One of the best ways to buy property is by using New Jersey foreclosure listings. Foreclosure listings provide a great deal of property information that can help you decide upon a competitive sales price. It is important to determine the market value of foreclosure property as you can typically buy foreclosed properties for as little as 80 percent of the market value.

For best results, restrict your search of foreclosure properties in New Jersey to a particular geographical area. You then may narrow your search further according to other criteria, such as the type of property you are most interested in or square footage. There are primarily three types of foreclosure listings:

1. Bank-owned foreclosures in New Jersey; you may not be able to get these listings if the property is owned by a third party.
2. Foreclosure listings from online sources; these listings are normally updated dynamically.
3. Lists of bank foreclosures from a licensed Realtor; these lists are available to the general public and quickly become outdated.
   

Action Steps
The best contacts and resources to help you get it done

Locate a New Jersey foreclosures list in a specific area

Most sites with foreclosure listings offer free trials before charging for a memberships. The sites include a property search by location and may include photos, neighborhood and school system profiles.

I recommend: The Ocean County Sheriff's Department offers current foreclosure listings within the county. Use details such as city, price and home type on to find foreclosed property listings at NJ.com.

Use databases of foreclosure property listings in New Jersey to narrow search criteria

Once you've found a New Jersey foreclosure website, use the site's database of foreclosed properties to learn specific information about properties. Databases foreclosure homes in NJ typically provide details that allow you to narrow down your online database search using criteria such as property value, property type, property statistics and loan type.

I recommend: Use the listing of foreclosures in Burlington County at All Foreclosure Information to narrow down search criteria by auction, bank and pre-foreclosure properties. BergenJerseyForeclosures.com provides foreclosure properties in Bergen County with options for additional search criteria.

Make quick contact to purchase foreclosure properties in NJ

When you find a foreclosed property you would like to purchase, it is important to contact the homeowners as quickly as possible since they will likely be contacted many times during the course of the foreclosure process. Most online foreclosure databases provide contact information to learn more about the home and how it will be sold.

I recommend: ForeclosureListingsNewJersey.com provides full details on foreclosed property listings in New Jersey, including contact information, with a trial membership. Free Foreclosure Database provides contact information for foreclosure listings in New Jersey.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  You can work directly with the owner to buy a pre-foreclosure property. The advantage of this method over buying foreclosed properties in New Jersey is that the discount may be as much as 30 percent. However, it can be difficult to locate owners that have failed to make their mortgage payments.

Working the foreclosure market in New Jersey can be very advantageous to your business. If you are able to close on foreclosure properties in New Jersey, you can save on both the final value of the properties and the closing costs.

Trends have shown that there has been a steady increase in the number of New Jersey foreclosed property listings with final value savings at an average of 24%. Take advantage of the current low market value of properties and find foreclosed properties in New Jersey.

The 3 different processes of the foreclosure procedure are pre-foreclosure, foreclosure and bank owned. Ideally, you’ll wish to secure the property early on to get the best rate.

1. Purchase New Jersey foreclosures outright from the owners. Before the lender officially starts foreclosure proceedings upon the property, you can still find it cataloged in the New Jersey foreclosure listings.
2. Find a local auction and buy foreclosed properties in New Jersey through this process. Interested parties make bids on the foreclosed property with the highest bidder winning the title.
3. Work with a bank to purchase a foreclosed property. You can still get bank-owned foreclosures in New Jersey for a good price, but not as low as the other two processes.

Action Steps
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Access pre-foreclosure listings in New Jersey

Since the foreclosure process is lengthy, foreclosure properties in New Jersey may not go to auction for months. In the meantime, you can find these distressed New Jersey foreclosures and make your bid on them.

I recommend: Look to the New Jersey PreForeclosures site to locate current New Jersey foreclosed property listings that have not yet gone to auction. Use their archive tool as well to get an idea of the past closing prices of foreclosed properties in New Jersey.

Find auctions held in New Jersey

As a potential buyer, you'll want to stay on top of the most current New Jersey foreclosure auctions held statewide.

I recommend: Get directed to upcoming foreclosure auctions through sites that list local sheriff sales. Get the date of the auction as well as the address of the public sale. You can even use different site's mapping options to get directions to the auction. You should always check more than one site for New Jersey foreclosure listings to get the most current information.

Bid on New Jersey foreclosures via the web

By bidding online, you can access different New Jersey foreclosure auctions without leaving the comfort of your home or office.

I recommend: On Foreclosure.com, you can sign up and bid online for foreclosed homes in New Jersey. This is a useful tool if you are unable to physically attend a New Jersey auction.

Buy foreclosure properties in New Jersey owned by the bank

Bank-owned foreclosures in New Jersey are usually a safe bet, although you'll likely pay a higher price than through the auction process. Bank owned buildings will likely be more ready for sale than their auction counterparts.

I recommend: HudForeclosed.com provides all of the information that you need to make an offer to the bank for a foreclosed property, including location and listed price. Register for a trial membership and pay only a small fee to see all current New Jersey foreclosures. You can perform these same functions on RealtyStore.com.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  You may need to wait several months until you are able to secure a property listed as a pre-foreclosure in New Jersey. Lenders are required to extend a grace period to property owners before foreclosing on a property.
• •  You'll find that foreclosure property listings in New Jersey usually have an opening bid amount listed. This is the figure that the lender needs in order to break even on the property.

