New Jersey Foreclosure Listings Key Terms
Become an informed investor by learning New Jersey foreclosure listings key termsA 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.
Pre-foreclosureA 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.
Public auctionNew 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.
Right of redemptionRight 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.
Deficiency judgmentDeficiency 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.
Judicial and nonjudicial foreclosuresNew 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.
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