Legal Question in Real Estate Law in New Jersey

Re: Statute of limitations

Mr. Diamond is correct that a mortgage technically remains a lien on property until it it cancelled on the public records. However, the Statute of Limitations on a private mortgage note that is signed "under seal" is 16 years from the date of default. "Under Seal" at one time meant and actual stamp over the signature but now just the word "Seal" under or after the signature line suffices. Almost all mortgage notes are under seal but if yours isn't, the time period is shortened to 6 years. This means that if you don't sue to collect any balance due within that time, the debtor can avoid paying you even if he owes a million dollars.

Most importantly though, in NJ, you cannot just sue for money due. You must first foreclose on the mortgage and if the sale of the property doesn't raise enough to pay off the debt, you can sue on the Note. This part of the law does not apply if the loan was for business or commercial purposes.

Re: Statute of limitations

if it is a mortgage note, secured by the real estate, there is no limitation. THere is a lien on the property that will stay until the note is satisfied