New Jersey Sheriff Sales: The Complete Guide

A sheriff sale is a public auction of real estate ordered by the court. In New Jersey it is almost always the final step of a mortgage foreclosure: a lender (the plaintiff) sued the owner (the defendant), won a final judgment, and the court directed the county sheriff to sell the property to pay that judgment.

The sheriff does not decide whether a property is sold. The Superior Court, Chancery Division does that. The sheriff carries out the court's writ of execution, which is the order to sell.

Investors buy at sheriff sales for three main reasons:

• Below-market prices. Many properties sell for less than retail value because buyers take on risk and must pay quickly.
• Steady supply. New Jersey has thousands of foreclosures in the pipeline at any time, and many counties hold sales every week.
• A public, documented process. Sales are advertised in advance, conducted by a government office and backed by a public court case.

A sheriff sale is not a normal home purchase. You usually can't go inside, there are no seller disclosures, some debts survive the sale, and dates move constantly. Every dollar saved on price is paid for with risk you need to understand.

New Jersey is a judicial foreclosure state: every foreclosure goes through the Superior Court. That makes the process slow, but also well documented. A property usually reaches a sheriff sale through these stages:

1. 1Default. The owner misses payments. Lenders generally must send a Notice of Intention to Foreclose at least 30 days before filing.
2. 2Complaint filed. The lender files a foreclosure complaint and serves the owner and anyone else with an interest. A lis pendens is recorded.
3. 3Answer or default. Uncontested cases are handled by the Office of Foreclosure; contested cases go before a judge. Many pass through the Foreclosure Mediation Program.
4. 4Final judgment. The court enters a final judgment setting the amount due.
5. 5Writ of execution. The court directs the sheriff to sell the property.
6. 6Sale scheduled and advertised. The sheriff sets a date and publishes notice in the weeks before the sale.
7. 7Adjournments. The sale date often moves, sometimes many times.
8. 8Sheriff sale. The property is auctioned and the winning bidder pays a deposit.
9. 9Ten-day period. Objections can be filed for ten days after the sale, and the owner can still redeem.
10. 10Balance paid and deed delivered. The buyer pays the balance and receives a sheriff's deed.

New Jersey foreclosures are among the slowest in the country. It is common for two to three years or more to pass between default and sheriff sale.

There is no single state website for New Jersey sheriff sales. Each of the 21 county sheriffs publishes its own list. Formats, update times and the details included all differ from county to county.

That's why investors who follow more than one county end up checking many websites every week. SheriffScout collects all 21 counties into one consistent list and records every change. See the sheriff sale page for each county below.

Every county shows slightly different fields, but these terms appear on almost every New Jersey listing:

A large share of scheduled New Jersey sales are adjourned at least once. Sales can be moved by:

• The defendant (owner). New Jersey law allows the owner a limited number of adjournments, generally two, each for a short period.
• The plaintiff (lender). For loss-mitigation review, paperwork or a pending payoff.
• The court. A judge can stop or move a sale, for example while a motion is decided.
• Bankruptcy. If the owner files, the automatic stay stops the sale immediately.

Re-check a property's status the day before and the morning of the sale, and avoid paying for title work until a sale looks likely to go forward. Auction history in SheriffScout keeps every date change and who requested it.

1. 1The sheriff calls the property by sheriff number and address.
2. 2The plaintiff's attorney opens the bidding, often with a nominal bid.
3. 3The plaintiff bids up to its upset price; third parties bid against the plaintiff and each other.
4. 4The highest bidder wins and signs the sale paperwork with the sheriff.

If no one bids more than the upset price, the property is sold to the plaintiff and becomes bank-owned. Winning bidders generally pay 20% of the bid at the sale and the balance within about 30 days, in the forms of payment the sheriff accepts. Because of that timeline, traditional mortgage financing is rarely an option. Always read each county's conditions of sale.

A foreclosure sale wipes out the foreclosed lien and properly named junior liens. It does not wipe out senior liens, liens of parties who weren't named, or certain government claims. Budget for these:

Order a title and lien search from a title company before bidding on any property you're serious about.

Winning the auction doesn't make the property yours yet. Under New Jersey's court rules, objections can be filed within ten days of the sale, and the owner can generally redeem until the sheriff's deed is delivered. If the owner redeems, the buyer gets the deposit back.

After the balance is paid and the ten-day period passes, the sheriff delivers the sheriff's deed. If the former owner still lives there, a court order is required to remove them. Residential tenants have strong protections under New Jersey's Anti-Eviction Act; a foreclosure does not by itself give a new owner grounds to evict. Never use self-help eviction.

• Confirm the sale is still scheduled and check its adjournment history.
• Order a title and lien search; check taxes, water, sewer and tax sale certificates.
• Look up the foreclosure docket and who was named as a defendant.
• Drive by to check occupancy and exterior condition.
• Estimate market value and repairs, then set a maximum bid and stick to it.
• Read the county's conditions of sale and line up your deposit and balance funds.

SheriffScout gives every property a due diligence checklist, a Deal Analyzer and a Bid Tracker to work through these steps.