New Jersey Amends Provisions Regarding Foreclosure
The state of New Jersey has recently amended its provisions relating to foreclosure, effective immediately.
The purpose of New Jersey Senate Bill 362 is to provide that a deed restriction on affordable housing is not extinguished in the event of a foreclosure on the property. This bill also requires that whenever a debtor is given notice that a foreclosure is pending on residential property that is a unit of affordable housing subject to affordability controls, notice must be given to the municipal clerk and the Commissioner of Community Affairs.
The foreclosing lender is also required to furnish the debtor with the address and phone number of the municipal affordable housing manager and the New Jersey Housing and Mortgage Finance Agency. The bill further removes the ability of a foreclosing lender to use alternative methods of foreclosure not requiring a public sale when the housing unit involved is subject to affordability controls.
Finally, the bill requires a creditor serving a “Notice of Intention to Foreclose” on an affordable housing unit to serve a copy of the notice on the municipal affordable housing liaison, if one has been appointed.
Zachary Pearlstein, JD, is a Regulatory Compliance Director with CLA's Mortgage Advisory Division. He joined CLA on January 1, 2014, as part of its acquisition of Bankers Advisory, Inc. Zachary oversees Mortgage Advisory's regulatory compliance team, which focuses on federal and state compliance, fair lending, and the Home Mortgage Disclosure Act (HMDA). He is a graduate of Brandeis University and earned his juris doctor at Suffolk University Law School. He is admitted to the Massachusetts Bar.
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