How Foreclosure Works in NJ — and How to Avoid It

Foreclosure can feel overwhelming and scary, but understanding the process can help you take back control. If you're behind on mortgage payments in New Jersey, you have more options than you might think — and acting quickly is key.

What Is Foreclosure?

Foreclosure is the legal process where your lender takes ownership of your home after you default on your mortgage. In NJ, this process typically takes 9–12 months but can move faster if no action is taken.

The process usually goes like this:

1. Missed Payments: Lenders typically start the process after 3+ missed payments.

2. Notice of Intent to Foreclose: You’ll receive this notice before any legal action is filed.

3. Foreclosure Complaint: If no payment arrangement is made, the lender files a complaint with the court.

4. Sheriff’s Sale: Once judgment is entered, the home is scheduled for auction.

How to Stop Foreclosure in NJ

There are several ways to prevent foreclosure:

• Loan Modification: Renegotiate the terms of your loan to make payments more manageable.

• Short Sale: Sell the property for less than what’s owed with lender approval.

• Deed in Lieu: Voluntarily transfer ownership to the lender to avoid foreclosure.

• Sell to a Cash Buyer: If you have equity or even if you’re underwater, companies like NJ Home Relief can make a fair cash offer and close before the sheriff’s sale.

Why Work With NJ Home Relief?

We specialize in helping homeowners avoid foreclosure. Our team understands the NJ legal process and can work quickly to help you settle debt and move forward. You’re not alone — and you have options.