N.J. DCA Landlord/Tenant Information Series — Foreclosure, Tenants Rights Bulletin

New Jersey Department of Community Affairs
Division of Codes and Standards
Landlord-Tenant Information Service

FORECLOSURES
TENANT’S RIGHTS
February 2010

Due to the national mortgage crisis many properties are being foreclosed upon in New Jersey.
Tenants may receive letters from landlords, realtors or attorneys that appear to be official notices
threatening tenants with eviction due to foreclosures. These notices may contain “cash for keys”
or “bona fide” cash offers, whereby tenants are offered money to move out of a property in a
specific timeframe. Tenants are not required by law to accept these “offers,” and may not be
evicted for not accepting them. A landlord must have good grounds under the New Jersey
Eviction Law, N.J.S.A. 2A:18-61.1 to evict a tenant. Tenants should be aware that they retain
their rights under landlord-tenant laws even in properties that are being or have already been
foreclosed.

A foreclosure may occur when a landlord defaults on paying his mortgage. In New Jersey the
creditor can bring suit for foreclosure against the defaulting borrower (landlord) for delinquency
of payments and force a sale of the property to recover money due on a loan.