Sponsored by:
Senator BRIAN P. STACK
District 33 (Hudson)
SYNOPSIS
Provides three-year protection against foreclosure to owners of real property damaged during “Superstorm Sandy,” which made landfall on October 29, 2012.
CURRENT VERSION OF TEXT
As introduced.
An Act providing protection from mortgage foreclosure for owners of real property damaged during “Superstorm Sandy,” which made landfall on October 29, 2012.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. The provisions of this section shall apply only to obligations secured by mortgage, trust deed, or other security in the nature of a mortgage upon residential real property damaged as a result of “Superstorm Sandy”, the major storm that made landfall in New Jersey on October 29, 2012.
b. Notwithstanding the provisions of any law, rule or regulation to the contrary, on and after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), in a proceeding commenced in any court to enforce a mortgage obligation arising out of nonpayment of any sum due under the mortgage, or out of any other breach of the terms of the mortgage occurring upon residential real property damaged as a result of “Superstorm Sandy,” the court may, after a hearing, in its discretion, on its own motion, and shall, except as hereinafter provided in this act, on application to it by the owner of the mortgaged property, unless in the opinion of the court the ability of that person to comply with the terms of the mortgage obligation is not materially affected by any reason relating to “Superstorm Sandy,” as provided in P.L. , c. (C. ) (pending before the Legislature as this bill):
(1) Stay the proceedings; or
(2) Make such other disposition of the case as may be equitable to conserve the interest of all parties.
c. No sale, foreclosure, or seizure of residential real property for nonpayment of any sum due under any mortgage obligation on a real property damaged as a result of “Superstorm Sandy”, or for any other breach of the terms of any such mortgage obligation, whether under a power of sale, under a judgment entered upon warrant of attorney to confess judgment contained therein, or otherwise, shall be valid if made during the 36-month period next following the enactment of P.L. , c. (pending before the Legislature as this bill) unless upon an order of sale previously granted by the court and a return thereto made and approved by the court or unless the court determines that the failure to comply with the terms of the mortgage obligation has not materially affected by any reason relating to “Superstorm Sandy.”
d. Any person who shall knowingly cause to be made any sale, foreclosure, or seizure of residential real property defined as invalid by subsection c. of this section, or attempts so to do, shall be adjudged a disorderly person and shall be punished by imprisonment not to exceed six months, or by fine not to exceed $1,000, or both.
2. This act shall take effect immediately and shall expire at the end of the 36th month next following enactment.
STATEMENT
This bill would prevent the foreclosure of any mortgage obligation on any real property that was damaged by “Superstorm Sandy,” the major storm that made landfall in New Jersey on October 29, 2012, for a period of 36 months immediately following the enactment of the bill. This 36-month period will give property owners whose homes still bear damage inflicted as the result of “Superstorm Sandy” some financial breathing room as they try to rebuild their homes and their lives.