S2679

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.), 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 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. 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 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.

4. 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.

5. 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.

6. This act shall take effect on the 90^th day next following enactment.

STATEMENT

This bill supplements New Jersey’s “Fair Foreclosure Act” P.L.1995, c.244 (C.2A:50-53 et seq.), by providing an expedited process for mortgage lenders to use to foreclose residential properties and proceed to a public sale in actions that are uncontested.

The bill provides that, notwithstanding any other law or rule to the contrary, if a residential mortgage lender’s action to foreclose a mortgage on real property 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 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:

(1) the specific facts to establish that the action is uncontested; and

(2) 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), with certain information on the availability of housing counseling from HUD certified housing counseling agencies in New Jersey.

If the Motion for Expedited Judgment and Sale and affidavit are found to be in compliance with the provisions of the bill, 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: (1) enter final judgment in foreclosure; (2) 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 the “Fair Foreclosure Act”; and (3) order payment by the lender of certain amounts as a fee for costs associated with the use of the process for expedited judgment and sale of the property as provided for in this bill.

In a manner consistent with the Rules Governing the Courts of the State of New Jersey, any debtor or interested party may present a defense in response to the Motion for Expedited Judgment and Sale. The bill also requires that 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 bill also requires the defense to be presented within 90 days of the filing of the service of the notice of intention that commenced the foreclosure action. Finally, 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.

The bill further provides that nothing in the bill 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.