Category Archives: New Jersey Sheriff’s Sale FAQ

How does the sheriff sale process work in New Jersey?

New Jersey’s sheriff sales are administered by the sheriff’s department associated with the county in which the relevant property is located. Thus, in New Jersey the sheriff sale process is conducted in accordance with the local rules of the county in which such a sale takes place.

Notwithstanding the local distinctions between the sheriff sale process in New Jersey from county to county, in the context of all New Jersey sheriff sales the relevant properties are sold subject to the first mortgage on the property, if applicable, which typically takes the form of the first lien on the property. Furthermore, such a sale in New Jersey is subject to any local, state or federal liens. Given the possible existence of these liens or other liens, a title search is typically run prior to bidding to determine the manner and extent to which the property is encumbered by liens. It is imperative that bidders obtain the information provided in the title report, specifically as it related to outstanding liens, as the successful bidder at the sheriff’s sale auction assumes as must ultimately pay for such liens.

The auction associated with a sheriff’s sale is conducted by way of a voice auction. Typically the creditor/plaintiff (i.e. the bank’s attorney) will being the bidding process with a hundred dollar ($100.00)  bid, with bidding continuing until a winner in the form of the highest bidder for the property is determined. If the successful bidder is a party other than the plaintiff/creditor’s counsel, the plaintiff’s counsel will keep bidding to ensure that another party does not obtain the property in connection with a bid that represents an amount less than the amount of the judgment owed to it. Put differently, the plaintiff’s attorney will continue to escalate its bid until the upset amount, which typically refers to the amount owed on the first mortgage plus certain fees and costs, is reached. This strategy is employed for the purpose of protecting the plaintiff from a situation in which a savvy third-party bidder is able to assume that property for an amount less than the judgment amount resulting in the creditor in question not being made whole. As a corollary to this, once the upset price is reached, the plaintiff/creditor’s attorney often does not continue to bid as the creditor’s interest are protected by virtue of a third-party bid which exceeds the upset price.

Once the highest bidder has been determined the sale will be concluded. At this time, the successful bidder must put down a deposit in the amount of twenty percent (20%) of the successful bid. Further, in New Jersey, the conclusion of this sale triggers a ten (10) day redemption period for the benefit of the defendant property owner. During this period, the former owner can attempt to object to the sale or the former owner can redeem the property by paying off the amount associated with the judgment in question, in addition to other liens, fees and costs. After the redemption period has expired, assuming the former property owner neither redeems nor successfully disputes the sale, a Sheriff’s Sale Deed is prepared. In New Jersey, this occurs approximately thirty (30) days after the auction. On or before the expiration of thirty (30) days from the date of the Sale Deed the balance owed in connection with the successful bid must be paid.

In the context of New Jersey sheriff sale auctions, after the balance is paid the purchaser becomes the rightful owner of the property. As such, the purchaser is required to pay all related fines and record the relevant deed. Moreover, the purchaser is required to furnish the former owner with notice that title has transferred.

If you are interested in learning more about New Jersey sheriff’s sales, or if you have any related questions call us today at (973) 500-8024 or (212) 960-8308, or submit your contact information below and we can contact you directly.

How can a sheriff’s sale be delayed or stopped in New Jersey?

In New Jersey there are four stays, also known as adjournments, pursuant to which a Sheriff’s Sale, following the successful prosecution of a foreclosure action, can be delayed. The borrower is entitled to two of the four stays, and the lender is entitled to the remaining two stays. Each such stay entitles the exercising party with the right to delay a Sheriff’s Sale for a two week period. Additional stays may be available in certain specific circumstances, but such additional stays require a Court Order. Often a foreclosure defense attorney can assist homeowners seeking to stay or contest a scheduled Sheriff’s Sale.

If you have any questions regarding foreclosure or Sheriff’s Sale, or if you have any other related questions call us today at (973) 500-8024 or (212) 960-8308, or submit your contact information below and we can contact you directly.

What is a sheriff’s sale? How does it work in NJ?

In New Jersey, a Sheriff’s Sale effectively marks the end of the foreclosure process, as a Sheriff’s Sale, if successful, results in the sale of a borrower’s former property to an uninterested third party. This is achieved by way of an auction sale of real property conducted by the county sheriff following the successful prosecution of a foreclosure action by a lender. Specifically, the sheriff holds such property pursuant to a court order to seize and sell the property to satisfy a foreclosure judgment, after notice to the public.

Under New Jersey law a Sheriff’s Sale takes place only after the entry of a Final Judgment in a foreclosure case. After the entry of such Final Judgment, a Writ of Execution is issued and sent to the sheriff who in turn is charged with scheduling a sale. The sheriff is required to schedule a sale within 120 days the sheriff’s receipt of the Writ of Execution.

If you are interested in learning more about New Jersey sheriff’s sales, or if you have any related questions call us today at (973) 500-8024 or (212) 960-8308, or submit your contact information below and we can contact you directly.