DEALING WITH FORECLOSURES

     

Policies in Place
Mortgage Relief & Stabilization Act created the Mortgage Stabilization Program and the Housing Assistance and Recovery Program.  It also imposed additional requirements on lender foreclosing mortgage and appropriated $40 million from the “Long Term Obligation and Capital Expenditure Fund.”  

NJ Foreclosure Fairness Act strengthens protections to tenants and owners of residential properties facing foreclosure, clarifies forbearance provision in the Mortgage Stabilization and Relief Act, and modifies creditor liability for vacant properties in foreclosure.

2017 State Legislative Policy Priorities
Creates Mortgage Assistance Pilot Program (A303/S1629) sponsored by Asm. Singleton and Senator Van Drew. Creates a pilot program that allows homeowners with negative home equity, and who are in default of a mortgage owned by the agency, to lower the remaining principal owed on the mortgage to an amount more reflective of current market realities. This will occur in exchange for conveying an equity share in the property to the agency. Passed Assembly Appropriations Committee 1.30.17.

Foreclosure Prevention Funding (A2036) sponsored by Asm. Green/Asw. Sumter. Creates a Foreclosure Prevention and Neighborhood Stabilization Revolving Trust Fund; places temporary surcharge on mortgage foreclosure complaints. The fund will be financed through a temporary $1,200 surcharge placed on each foreclosure complaint filed in the State. DCA shall provide up to $500,000 from the fund to train qualified vendors to provide training to local governments and non-profit entities undertaking neighborhood stabilization efforts. The Department may utilize $500,000 in the first year of the fund, and $300,000 each year thereafter, for the purpose of collecting and disseminating foreclosure data. Following these disbursements from the fund, the next $10 million collected during the fiscal year shall be allocated to qualified non-profit entities for the purpose of maintaining or expanding their foreclosure prevention programs. Entities receiving these funds shall issue quarterly reports detailing the success of their foreclosure prevention programs.

Codifies and funds the Foreclosure Mediation Program (A1029/S1130) sponsored by Asw. Jasey and Senator Rice. This bill also dedicates monies from foreclosure filing fees and fines to administer the program. Passed Assembly Housing Committee 5.12.16.

Establishes process for short sale buyers during residential mortgage foreclosures (A2060/S2333) sponsored by Asm. Gusciora and Senator Cruz-Perez. This bill would require lenders participating in a short sale to respond to a good faith offer within 60 days. Signed into law by the Governor 7.21.17. (P.L. 2017 c. 157)

Hold Creditors responsible for Non-residential buildings (A2952/S2701) sponsored by Asm. Andrzejczak/Land and Senator Van Drew. Requires creditors to maintain vacant and abandoned non-residential properties under foreclosure.

Hold Creditors responsible for building interiors (A2953/S1630) sponsored by Asm. Andrzejczak/Land and Senator Van Drew. Requires creditors to maintain the interior of vacant and abandoned residential properties under foreclosure.

Resources 

Articles of Interest