Steps to Foreclosure in New Jersey
When you fail to make your mortgage payments, you fall into default on your loan. Traditionally, lenders initiated the foreclosure process after three or more missed payments. While this used to be the norm, recent changes have come into effect. In most cases, federal law prohibits lenders from filing the initial foreclosure complaint until you are more than 120 days late. However, keep in mind that some lenders may initiate foreclosure after just one missed payment.
2.) Notice of Intention to Foreclose
Before filing a foreclosure complaint, the lender must send you a Notice of Intention to Foreclose. This notice must be sent to you via certified or registered mail, providing a 30-day window before the complaint is filed. This grace period allows you time to rectify the default. The notice will outline the amount owed, specify the defaulted aspects, highlight your rights to sell the property, and provide any other relevant information.
3.) Foreclosure Compliant
If you haven’t resolved the default within the 30-day period, your lender will file a Foreclosure Complaint and serve you with the necessary documents. After being served, you have 35 days to either accept or contest the complaint.
4.) Notice of Entry of Default and Entry of Final Judgment
If you fail to respond to the complaint, the lender must send you a notice offering a final opportunity to rectify the default at least 14 days before the Entry of Final Judgment is made. If you are unable to resolve the default, the court will issue a writ of execution.
5.) Sheriff’s Sale
Upon receiving the writ of execution, the sheriff will schedule a sale of the property within 150 days. You will be notified about the scheduled sale date. After the property is sold, you have a 10-day window to reclaim the property by either selling or refinancing it.