Legal Question in Real Estate Law in New Jersey

From the facts that you present, the SC bank will not be able to foreclose on your NJ property. However, you will still be liable for any deficiency in the payoff of your SC property. In foreclosures, the banks have little incentive to keep costs down or achieve real market value for the property. So, unless you have a good deal of equity in the property (in which case you would have other alternatives), there is likely to be a deficiency. The SC bank will then have two options. They can sue you in NJ or sue in SC and have the judgment docketed in NJ. Either way, you wind up with a lien on your NJ real property. If the bank does things right (for them), they may also be able to execute against the NJ real property which means that the sheriff will sell it. However there are disadvantages to that and they would probably just sit on the lien and wait to get paid (with interest) when you sell.

See also: http://info.corbettlaw.net/lawguru.htm