New Jersey Sheriff Sale

[Alkjad Lelaj]

Hello,

I'm interested in bidding on properties at sheriff sales in New Jersey. Before I do so, I have a few questions that I hope can be answered for me by someone who has both experience and knowledge in acquiring properties at New Jersey sheriff sales. It would help me a great deal.

1. I attend a sheriff sale in New Jersey, in which a property (for example: a single family home) has an upset price of $200,000. Now, I become the successful bidder at $300,000. Also, I've conducted a title search beforehand, which found no easements, restrictions, or judgments, but liens of a $100,000 1st mortgage and a $60,000 2nd mortgage. Aside from the $300,000 winning bid that I have to pay, is the mortgage that I need to pay based on lien priority, so based on which mortgage is foreclosing on that property?

2. Using the same example, after I conduct a title search, I find that the $100,000 1st mortgage is foreclosing on the property, so am I responsible for paying the $300,000 winning bid (since the $100,000 1st mortgage is already factored into the $200,000 upset price) and the $60,000 2nd mortgage is divested (wiped off completely)?

3. Vice versa, I find that the $60,000 2nd mortgage is foreclosing on the property, so am I responsible for paying the $300,000 winning bid (since the $60,000 2nd mortgage is already factored into the $200,000 upset price) and whatever amount is remaining on the $100,000 1st mortgage?

4. I'm interested in bidding on a property that has an upset price of $150,000.00. Now, a title search was conducted through a title company, in which they found no judgments, liens, easements, or restrictions, but just a $50,000 mortgage. Based on your experience, is this $50,000 mortgage already factored into the upset price of $150,000.00?