Bill Text: NJ A4154 | 2018-2019 | Regular Session | Introduced
Bill Title: Requires residential mortgage lenders to accept deed in lieu of foreclosure under certain circumstances.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-06-11 - Introduced, Referred to Assembly Education Committee [A4154 Detail]
Download: New_Jersey-2018-A4154-Introduced.html
Sponsored by:
Assemblywoman PAMELA R. LAMPITT
District 6 (Burlington and Camden)
SYNOPSIS
Requires residential mortgage lenders to accept deed in lieu of foreclosure under certain circumstances.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning residential mortgage foreclosures 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. a. If a lender's action to foreclose a residential mortgage is uncontested as defined in R.4:64-1(c) of the Rules Governing the Courts of the State of New Jersey, and the debtor has not exercised the right to cure the default and reinstate the mortgage, pursuant to section 5 of P.L.1995, c.244 (C.2A:50-57) or any other law or legal right or remedy, the lender shall complete the foreclosure action by applying for and obtaining entry of final judgment within one year from the date of the filing of the summons and complaint that commences the foreclosure action.
b. If the lender fails to complete the foreclosure action and have final judgment entered pursuant to subsection a. of this section, the lender shall be required to accept, if offered by the debtor, a deed in lieu of foreclosure of the property which is the subject of the mortgage. Upon acceptance of the deed in lieu of foreclosure:
(1) the debt which was secured by the foreclosed mortgage shall be deemed satisfied and the lender shall not be permitted to institute any further action for the collection of the debt; and
(2) the lender shall assume responsibility for payment of any and all property taxes on the property.
2. This act shall take effect immediately and shall apply to any residential mortgage foreclosure action commenced on or after the effective date.
STATEMENT
This bill, which supplements the "Fair Foreclosure Act," provides that if a lender's action to foreclose a residential mortgage is uncontested as defined in R.4:64-1(c) of the Rules Governing the Courts of the State of New Jersey, and the debtor has not exercised the right to cure the default and reinstate the mortgage, pursuant to section 5 of P.L.1995, c.244 (C.2A:50-57) or any other law or legal right or remedy, the lender shall complete the foreclosure action by applying for and obtaining entry of final judgment within one year from the date of the filing of the summons and complaint that commences the foreclosure action.
The bill further provides that if the lender fails to complete the foreclosure action and have final judgment entered pursuant to the bill's provisions, the lender shall be required to accept, if offered by the debtor, a deed in lieu of foreclosure of the property which is the subject of the mortgage. Upon acceptance of the deed in lieu of foreclosure:
(1) the debt which was secured by the foreclosed mortgage shall be deemed satisfied and the lender shall not be permitted to institute any further action for the collection of the debt; and
(2) the lender shall assume responsibility for payment of any and all property taxes on the property.
The bill takes effect immediately upon enactment and applies to any foreclosure action commenced on or after the effective date.
