Understanding the Foreclosure Process in New Jersey

Your Understanding of the foreclosure process in New Jersey is an important part of navigating your options when your home is in foreclosure.

First let’s look at the basics…

What is a foreclosure?

A Foreclosure is the legal process that banks use to take back property, after the borrower stops making mortgage payments.

Foreclosure is not fun, but just know that it’s not the end of the world and there are options available to you.

With a little basic knowledge about foreclosures in New Jersey, and how they work… you will be able to navigate it well and come out with what best given the circumstances.

The Basic Stages of A Foreclosure

There’s a few stages that are important to any foreclosure process.

Foreclosure works differently in different states around the country.

The two ways different states use to foreclose upon a property are: judicial sale or power of sale.  New Jersey has a Judicial foreclosure process.

Connect with us simply by calling 609-389-9403 or through our contact page and we would be happy walk you through the specific foreclosure process here in Trenton.

There is also some more detailed information on the process in NJ.

Under Judicial Foreclosure:

  • Your mortgage lender must file suit in the court system.
  • You’ll get a letter from the court demanding payment.
  • Assuming the loan is valid, you’ll have 30 days to bring payment to court to avoid foreclosure (and sometimes that can be extended).
  • If you don’t pay during the payment period, a judgment will be entered and the lender can request the sale of your property – usually through an auction.
  • Once the property is sold, the sheriff serves an eviction notice and forces you to immediately vacate the property.

Anyone who has an interest in the property must be notified during a foreclosure.

For example, any contractors or banks with liens against a foreclosed property are entitled to collect from the proceedings of an auction.

What Happens After A Foreclosure Auction?

After a foreclosure is completed, the proceeds from the sale is used to pay the loan off.

Sometimes, if the sale of the property at auction isn’t enough, a deficiency judgment can be issued against the borrower for the difference between what’s owed and the sale amount.


Here’s a great resource that lists the New Jersey deficiency judgement laws.

Generally, it’s best to avoid a foreclosure auction. Instead, call up the bank and work with a reputable real estate firm, like us at Good Vibes Real Estate Solutions to help you negotiate discounts off the amount owed, and work out solutions to avoid having a foreclosure on your credit.

If you need to sell a property in Trenton, we can help you.

We are house buyers in Trenton New Jersey like yours from people who need to sell fast.

Give us a call anytime 609-389-9403 or
fill out the form on this website today! >>


Other Foreclosure Resources For Trenton New Jersey HomeOwners:

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