Breaking Down The New NJ Foreclosure Laws

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).
  • 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.

  Primary Sidebar

  Browse Blogs by Category

  Recent Articles

  Meet Ira J. Metrick

  

  For more than 20 years, the focus of my law firm has been consumer advocacy. Whether it has been fighting foreclosure, taking on abusive debt collectors, or dealing with issues related to bankruptcy proceedings, I have helped my clients tackle seemingly insurmountable financial difficulties. continue reading

  You May Also Like

  June 17, 2024

  How Do Mortgage Surplus Funds Work in NJ?

  In New Jersey, if a foreclosed property sells at a sheriff’s sale for more than the debt owed on it, June 17, 2024

  What is the NJ Fair Foreclosure Act?

  On January 12th, 2024, New Jersey’s Fair Foreclosure Act was amended to include a new foreclosure protection for homeowners. Specifically,

  June 17, 2024

  Zombie Foreclosures Are On The Rise

  Homeowners have been falling victim to “zombie second mortgages,” which are loans that disappeared several years ago only to discover

  Don’t Face Complex Legal Issues Alone, Schedule a Free Consultation Now

  For more than 20 years, the focus of my law firm has been consumer advocacy. Whether it has been fighting foreclosure , helping apply for Mortgage Loan Modifications , assisting with Surplus Funds, or helping resolve complex federal tax lien issues , I’ve helped my clients fight against overwhelming financial difficulties.

  No matter what stage you’re at in the sheriff sale , foreclosure, or federal tax lien process, you may still have options. When you retain my firm, our office can help you legally stop calls from your lender and navigate tax lien or foreclosure notices you may have received. Contact us today to schedule a free no-obligation consultation.