Under New Jersey law, which court process must be used when a lender seeks to foreclose on a defaulted mortgage?
Correct Answer
B) Judicial foreclosure through the court system
New Jersey is a strictly judicial foreclosure state. All mortgage foreclosures must proceed through the court system, involving filing a complaint, serving the borrower, obtaining a judgment of foreclosure, and conducting a sheriff's sale. There is no non-judicial or power-of-sale option available in New Jersey.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
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