New Jersey passed a bill amending foreclosure provisions with respect to residential properties (1-to 4-family property used as a primary residence). Under the bill, a lender or servicer of residential property must provide an estimate of the upset price for the sale of the property to the sheriff prior to the foreclosure sale. Upon receipt of the upset price, the sheriff must provide notice of the upset price (including posting the upset price on the sheriff’s website and on any other medium used to provide notice of the foreclosure sale). The bill also provides a right of 1st refusal to purchase foreclosed residential property to the borrower, the borrower’s next of kin or any tenant of the property if the borrower is an individual and financing is secured to purchase the foreclosed property. With respect to the borrower or the borrower’s next of kin, the right of 1st refusal only applies if the foreclosure is due circumstances outside of the borrower’s control (e.g., financial hardship, physical or mental illness, divorce, death of borrower or borrower’s spouse/dependent, etc…). In addition, the bill requires a lender or servicer to disclose whether foreclosed residential property is vacant, tenant-occupied, or owner-occupied, modifies mailing requirements for the Notice of Sale involving residential property, amends requirements with respect to the biding and purchase of residential property at the foreclosure sale, and adds a right of 2nd refusal to purchase foreclosed residential property for community development corporations (if certain conditions are met). The bill went into effect January 12, 2024.
Click to view the New Jersey AB 5664: https://www.tenaco.com/wp-content/uploads/2024/01/NJ-AB-5664-01-12-24-1.pdf