Making the most of New Jersey foreclosure listings allows you to buy a property well below market value. Foreclosure listings are used both by investors wishing to sell the property for a quick profit and business owners who want to use the property for their business.

A property appears on New Jersey foreclosures because the owner has missed some mortgage payments and is defaulting on the loan. The lender must file for foreclosure in order to collect on the remaining debt. This gives them the legal right to sell the property and it may then appear on a foreclosure listing. There are three points in the foreclosure process at which you may purchase a property:

1. The pre-foreclosure stage; the property will be foreclosed if the mortgage debt is not settled within a given amount of time.
2. The foreclosure auction; most foreclosed properties in New Jersey are sold at public auction because the lender only needs to recover the remaining debt instead of the property’s full value.
3. Real Estate Owned (REO) property; REO property is owned by the lender and may be purchased before or after the auction.
   

Action Steps
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Learn about the laws on foreclosure properties in NJ

Foreclosure laws vary by state and cover issues such as foreclosure notices, sales procedures and deficiency judgments. Most states allow for a judicial foreclosure, which requires filing a lawsuit to get a court order to foreclose. Generally the property will be auctioned to the highest bidder after it is declared a foreclosure by the court.

I recommend: Advantage Mitigation Services provides an overview of the foreclosure laws in New Jersey. ForeclosureDeals.com provides a summary of foreclosure requirements and also hosts related articles.

Get more information on foreclosure property listings in New Jersey

Foreclosure sites often offer current news on New Jersey foreclosed property listings. They may also offer other information such as a description of the foreclosure process or a FAQ on foreclosures.

I recommend: MostlyForeclosures can locate property listings by county or zip code and also offers press releases on foreclosure news. ForeclosuresJersey offers property listings by county and news articles on foreclosures.

Locate foreclosure homes in NJ

Many websites allow you to search for foreclosure properties by specific location. These sites may also offer additional services to members such as email alerts and photographs of foreclosure properties.

I recommend: PropertyShark.com offers property listings by county and also provides maps and comparisons of properties. Morristown, Chatham, Summit and Madison Real Estate provides a blog on foreclosure properties in New Jersey.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Determine the market value of bank-owned foreclosures in New Jersey. The best way to do this is to have it independently appraised by a professional. You will need to make arrangements with the current owner or trustee of the home for the appraiser to visit the property. You should then compare this appraisal to the value given by the party in charge of the sale.

A foreclosed property is a property that has been repossessed by the lender due to borrower default. Buying New Jersey foreclosures can yield investors a sizable profit. Before taking the plunge, you should familiarize yourself with New Jersey foreclosure listings key terms to help you identify various types of foreclosures.

Learning New Jersey foreclosure key terms can also help you gain a better understanding of the many stages of the foreclosure process. Some key terms you should know include short sale, pre-foreclosure, public auction, right of redemption, deficiency judgment and judicial/nonjudicial foreclosures.

Action Steps
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Short Sale

Borrowers facing foreclosure can try to save their properties by participating in a short sale. A short sale is a sale in which the property is sold to a third party and the lender accepts the sale amount as the debt paid in full.

I recommend: Law Office of Craig S. Gilgallon provides a wealth of information on short sales.

Pre-foreclosure

A pre-foreclosure is a property that has not yet been foreclosed. During this phase, the owner still has an opportunity to pay the amount owed on the property and stop the foreclosure proceedings. Under New Jersey foreclosure laws, the lender is required to notify borrowers of an impending foreclosure at least 30 days before starting the foreclosure proceedings.

I recommend: Read more about the New Jersey pre-foreclosure process at RealtyTrac.

Public auction

New Jersey foreclosed properties are sold at public auctions conducted by county sheriffs or other county officials. During the auction, the foreclosed property is purchased by the highest bidder. The sheriff is required to transfer ownership rights to the buyer within 10 days following the auction.

I recommend: Learn more about New Jersey auctions at Foreclosure News of New Jersey.

Right of redemption

Right of redemption is a statute that gives borrowers the right to reclaim their foreclosed property by making full payment of all amounts owed. Borrowers have only 10 days after the foreclosure sale to exercise this right.

I recommend: Read more about right of redemption at Foreclosure.com.

Deficiency judgment

Deficiency judgments can be ordered when a foreclosed property sells for less that the loan amount secured by a mortgage. When this occurs, the borrower is still liable for the difference between the amount of the loan and the actual sale price. New Jersey laws permit the filing of deficiency judgments within three months after the foreclosure sale.

I recommend: Learn more about deficiency judgments at Advantage Mitigation Services.

Judicial and nonjudicial foreclosures

New Jersey requires that lenders foreclose on properties using the judicial foreclosure process. A judicial foreclosure process requires lenders to file a lawsuit and obtain a court order to move forward in the foreclosure process. Judicial processes are typically required when no power of sale clause is included in the deed. This clause gives the lender authority to sale the property if borrowers fail to adhere to the terms of the mortgage contract. When the clause does exist, lenders can typically file foreclosures using nonjudicial proceedings.

I recommend: Find out more about judicial/nonjudicial proceedings at ForeclosedHomes.com.