New Jersey Sheriff Sale Process
After a mortgage lender has obtained a final judgment through the foreclosure process, the home will be sold in a Sheriff’s sale. Despite this, the New Jersey Sheriff sale process takes time, so you will not have to move out of your home immediately after the mortgage lender obtains the final judgment and initiates the sale process.
While the final steps in the foreclosure process can be especially difficult, it is important to remember that you will have ample notice of the date and time when the sale will occur. A foreclosure attorney can provide guidance as to your options during this time period.
Notice of the Sale is Required in New Jersey
It is important to remember that notice of the sale must be provided to the homeowner as an integral part of the New Jersey Sheriff sale process. The notice must meet specific requirements in New Jersey, meaning that it must be published or posted:
- In two newspapers that are available in the county where the home is being sold, and the publications must occur (1) every week for a consecutive four weeks before the sale and (2) at least 21 days before the sale, with the last publication occurring no more than eight days before the sale
- At the actual Sheriff’s office for the county, at least three weeks before the sale
- On the home itself
All three notice requirements discussed above must be satisfied in order for the sale to proceed. Further, after notice has been received, the homeowner may request that the sale be postponed for two weeks. A small fee will apply, and the homeowner is permitted to request these two-week statutory adjournments on two separate occasions before the sale takes place.
What Happens at the Sheriff Sale?
Once the required notices and permitted adjournments have been made, the next step in the New Jersey Sheriff sale process is a voice auction where the mortgage lender’s attorney will typically start bidding on the home at $100. This attorney will continue the bidding process until a price is reached that exceeds the amount owed to the mortgage lender in order to ensure that the entire amount of the first mortgage and any fees are paid.
Once a winning bidder has been identified, they are required to put down 20 percent of the final bid price as a deposit. This generally concludes the sale but also begins a ten-day redemption period in which the homeowner may redeem the home by paying off the entire amount owed, in addition to any liens or fees that have accrued. Assuming no redemption occurs, approximately 30 days after this redemption period has expired, the Sheriff will prepare a deed to the home. After the winning bidder pays the balance due, they will receive this deed and become the legal owner of the home.
A New Jersey Attorney Can Explain the Sheriff Sale Process
An attorney can help you evaluate the options that you may have during and after the New Jersey Sheriff sale process. As a homeowner, you have both the right postpone the sale and the right to redeem the property. An experienced foreclosure attorney can help you take advantage of these valuable options in order to potentially save your home.