Case Law Summaries

Bankers Trust Company of California v. Wiltbank

• Opinion Date: May 21, 2001
• Real Property Law
• E-Mail

FORECLOSURE—Redemption is cut off ten days after a sheriff’s foreclosure sale unless an owner can demonstrate that the sale was defective.

A foreclosure sale took place, but before the sheriff delivered the deed to the successful bidder, an objection was filed by the owner of the property whose deed had not been recorded until after the foreclosing lender’s lis pendens had been filed. The owner did not appear at the sale because she allegedly misread the date on the sale notice. Under case law, the owner’s right of redemption would not be cut off until the delivery of the Sheriff’s Deed, and a Court rule permits service of a motion objecting to a sheriff’s sale within ten days after the sale or up until the delivery of the deed. Also, under New Jersey law, “the right of redemption is cut off at the expiration of ten days following the sheriff’s sale.” Consequently, “the right to redeem is cut off if the party with the right to redeem fails to redeem within the ten-day period,” but redemption might be permitted after the ten-day period “upon a showing by the objector of some defect at the sheriff’s sale.” In this case, however, the property owner failed to demonstrate that the sheriff’s sale was defective and her right of redemption was limited to the ten-day period that passed without redemption taking place.

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