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.
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.