Sheriff sales are a critical component of the foreclosure process in New Jersey. They are conducted by the sheriff’s department in the county where the property is located. These sales follow specific local rules, which vary from county to county, ensuring a legally sound process for transferring property ownership due to foreclosure.
The Role of Tax & Property Liens
In New Jersey, properties sold at sheriff sales are subject to existing liens, including the first mortgage and any local, state, or federal liens. Prospective bidders must conduct a thorough title search before participating in the auction to understand the extent of these liens, as they will be responsible for paying them if they win the bid.
How the Auction Works
Sheriff sales in New Jersey are conducted through voice auctions. The process typically begins with the plaintiff’s attorney, usually representing the mortgage lender, placing an initial bid of $100. Bidding continues until the highest bid is reached. If a third party outbids the plaintiff’s attorney, the attorney may continue bidding up to the “upset price” – the amount owed on the mortgage plus additional costs – to protect the lender’s interests.
Finalizing the Sale
Once the highest bid is determined, the winning bidder must immediately deposit a 20% deposit. Following the auction, New Jersey law mandates a 10-day redemption period, during which the former owner can either contest the sale or redeem the property by paying off the judgment and associated liens. If the former owner does not redeem or successfully dispute the sale, a Sheriff’s Sale Deed is prepared approximately 30 days post-auction. The balance of the bid must be paid within this period. Upon completion, the purchaser becomes the rightful owner, responsible for paying related fines and recording the deed.
Importance of Legal Guidance
Navigating the sheriff’s sale process can be complex, with significant legal and financial implications. Property owners and prospective bidders must fully understand their rights and responsibilities. Consulting with an experienced attorney can provide invaluable guidance and ensure that all legal procedures are correctly followed.
Contact The GC Law Firm today for expert legal assistance to ensure your rights and interests are protected throughout the foreclosure process.