Homeowner resource
Facing foreclosure in New Jersey
If you’ve fallen behind on your mortgage, you usually have more options than the paperwork makes it feel like, but several of them depend on acting early. Here’s how the process works in New Jersey and what you can do at each stage.
How foreclosure works in New Jersey
New Jersey is a judicial foreclosure state: a lender has to go through the court. The New Jersey Courts’ foreclosure self-help guide describes the stages:
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Notice of Intention to Foreclose
Notice generally required at least 30 days before filing
Before filing, the lender sends written notice of the debt, how to cure it and the consequences. The notice says how long you have, generally at least 30 days, to pay or make other arrangements with the lender.
Applies to home mortgages covered by New Jersey’s Fair Foreclosure Act: generally a home the borrower or a close family member lives in. The notice has to be sent at least 30 and no more than 180 days before the lender files (N.J.S.A. 2A:50-56).
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Complaint and answer
Answer due 35 days after you’re served
If it isn’t resolved, the lender files a foreclosure complaint. To contest it, you have to file an answer within the time the summons gives you (the courts’ guide says 35 days), so don’t wait.
Counted from service of the summons and complaint (Court Rule 4:6-1). If the papers weren’t handed to you, the start date can differ; Legal Services or a lawyer can confirm yours.
The lis pendens (notice of pending action)
Once the complaint is filed, the lender typically records a “lis pendens,” a notice that a lawsuit involving the property is pending, with the county clerk or register of deeds where the house is. It puts the foreclosure on the public record, so it shows up in county property records and in any title search a buyer or lender runs, and anyone who later buys or takes a lien on the house is bound by the outcome of the case.
It doesn’t transfer ownership, and it doesn’t mean the house has been sold. It also isn’t the court papers: you may not get a separate copy, it doesn’t start a new deadline, and your 35 days to answer still run from when you were served with the summons and complaint.
Don’t ignore the paperwork
Free court foreclosure mediation is available to eligible homeowners: generally owner-occupants of a one- to four-family home that is their primary residence, who have been served with a foreclosure complaint and are not in bankruptcy. You have to ask for it, and there are deadlines.
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Judgment and sheriff sale
Two adjournments (stays) of the sale if you ask, up to 30 days each
After a final judgment, the court issues a writ of execution and the sheriff auctions the property. You may request up to two stays to delay the sale.
The lender can also ask for two, one more is possible if both sides agree, and a court can order others for cause (N.J.S.A. 2A:17-36). In some cases an extra stay for mediation is possible.
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After the sale
Generally 10 days after the sale to redeem
There is a short period after the sheriff sale to redeem the property, so talk to an attorney right away.
The 10 days is the period for objecting to the sale (Court Rule 4:65-5); if an objection is filed, the time can run longer. Redeeming generally means paying the full amount owed, so talk to a lawyer right away.
Sources: the New Jersey Courts’ foreclosure self-help guide; N.J.S.A. 2A:50-56 (notice); N.J.S.A. 2A:15-6, 2A:15-7 and 2A:15-9 (lis pendens); Court Rules 4:6-1 (answer) and 4:65-5 (objections after the sale); N.J.S.A. 2A:17-36 (adjournments). Checked November 2026.
Watch out for rescue scams
Be wary of anyone who asks for an upfront fee to “save” your house, or who asks you to sign over the deed before you understand the deal.
What you can do, roughly in order
Which of these fits depends on your income, how far behind you are, how much equity you have and whether you want to stay in the house.
Work it out with the lender
- Call your servicer early. Ask about loss-mitigation options such as a repayment plan, forbearance or a loan modification. Get every agreement in writing.
- Get free, qualified help. A HUD-approved housing counselor can help you understand your options, organize your finances and talk with your lender, for free or at low cost.
- Ask for court mediation. If you’re eligible and have been served, mediation brings you and the lender together with a neutral mediator to look for a workable outcome.
- Catch up or refinance. If your finances have recovered, reinstating the loan or refinancing can end the process and keep the house.
Sell the house
- List the house. If you have equity and some time, a market sale through an agent may bring a higher sale price. Listing takes time, so start early.
- Short sale. If you owe more than the house is worth, your lender may approve a sale for less than the balance. How short sales work.
- A direct offer. When time is short or the house needs work, a direct offer can be another way to sell and pay off the loan from the proceeds, usually for less than the open market might bring.
Talk to a bankruptcy attorney
- Bankruptcy. Filing can pause a foreclosure, and Chapter 13 can let some homeowners catch up over time. That’s a decision for a bankruptcy attorney. The real-estate side of bankruptcy.
When a direct offer is worth a look, and when it isn’t
Worth a look
A direct offer can make sense when there’s equity to protect, the calendar is tight and the house needs work that makes listing hard.
Usually not the first move
It usually isn’t the best first move if you can afford to catch up, may qualify for a modification, or have time to list a house that’s in good shape.
If Ryan thinks another path will leave you better off, he’ll say so.
Where to get qualified help
- Find a HUD-approved housing counselorFree or low-cost help from a counselor approved by the U.S. Department of Housing and Urban Development. By phone: 800-569-4287.
- Legal Services of New JerseyFree civil legal help for eligible New Jersey residents.
- Find a lawyer referral service in your countyCounty bar association referral services, listed by the New Jersey State Bar Association.
- Mortgage help from the CFPBThe Consumer Financial Protection Bureau’s guide to options when you’re struggling to pay, and to avoiding foreclosure-relief scams.
This guide is general information from the real-estate side. It isn’t legal, tax or financial advice, and laws and procedures change. The links above go to official or nonprofit sources; Ryan and RESP aren’t affiliated with them.
Related guides
- Short sales When you owe more than the house is worth.
- Selling with a mortgage How the payoff works, and what to check before you price the house.
- Bankruptcy and your house Questions to take to your attorney.
- Need to sell fast? What listing, selling yourself or a direct sale realistically take when time is short.
- How offers work What a direct offer considers, and when listing may be the better route.
Talk to Ryan
Not sure which path fits your situation?
Text or call Ryan and tell him what’s going on with the house. He’ll explain the options he sees, including the ones that don’t involve a direct sale.
Ready for a number? Request an offer