. A lender may file
a foreclosure suit simply to collect the unpaid payments rather than the
entire unpaid principal balance. If so, the lender can get a judgment for the
missed payments and yet hold the mortgage and the note intact for the rest of
the loan balance. The property may be sold through a foreclosure sale with
the mortgage lien and note still in place so that the buyer at the
foreclosure sale holds title subject to the existing mortgage lien and note.
In this type of sale, however, the lender may not collect a deficiency
judgment against the borrower. Preliminary Notices In New Jersey once the lender wins a judgment to
foreclose on the real estate, whether in part, as just described, or in
whole, by a writ of execution, the sheriff or another officer will conduct
the sale. The foreclosure notice must be posted in the county office of the
county where the property is located, and on the property in foreclosure. The
notice must be advertised in two newspapers in the county, one of which must
be either the county seat or the largest municipality in the county. The
person seeking the foreclosure must notify the property owner and any other
parties to the foreclosure lawsuit at least ten days before the sale. The
newspaper ad must disclose any title defects, unless the court has ordered
the foreclosure sale completed free of any liens. The buyer can back out of
the purchase if the ad did not disclose the title defects, or if the sale was
not ordered to be free of liens. The buyer must begin by notifying the court
that a defect in title exists. Sale Procedures The sheriff may then proceed to sell the property
in the manner directed by the court. The sheriff must deliver the deed unless
an objection to the sale is made within ten days after the sale, or the
objection is made before the deed was delivered, if delivery is past ten days
from the sale. Unless there are valid objections, the court will confirm the
sale. Thereafter the sheriff must file a report of the sale with the court
within a reasonable time. Deficiency Judgments Deficiency judgments are permitted in New Jersey.
A lawsuit for a deficiency must be commenced within three months from the
date of the foreclosure sale, or confirmation of the sale if confirmation was
required. Although the deficiency suit is a separate lawsuit, it can only be
brought against a person who was joined to the foreclosure lawsuit and who is
personally responsible for the mortgage debt. Such a person must be served
with the process. On a note that is dated on or after May 1,1980, the debtor
may dispute the deficiency by introducing evidence of the fair market value
of the mortgaged premises at the time of the foreclosure sale. The deficiency
is limited to the difference between the fair market value of the premises
and the balance due on the loan. However, a borrower should object to the
foreclosure sale price prior to the confirmation of the sale. The failure to
do so may set the borrower up for a larger deficiency. However, some New
Jersey courts are refusing to confirm the foreclosure sale unless the lender
agrees, as part of the confirmation, not to sue the borrower for a deficiency
greater than the difference between the fair market value and the balance
owed on the loan. Redemption Redemption is possible during the ten days a
borrower has to object after a foreclosure sale. If the borrower objected to
the sale, then redemption is possible anytime until the court rules on the
objections, which may be longer than ten days. If the lender sues the borrower for deficiency,
the effect is to reopen the foreclosure sale, which would otherwise have been
final and proof against a right of redemption. A deficiency gives a borrower
the right to bring an action to redeem the property within six months after
the lender’s deficiency judgment is rendered. However, persons who answered
the deficiency suit, disputing its amount, and lost may not redeem. |
HOME HELP CONTACT US FAQs
©Immediate Foreclosure Solutions®