If you’ve fallen behind on your mortgage payments, you may be facing the start of the foreclosure process. Foreclosure is the legal process a lender uses to take back a home when the borrower is behind on payments. There are two main types of foreclosure: judicial and non-judicial foreclosure.
New Jersey is a judicial foreclosure state, which means that every foreclosure has to go through the court system. This process benefits New Jersey residents by providing them with legal rights and opportunities to defend themselves against foreclosure, which non-judicial foreclosure states don’t offer.
Understanding the NJ foreclosure process can help ensure you take advantage of all the protections available to help you keep your home.
Joshua Denbeaux is an NJ foreclosure lawyer who helps homeowners fight foreclosure. If you are worried about losing your home, contact us today for a free consultation to learn what foreclosure defense opportunities may be available for your situation.
Judicial vs Non-Judicial Foreclosure
New Jersey is one of the judicial foreclosure states, meaning all foreclosures that happen in the state must go through the court system. That said, it can still be helpful to understand the difference between judicial and non-judicial foreclosure.
What is a Judicial Foreclosure?
In a judicial foreclosure, the lender is legally required to file a lawsuit to foreclose on a property. Because it must go through the court system, a judge will oversee the case and issue the final judgment.
Judicial foreclosure also provides homeowners with legal protections throughout the process. For example, the lender is legally obligated to send a Notice of Intent (NOI) to the borrower before filing a lawsuit and must offer loss mitigation options, such as loan modifications or mediation programs, when possible.
The judicial foreclosure process typically takes a year or more to complete because it has to go through the court system.
What is a Non-Judicial Foreclosure?
In a non-judicial foreclosure, the lender is not required to go through the court. Instead, the lender follows the foreclosure process outlined in the mortgage or deed of trust. Although the lender is not legally required to file a lawsuit to foreclose, the homeowner can still bring the case to the court by filing their own lawsuit.
Rather than being overseen by a judge, a non-judicial foreclosure is overseen by an appointed trustee who acts as a neutral third party. Because the court isn’t involved, the timeline for non-judicial foreclosure is typically much faster, sometimes as short as a few months.
Benefits of Judicial Foreclosure
Because the court is involved in every judicial foreclosure case, homeowners have more protections and opportunities to fight for their homes. Below are some of the main benefits of living in a judicial foreclosure state.
Right to Defend
In New Jersey, homeowners have the legal right to defend their case in court before a foreclosure can move forward. Unlike a non-judicial foreclosure, where there is no built-in court process, you don’t need to file a separate lawsuit. Your defense is built into the process, providing you with additional time and protection against foreclosure.
Court Involvement
In a judicial foreclosure, the lender has to prove their case to a judge. The judge will review the evidence and ensure the lender is following the foreclosure laws and is not in violation of the legal foreclosure process. Having this court oversight can help lower the risk of wrongful foreclosure.
Homeowners can also use the legal discovery process to obtain documents that could strengthen their defense.
Recorded Proceedings
Because the case is handled in court, a formal record of all of the proceedings is created. Having this documentation helps increase transparency and can make it easier to identify any violations or mistakes that could provide grounds to challenge the foreclosure.
Access to Mediation & Loss Mitigation Options
New Jersey offers a foreclosure mediation program to help homeowners negotiate solutions to foreclosure with their lender through loss mitigation options, such as loan modifications, forbearance, or repayment plans.
Slower Timeline
Because of the court’s involvement, a judicial foreclosure can take up to one year, if not longer, to complete. This longer timeline can help homeowners get additional time to explore options to stop foreclosure or hire legal support.
Working with an NJ Foreclosure Attorney
Although judicial foreclosure offers more benefits and protections than non-judicial foreclosure, working with an experienced NJ foreclosure attorney is still important.
At Denbeaux & Denbeaux, we provide NJ foreclosure help. Our attorneys can guide you through the mediation process, negotiate with your lender, identify legal violations, and build a strong defense strategy to protect you against foreclosure.
Schedule a consultation today to learn more about how we can help you protect your home.
