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Loading ...New Jersey foreclosure homes are cheap properties sold through the process of auction after the lenders foreclose it through judicial intervention. Not only homes, commercial properties and condos are also foreclosed here. Judicial intervention is mandatory in New Jersey as it is a Lien theory state. Here, the lenders do not have any power of sale advantage. Hence, the lender has to appeal before the court of law to foreclose the properties when the borrower disobeys the mortgage or security agreement. Here, superior courts deal with all foreclosure pleas and processes. The basic aim of the foreclosure here is to recover the unpaid amount of the loan amount.
The foreclosure scenario in New Jersey is now witnessing a paradigm shift. There are several reasons behind this change. Recessionary wave prevailing at global economy has hampered the stability of job market. It has also blocked the availability of fresh loans. In this situation, homeowners are finding repayment of home equity loans regularly a Herculean task. As a result, lenders have no option except foreclosing the property and selling the distress home to recover their money. According to statistics there are 50,465 foreclosure properties in this state. It means one property in every 14,674 properties is foreclosed. The average price of these properties is around $230,582 that is much cheaper compared to market price of fresh properties.
There are several differences between foreclosure laws of New Jersey and other US states. In New Jersey, there are two laws which give an upper hand to the owner of the distress home. They are deficiency judgment and right of redemption. Under deficiency judgment plea, the borrower can appeal for sale of the property at market price. There are several cases while a property is revalued under this plea. This is a win-win situation for both lender and borrower. Another foreclosure requirement to be taken care of is right of redemption. This empowers the borrower to reclaim the property after auction with payment of unpaid debt and foreclosure cost. The borrower can file it within 10 days of auction.
Hence the sale of New Jersey foreclosed homes might take as long as 250 days. Due to the above two clauses, uncontested foreclosures in New Jersey is lesser compared to other states. Hence, before buying these properties evaluate the pros and cons to have a better deal.
