Kevin defaulted on his mortgage in Essex County, New Jersey. The lender has filed a foreclosure complaint. Kevin failed to respond within the required time. Which is the correct sequence of remaining steps in New Jersey's judicial foreclosure process?
Correct Answer
B) Default judgment entered → final judgment of foreclosure → sheriff's sale → 10-day upset period
In New Jersey's judicial foreclosure process, after a borrower fails to respond to the foreclosure complaint, the lender can apply for a default judgment. The court then enters a final judgment of foreclosure, which sets the amount owed and authorizes the sheriff's sale. The county sheriff conducts the public auction. After the sale, there is a 10-day upset period during which the sale can be challenged. If no upset occurs, the sheriff issues a deed to the purchaser. This sequence is established under N.J. Court Rules, Rule 4:64.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Predatory lending refers to unfair, deceptive, or abusive lending practices that impose unjustified terms on borrowers, often targeting vulnerable populations. It includes practices like excessive fees, inflated appraisals, and unnecessary refinancing.
RESPA is a federal law that requires lenders to provide borrowers with information about settlement costs, prohibits kickbacks and referral fees, and limits escrow account deposits. It applies to federally related mortgage loans.
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
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