How Does a Sheriff Sale Work in NJ?

Once the mortgage lender (Bank of America, Wells Fargo, etc.) has obtained a final judgment in the foreclosure, they may schedule a Sheriff Sale.

The Sheriff must publish notice of the sale for four (4) consecutive weeks in a local newspaper. Many county sheriff’s offices also have websites that list the sales and dates, but the best way to be sure is to call the county sheriff and ask about your sale. It is recommended to rely upon the sheriff to find out the date of the sale, because the lender and their attorneys will not always send prompt notices.

Homeowners have the right to two (2) adjournments of the Sheriff Sale. Each adjournment is for up to 30 days.

To stop the sale after the adjournments are used, a homeowner can file a motion with the judge to ask to stay the sale.

The right to file for Bankruptcy is provided by federal law. In most circumstances, upon the filing of a Bankruptcy Petition, you will be entitled to the “Automatic Stay,” which is an automatic injunction that halts the Sheriff Sale and other actions by creditors. In order to fully understand your options concerning Bankruptcy, you should seek a consultation with an experienced bankruptcy attorney to determine whether it is an option for you, and what you need to do to be prepared to stop a Sheriff Sale.

In many instances, if a complete loan modification application is submitted at least 38 days prior to the Sheriff sale, the lender must adjourn the sale and review the application. They should also provide the right to appeal any decision prior to conducting the sale. It is possible to find out if you will qualify for a modification, before you apply.

The Court has a free Foreclosure Mediation Program to help homeowners get modification. However, it is only for primary residences and there is a requirement that an application be submitted within 60 days of being served with the foreclosure complaint. To stop the sale and be admitted to the program, a motion must be filed with the Court and the homeowner should be prepared to explain why application was not made sooner and why they think the mediation would be successful.

If you want to try to fight the foreclosure, you have the right to file a motion with the Court and ask that the judgment be set aside and that you be permitted to file an Answer and defend the foreclosure. However, the NJ Court Rules provide that these motions should be filed within one (1) year of the Final Judgment.

Once the Sheriff sale is completed, the Plaintiff must obtain a Writ of Possession from the court, which instructs the Sheriff to remove any occupants from the property. The defendant will be notified by the Sheriff of the date on which they must leave the property.

Although every case is different, NJ’s Sheriff’s Sale timeline generally consists of the following steps:

1. Lender Obtains a Final Judgment
2. Lender Can Set Sheriff Sale
3. You Have The Right to Adjourn the Sale Twice
4. Loan Mod Review Adjourn
5. File Motion in Court to Adjourn the Sale
6. You May File For Bankruptcy
7. Sheriff Sales Takes Place
8. 10 Day Right of Redemption
9. Court May Set Aside Sale
10. Sheriff Delivers Deed to Owner
11. New Owner Applies for Writ of Possession
12. Sheriff Posts Notice Date of Eviction
13. File Motion in Court to Stay the Eviction
14. You May File For Bankruptcy
15. Vacate Premises by Date of Eviction

For further details and information, please refer to our comprehensive NJ Sheriff Sale Timeline.