Bill Text: NJ A5142 | 2020-2021 | Regular Session | Introduced


Bill Title: Protects homeowner in foreclosure from excessively low intervening offer.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced) 2021-01-13 - Reported out of Assembly Committee, 2nd Reading [A5142 Detail]

Download: New_Jersey-2020-A5142-Introduced.html

ASSEMBLY, No. 5142

STATE OF NEW JERSEY

219th LEGISLATURE

 

INTRODUCED DECEMBER 14, 2020

 


 

Sponsored by:

Assemblyman  BENJIE E. WIMBERLY

District 35 (Bergen and Passaic)

 

 

 

 

SYNOPSIS

     Protects homeowner in foreclosure from excessively low intervening offer.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act protecting a homeowner in foreclosure from excessively low intervening offer and amending P.L.1954, c.186.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    Section 1 of P.L.1954, c.186 (C.54:5-89.1) is amended to read as follows:

     1.  In any action to foreclose the right of redemption in any property sold for  unpaid taxes or other municipal liens, all persons claiming an interest in or an encumbrance or lien upon such property, by or through any conveyance, mortgage, assignment, lien or any instrument which, by any provision of law, could be recorded, registered, entered or filed in any public office in this State, and which shall not be so recorded, registered, entered or filed at the time of the filing of the complaint in such action shall be bound by the  proceedings in the action so far as such property is concerned, in the same manner as if [he] the person had been made a party to and appeared in such action, and the judgment therein had been made against [him] the person as one of the defendants therein; but such person, upon causing such conveyance, mortgage, assignment, lien,  claim or other instrument to be recorded, registered, entered or filed as  provided by law, may apply to be made a party to such action.  No person,  however, shall be admitted as a party to such action, nor shall [he] the person have the right to redeem the lands from the tax sale whenever it shall appear that [he] the person has acquired such interest in the lands for [a nominal consideration] less than fair market value after the filing of the complaint, except where such transferee is related by blood or  marriage to, or who, because of other close or personal relationship with the  transferor, would in normal course be a party to an instrument for little or no consideration, or where such party acquired his interest at a judicial sale.

(cf: P.L.1967, c.149, s.1)

 

     2.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill protects a homeowner in foreclosure from an excessively low intervening offer.

     This bill amends P.L.1954, c.186 (C.54:5-89.1) to prohibit a person who has acquired an interest in a parcel of real property for
less than the fair market value of that property, after the filing of the foreclosure complaint, from being admitted as a party to the foreclosure action and also from exercising the right of redemption.  Under current law, an individual is prohibited from exercising the right of redemption after acquiring an interest in land for a nominal consideration after the filing of the foreclosure complaint.

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