On Monday April 30th, Governor Phil Murphy signed a package of bills into law designed to help New Jersey homeowners facing foreclosure stay in their homes, as well as addressing other aspects of the NJ foreclosure crisis.
Here is a breakdown of these new laws. We will be providing more information as it becomes available.
- A664 – Codifies the Judiciary’s Foreclosure Mediation Program; dedicates monies from foreclosure filing fees and fines. Sets forth good faith requirement in court mediation program including civil penalty of $1,000 + attorneys’ fees for any violations.
- A4997 – “Mortgage Servicers Licensing Act.” Contains important language regarding notices to borrower about changes in Servicers.
- A4999 – Requires filing of certain creditor contact information with residential mortgage foreclosure complaint and lis pendens.
- A5001 – Significantly shortens the statute of limitations for residential mortgage foreclosures from 20 years to 6 years.
- A5002 – Permits certain planned real estate developments to file certain liens; concerns limited priority of certain liens.
- S3411 – Requires receivership appointment application prior to certain foreclosure actions; requires Notice of Intent to Foreclose on residential mortgage to be filed within 180 days prior to commencing foreclosure; limits reinstatement of dismissed mortgage foreclosure actions:
- The bank can now only reinstate action for good cause shown a maximum of 3 times for any action (no such limit existed before).
- S3413 – Makes certain changes to summary action foreclosure process under “Fair Foreclosure Act.”
- S3416 – Clarifies that “New Jersey Residential Mortgage Lending Act” applies to certain out-of-state persons and those involved in residential mortgage lending in the State.
- S3464 – Revises certain procedures for real estate foreclosure sales; alters adjournment of sale process.
- N.J.S.2A:17-36, the statute that governs adjournments, has been amended — Borrowers can now request two 30-day (instead of 14-day) adjournments to a sheriff sale.
If you are facing foreclosure in New Jersey and have questions about any of these new laws, contact the Law Office of Ira J. Metrick today.