Finance

In NJ, the right of redemption allows a homeowner facing foreclosure to:

ARemain in the property indefinitely without payments

BRedeem (reclaim) the property by paying all amounts owed before the foreclosure sale (equitable) or, in some states, after✓ Correct

CTransfer the mortgage to another party

DForce the lender to accept a deed in lieu

Explanation

In NJ, the equitable right of redemption allows a borrower to redeem the property before the foreclosure sale by paying all principal, interest, fees, and costs. NJ does not have a post-sale statutory redemption period.

People Also Study

Key Terms to Know

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

Deed of Trust

A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.

Amortization

The gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.

Adjustable-Rate Mortgage (ARM)

A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.