1. The Defendant (borrower or property owner) misses several mortgage payments - usually 2-4 payments.

2. The Plaintiff (Lender, Bank, or Creditor) files Notice of Default or Lis Pendens with the Supreme Court in Trenton, NJ and that information is passed to the county offices.

3. New Jersey is a Judicial Foreclosure State which means the court approves the sale and the Plaintiff gives notice to the defendant. If the response is inadequate and the required loan payment and fees are not paid, the Plaintiff goes to court for Auction Sale Approval. This is commonly known as a Sheriff's Sale or Sheriff's Auction sale.

4. Once the sale is scheduled, it must be publicly advertised in two county newspapers for four consecutive weeks, and it must also be posted on the property.

5. The Plaintiff must notify the Defendant at least 10 days prior to the sale. In most cases, Defendants are allowed two adjournments to try to rectify the pending foreclosure.

6. At the Sheriff's Sale, the property is sold to the highest live bidder, and a 20% deposit is by cash, certified or bank check. The balance is due in 30 days.

7. After the Sheriff's Sale, the Defendant has 10 days to redeem the property. If the property is not redeemed (right of redemption), the Winning Bidder owns the property. If the property is not vacant, the new owner may have to obtain a Writ of Possession to have the occupants evicted.

8. If the Foreclosure Auction does not pay the loan and fees in full, The Plaintiff can file a deficiency judgment for the remainder of the loan.

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