How Does The Foreclosure Process Work?
Foreclosure is a process that is initiated by the mortgage lender to recover their money when a borrower defaults in the repayment of their mortgages. In New Jersey, there are a number of procedures that have to be followed by the mortgage lender before they can foreclose on your property. This process, also known as the judicial foreclosure in this State means that the mortgage lender must go to court for the process to begin. This process is, therefore, applicable in Bayonne and other municipalities of Hudson County.
When one does not make mortgage payments, they will be considered in default and this means that the lender can initiate the foreclosure process. Normally, the lender will start this process if you haven’t paid your mortgage for three months or more. Here are the procedures that a mortgage lender must follow before they can file for foreclosure:
Notice of foreclosure intention
The mortgage lender is by law required to notify the homeowner of their intention to file for the foreclosure proceedings. They will send the defaulting borrower a Notice of Intention to foreclose their property. This is done 30 days before the complaint is filed. The purpose of this notice is to give you some more 30 days for you to resume the repayment process.
The Foreclosure Complaint is filed by the Lender
You are supposed to have cured the default on your mortgage within the 30 days of the Notice of Intent. If you are unable to come into any kind of agreement with your mortgage lender, the mortgage lender will file a complaint of foreclosure. This will be done at the Office of Foreclosure in New Jersey. If you happen to file a complaint, the foreclosure will be heard by a judge in a residential county such as Bergen, Hudson, and the others.
Foreclosure Complaint served to you by the lender
The lender is required to personally serve you with the summons once they have filed the complaint. You will henceforth be the defendant in the ensuing complaint. The lender may also serve you the summons through registered mail or by permission of the court, through publication.
Filing an answer to the complaint of foreclosure
After you receive the complaint from the lender, you are given 35 days within which you can file an answer. This is simply a document that you will legally prepare as a response to the foreclosure complaint. This is also done in the Office of Foreclosure in New Jersey.
The other procedures that follow are that the notice of entry of default as well as final judgment entry is made. The sheriff’s sale will be the next step. After the property is sold, you have 10 days to redeem it. If you don’t, the proceeds of the sale together with the deed are transferred to the mortgage lender.