The foreclosure process starts when homeowners fall behind on their payments. In New Jersey, lenders go to court in what is known as a judicial foreclosure proceeding to file a complaint against the homeowner. The foreclosure cannot take place until the court issues a final judgment. The property is then sold by a court-appointed county official, usually the county sheriff’s office, at a public foreclosure sale.

Depending on the court schedule, it usually takes eight months or longer to invoke an uncontested foreclosure. This process can be delayed even longer if the homeowner contests the action, seeks delays or files for bankruptcy. This is often why many foreclosure sales listed on Auction.com get delayed or canceled, but by saving a property, we will send you updates as the auction date approaches so you will be in the know.

After a complaint is filed in court and public notice is given, the foreclosure sale can be scheduled, which is when Auction.com lists many properties. But the sale can be delayed or canceled if the homeowners pay off their mortgage, reach an agreement with the lender, contest the action or file bankruptcy. Auction.com can notify you if a property sale is postponed or canceled. To receive updates, just save the property and we’ll send you an email alert if the property status changes. You can also download the Auction.com app and track the status of a property yourself.

If the complaint is uncontested, the property will go to auction. In New Jersey, the court appoints a county official, usually the sheriff, to conduct the auction. If the property goes to auction, a credit bid is set to pay off the mortgage and any liens and fees attached to the property. The buyer must bid higher than the credit bid to win. If no one bids above the credit bid, the property goes back to the lender and become a bank-owned (REO) property for sale.

The credit bid is the minimum amount bidders must exceed to win the property. Also known as the “Upset Bid,” lenders can bid up to that amount at a foreclosure sale. If bidding at the sale doesn't reach the credit bid, the property is not sold and the lender takes ownership. Auction.com sometimes reveals the credit bid on the property details page, and if that’s the case, you will know the bid to beat ahead of time.

Yes, deficiency judgments are allowed in New Jersey. A lender can file a deficiency judgment against the homeowner if the property sells for less than the amount owed on it. For example, if a borrower defaults on a home loan with a balance of $250,000 and the home sells for $240,000 at the foreclosure auction, the lender can seek a deficiency judgment against the borrower for $10,000.

New Jersey, however, has a “Fair Market Credit” rule, which is a safeguard against low bids. This means the defaulting borrower receives credit for the fair market value of the property regardless of what it sells for at the foreclosure auction. But the borrower must raise this defense during the deficiency proceeding and it must be done within three months of the foreclosure sale.

Auction.com is involved in the sale because it lists many of the properties that are sold at the New Jersey auctions. As the nation’s leading online real estate marketplace, we market tens of thousands of properties every day and a benefit we offer buyers is that we provide important research documents online directly on our website. We typically provide photos, property reports and title information, making your research process much easier.

Foreclosure sales in New Jersey are held at the county courthouse in the county where the property is located. Check the property details page or the county information section on this page to get the address and time of the auction. Be sure to save your favorite properties so you can be notified if they are postponed, canceled or cleared for sale.

No. All New Jersey foreclosure auctions are held at the county courthouse. You must attend in person to bid on a property.

No, all of the information that we have is posted on the property details page. But we do update the page continuously, as we receive more information, so we suggest that you save the property so we can notify you of any changes. You can also download the Auction.com app and keep track of properties on your phone. Don’t forget you can do your own research on comparable sales and run a title search to see if there are liens on the property.

No, you will not be able to gain access to the home. Foreclosure properties are still owned by the homeowner until they are sold at auction and ownership is transferred. Please do not trespass or disturb the occupants. You will have to estimate the renovation costs from a distance. You can drive by and take photos of the exterior and surrounding neighborhood.

No, conventional financing is not accepted on foreclosure properties because mortgage lenders require an appraisal. Foreclosures are still owned by the homeowner so interior access is not available and without access, an appraisal cannot be done. These properties are sold for cash, although counties now require a cashier’s check for safety reasons. If you win, you will be required to put 20% down at the auction and pay the remainder within 30 days.

You may be able to use another source of funding such as a hard-money loan or personal line of credit. Check with your financial advisor to see if either one of these options are feasible.

You should determine your budget and buy properties that fit within that budget. Bring enough funds in cashier’s checks to pay the 20% deposit of the total amount that you plan to spend. You should bring several cashier’s checks that are $50 or $100 apart so you don’t lose a property over a small amount of money. If you overpay, the remainder will be applied to the balance owed on the property. Also bring two forms of ID, including a government-issued ID.

Foreclosure sales can be postponed or canceled if the homeowner makes payment arrangements, modifies the mortgage, files for bankruptcy or reaches another type of arrangement with the lender. The best way to prevent an unnecessary trip to the courthouse is to save properties that you plan to buy. Once you save a property, you can be notified if it’s postponed, canceled or cleared for sale. You can also download the Auction.com app and track properties with our Foreclosure Interact feature. That feature shows which properties have been canceled, postponed or cleared for sale.

If you win the auction, you will have to pay a 20% deposit immediately following the sale. You will then have 30 days to pay the remainder. However, you may want to pay it off sooner, as many counties begin charging interest after 10 days. Check with the county for details on when and how to pay for the property. After you pay and the legal requirements are met, the county will record the deed and if the property is vacant, you can take possession of it.

In most cases, a buyer’s premium is not added to the winning bid amount on a foreclosure sale. Check the property details page on the property you would like to buy. It will tell you definitively whether there’s a buyer’s premium on that property.

It depends. Foreclosures are not sold with clear titles. When you find a property on Auction.com, carefully review the title information on the property details page. That will give you a clue as to whether there are liens against the property. If you’re serious about bidding, you should run a title search with an independent title company. If the property has a lien against it, you will have to pay the lien before you receive a clear title. You may want to consult a real estate attorney, especially if you are new to the foreclosure process.

Yes, you will receive a deed after the legal requirements are met but the deed may not have a clear title. In order to receive a clear title, you will have to pay off any liens and encumbrances. Check with the county for specific details.

Yes, New Jersey has a 10-day redemption period. That means the homeowner has 10 days to reclaim the property by paying off the home loan and any associated costs. As a buyer, you cannot evict or collect rents during this period. Please consult the county and/or a real estate attorney for specific details regarding redemption periods.