What Is The NJ Statute Of Limitations On Foreclosures

What is the statute of limitations in New Jersey? If you are a NJ homeowner who defaulted on your monthly mortgage payment, or expect to default on your mortgage due to a financial hardship, knowing how long the statute of limitations on foreclosures is can be an important factor in how you deal with defaulting on payments.

The purpose of the statute of limitations is to protect homeowners from unfair legal action from their mortgage lender. After all, if years have passed since you defaulted, there’s the risk of lost paperwork or important documents. Even still, lenders have taken advantage of homeowners even after the statute of limitations has expired.

If you think your bank and/or servicer has unjustly foreclosed on you outside of the statute of limitations and aren’t following the foreclosure laws in New Jersey, you should talk with a foreclosure defense attorney who can help you learn more about your options.

The attorneys of Denbeaux & Denbeaux are committed to helping NJ homeowners however we can, whether that be looking over important documents, negotiating with your lender, or simply talking you through the New Jersey statute of limitations to see if your mortgage lender is taking unjust legal action against you. 

What Is A Statute Of Limitations?

A statute of limitations is a law that sets the maximum time requirement in which someone is able to take legal action against someone else, following the date of an alleged offense. The time allowed under a statute of limitations is dependent on the nature of the alleged offense and the state in which the offense occurred.

New Jersey has a strict statute of limitations for foreclosure proceedings that both mortgage servicers and homeowners must follow. If you believe that your mortgage servicer has broken the statute of limitations, contact our foreclosure defense attorneys today to see what options you may have.

What Is The Statute Of Limitations For NJ Foreclosures?

N.J.S.A. 2A:50-56.1 is the law that governs the statute of limitations for foreclosures in New Jersey, and it details three important time frames that homeowners should know about. These time restraints include:

  1. 6 years from the maturity date in the note or mortgage
  2. 6 years from the last defaulted mortgage payment
  3. 36 years from the date when the mortgage was recorded

Foreclosure actions can no longer be pursued by your bank once one of the three time periods has passed. 

Because the foreclosure process can be complicated and long, it is possible that one of the time frames in the statute of limitations could be passed once you’re already in foreclosure. In these kinds of situations, the foreclosure may proceed as normal.

If you receive an official Foreclosure Complaint, also known as a Notice of Intent (NOI) to foreclose, from your mortgage servicer after one of the three time periods has been passed you may need additional help from a foreclosure defense attorney to fight your bank.

Facing Foreclosure? Talk To A Foreclosure Defense Attorney

Every year, unsuspecting homeowners are thrown into foreclosure despite having already passed the statute of limitations. The foreclosure defense attorneys at Denbeaux & Denbeaux Law are committed to making sure your bank isn’t taking advantage of you by disregarding your homeowner rights.

Call today to schedule a free initial consultation to see how Joshua Denbeaux may be able to help.

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