Foreclosure help in New Jersey: your options, step by step

Last reviewed September 29, 2026. General information, not legal advice.

How does foreclosure work in New Jersey?

New Jersey uses judicial foreclosure, meaning the lender must go through the Superior Court. The process usually starts with a Notice of Intention to Foreclose, then a court complaint, then a final judgment. The county sheriff then schedules a public sale. Each stage has deadlines, and each gives you a chance to respond, mediate, or sell.

1. Missed payments and a Notice of Intention to Foreclose. The lender must send this notice before filing suit.
2. Foreclosure complaint. You're served with court papers. This is when to request free mediation.
3. Final judgment. The court sets the amount owed.
4. Sheriff's sale. In Hudson County, sales are held at 595 Newark Avenue in Jersey City. See our sheriff's sale guide.
5. After the sale. A short window to object or redeem, then the deed transfers and the buyer can seek possession.

What are my options?

Most homeowners have several options: bring the loan current, apply for a loan modification or repayment plan, use free mediation, refinance, sell the house (at market value or as-is), agree to a short sale, or talk to a bankruptcy attorney. The earlier you act, the more options stay open.

• Keep the house: reinstatement, loan modification, repayment plan, forbearance, or mediation.
• Get free advice: a HUD-approved housing counselor at 1-800-569-4287.
• Sell with an agent: often the highest price, if you have time for showings and a buyer's financing.
• Sell as-is to a direct buyer: faster and simpler, usually for less than a full retail sale, but often more than you'd keep after an auction.
• Talk to an attorney: bankruptcy and other legal options can change your timeline.

When does selling before the sheriff's sale make sense?

Selling before the sheriff's sale makes the most sense when you have equity, meaning the house is worth more than everything owed on it, and keeping the home isn't realistic. A sale lets you pay off the loan and keep the difference. At auction, bids often come in low, and fees and interest keep adding up.

What protections do I have when selling to an investor?

If you live in the home, it has one to six units, and it's in foreclosure, New Jersey's Foreclosure Rescue Fraud Prevention Act gives you specific rights. The contract must be in writing with required notices, and you have the right to cancel for a period after signing. An honest buyer explains these rights up front and encourages you to have an attorney review the deal.

Red flags: upfront fees to "stop" a foreclosure, pressure to sign the same day, deals where you sign your deed away and "rent it back," and anyone who says not to talk to your lender or a lawyer.