Bill Text: NJ A4075 | 2014-2015 | Regular Session | Amended
Bill Title: Provides expedited procedure for foreclosing residential properties in uncontested actions.
Spectrum: Strong Partisan Bill (Democrat 10-1)
Status: (Introduced - Dead) 2015-05-07 - Reported out of Assembly Comm. with Amendments, 2nd Reading [A4075 Detail]
Download: New_Jersey-2014-A4075-Amended.html
ASSEMBLY, No. 4075
STATE OF NEW JERSEY
216th LEGISLATURE
INTRODUCED JANUARY 12, 2015
Sponsored by:
Assemblyman CARMELO G. GARCIA
District 33 (Hudson)
Assemblyman JERRY GREEN
District 22 (Middlesex, Somerset and Union)
Assemblyman BENJIE E. WIMBERLY
District 35 (Bergen and Passaic)
Assemblyman BOB ANDRZEJCZAK
District 1 (Atlantic, Cape May and Cumberland)
Assemblywoman MARIA RODRIGUEZ-GREGG
District 8 (Atlantic, Burlington and Camden)
Assemblywoman MILA M. JASEY
District 27 (Essex and Morris)
Co-Sponsored by:
Assemblymen Eustace, Fuentes, Burzichelli, Gusciora and Johnson
SYNOPSIS
Provides expedited procedure for foreclosing residential properties in uncontested actions.
CURRENT VERSION OF TEXT
As reported by the Assembly Financial Institutions and Insurance Committee on May 7, 2015, with amendments.
An Act concerning foreclosure of residential properties and supplementing P.L.1995, c. 244 (C.2A:50-53 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Notwithstanding any other law or rule to the contrary, if a residential mortgage lender's action to foreclose a mortgage on real property pursuant to the "Fair Foreclosure Act," P.L.1995, c.244 (C.2A:50-53 et seq.), 1or the action of any other lienholder whose lien is authorized by law to be foreclosed in the same manner as a residential mortgage,1 is uncontested as defined pursuant to R.4:64-1(c) of the Rules Governing the Courts of the State of New Jersey, the lender 1or lienholder1 may file a Motion for Expedited Judgment and Sale. The motion shall be accompanied by an affidavit from a person having personal knowledge of the contents and shall contain:
a. the specific facts to establish that the action is uncontested; and
b. 1with respect to lenders,1 a statement that the lender has provided the debtor, as part of the notice of intention to foreclose given to the debtor pursuant to section 4 of P.L.1995, c.244 (C.2A:50-56), information on:
(1) the availability of housing counseling from HUD certified housing counseling agencies in New Jersey; and
(2) the debtor's right to attend and complete a program of housing counseling provided by a HUD certified housing counseling agency and obtain certification that the debtor has completed the program.
2. If the motion and affidavit filed pursuant to section 1 of this act are found to be in compliance with the provisions of that section, have been served on the debtor and other appropriate parties in accordance with the Rules Governing the Courts of the State of New Jersey, and are otherwise satisfactory, the Superior Court shall:
a. enter final judgment in foreclosure;
b. direct issuance of a writ of execution to the Sheriff of the county in which the real property is situate that provides for the public sale of the property within 90 days of the filing of the service of the notice of intention that commenced the foreclosure action pursuant to section 4 of P.L.1995, c.244 (C.2A:50-56); and
c. order payment by the lender 1or lienholder, as appropriate1 of the following amounts, as a fee for the use of the process for expedited judgment and sale of the property as provided for in this act:
(1) $250 to the court for court costs;
(2) $250 for foreclosure sale costs to the Sheriff of the county in which the real property is situate; and
(3) $500 to the New Jersey Housing and Mortgage Finance Agency, which shall be used by the agency for the purpose of funding HUD certified housing counseling agencies located in New Jersey, in a manner to be determined by the agency.
3. In a manner consistent with the Rules Governing the Courts of the State of New Jersey, the debtor or any interested party may present a defense in response to the Motion for Expedited Judgment and Sale. The defense shall be accompanied by an affidavit stating that the defense is not made solely for the purpose of delaying the relief requested pursuant to the Motion for Expedited Judgment and Sale. The defense shall be presented within 90 days of the filing of the service of the notice of intention that commenced the foreclosure action. Any defense that is presented without the affidavit, or that is not presented within the 90 day time period, shall not be considered by the court.
14. When a lender is entitled to pursue an expedited foreclosure pursuant to this act but fails to file a Motion for Expedited Judgment and Sale, and the mortgage lien of the lender is superior to all or part of the lien of a condominium or homeowners association, the condominium or homeowners association may file a Motion to Compel Expedited Judgment and Sale or in the Alternative Payment of Association Fees. The motion shall be accompanied by an affidavit from a person having personal knowledge of the contents and shall contain the specific facts to establish that the action is uncontested.1
15. If the motion and affidavit pursuant to section 4 of this act are found to be in compliance with the provisions of that section, have been served on the lender, debtor and other appropriate parties in accordance with the Rules Governing the Courts of the State of New Jersey, and are otherwise satisfactory, the Superior Court shall enter an order:
a. compelling the lender to file a Motion for Expedited Judgment and Sale in accordance with this act within 30 days of the entry of the order; or
b. in situations in which the lender declines to file the motion, compelling the lender to pay to the condominium or homeowners association the assessments for periodic payments due for regular and usual operating and common area expenses pursuant to the association's annual budget coming due on or after the thirty-first day following entry of the order.1
1[4.] 6.1 Nothing in this act shall be construed to affect the rights of a tenant to possession of a leasehold interest under the Anti-Eviction Act, P.L.1974, c.49 (C.2A:18-61.1 et seq.), the "New Jersey Foreclosure Fairness Act," P.L.2009, c.296 (C.2A:50-69 et seq.), or any other applicable law.
1[5.] 7.1 For purposes of this act, "HUD" means the United States Department of Housing and Urban Development, and "HUD certified housing counseling agency" means a community-based non-profit organization, exempt from taxation pursuant to section 501(c)(3) of the Internal Revenue Code of 1986, 26 U.S.C. s.501(c)(3), which has been certified by the United States Department of Housing and Urban Development as experienced in housing counseling for at least one year prior to receiving certification.
1[6.] 8.1 This act shall take effect on the 90th day next following enactment.
