If a homeowner does not pay their mortgage on time, it is possible that the lender could start the foreclosure process. Foreclosure is the legal proceeding by which the lender can take back ownership of a property. However, if the case takes too long to resolve, a statute of limitations may apply. Typically, a case must be open for 5 years or longer before a statute of limitations claim can be made.
Poor finances or just bad luck can put heavy financial stress on mortgage-paying homeowners. If foreclosure looms, several options are available. The foreclosure process in New Jersey, as in other states, is a relatively lengthy and complex procedure that all parties want to avoid. It's important, above all, to keep lines of communication open and to cooperate with the lender on any late-payment issues.
While an individual may think of foreclosure as an action pertaining to failure to make payments on a mortgage, action can also be brought in connection with tax liens and with unpaid assessments to homeowner or condominium associations. Actions are filed in Trenton with the Office of the Superior Court Clerk.