New Jersey Enacts Provisions Regarding Foreclosure
The state of New Jersey has recently enacted several foreclosure-related bills. The effective dates range from immediately to November 1, 2019.
Assembly Bill 664:
This bill requires that at the time a borrower receives a notice of intention to foreclose, the creditor must provide a written notice of the option to participate in the Foreclosure Mediation Program. In addition, upon the filing of a mortgage foreclosure complaint, the borrower must again receive written notice of the option to participate in the Foreclosure Mediation Program. The bill also creates a dedicated “Foreclosure Mediation Fund,” to be used for the operation of the Foreclosure Mediation Program and to enhance the integrity of the mortgage foreclosure review process.
Assembly Bill 4999:
This bill requires a creditor that institutes a foreclosure proceeding on residential property to file the following information along with the summons and complaint in Superior Court, and with the lis pendens filed with the office of the county clerk or register of deeds and mortgages: the name and contact information for the representative of the creditor who is responsible for receiving complaints of property maintenance and code violations; and if the creditor is located out-of-state, the full name and contact information of an in-state agent who will be responsible for the care, maintenance, security, and upkeep of the exterior of the property if it becomes vacant and abandoned.
Assembly Bill 5001:
This bill reduces the statute of limitations in residential mortgage foreclosure actions from twenty years to six years from the date on which the debtor defaulted, in situations in which the date of default is used as the method to determine when the statute of limitations has expired. The bill therefore revises the alternative methods under the “Fair Foreclosure Act” for determining when the statute of limitations for the foreclosure of a residential mortgage has expired by providing that an action shall not be commenced following the earliest of: (1) six years from the date fixed for the making of the last payment; (2) thirty-six years from the date of recording of the mortgage; or (3) six years from the date on which the debtor defaulted.
Senate Bill 3411:
This bill revises the “Fair Foreclosure Act” to require that a notice of intention to foreclose, including a notice of the right to cure the default, which currently must be sent at least 30 days in advance of a residential mortgage lender commencing foreclosure or other legal action to take possession of a residential property, shall not be sent more than 180 days in advance of taking that action.
The bill provides that, if more than 180 days have elapsed since the date the notice of intent to foreclose is sent, and any foreclosure or other legal action to take possession of the residential property has not yet been commenced, a new notice shall be sent at least 30 days, but not more than 180 days, in advance of that action.
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.
Comments are closed.