Bill Text: NJ S744 | 2018-2019 | Regular Session | Introduced
Bill Title: Provides procedure to cancel mortgage of record by affidavit of entitled person under certain circumstances.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-01-09 - Introduced in the Senate, Referred to Senate Commerce Committee [S744 Detail]
Download: New_Jersey-2018-S744-Introduced.html
STATE OF NEW JERSEY
218th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2018 SESSION
Sponsored by:
Senator PATRICK J. DIEGNAN, JR.
District 18 (Middlesex)
SYNOPSIS
Provides procedure to cancel mortgage of record by affidavit of entitled person under certain circumstances.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning the cancellation of mortgages of record and amending and supplementing P.L.1999, c.40.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.1999, c.40 (C.46:18-11.5) is amended to read as follows:
1. As used in this act:
"Entitled person" means a person liable for payment or performance of the obligation secured by the real property described in a mortgage, the landowner, or any person with a recorded interest in the mortgage.
"Mortgage" means a residential mortgage, security interest or the like, in which the security is a residential property such as a house, real property or condominium, which is occupied, or is to be occupied, by the debtor, who is a natural person, or a member of the debtor's immediate family, as that person's residence. The provisions of sections 2 and 3 of P.L.1999, c.40 (C.46:18-11.6 and C.46:18-11.7) and section 2 of P.L. ,c. (C. )(pending before the Legislature as this bill) shall apply to all residential mortgages wherever made, which have as their security a residence in the State of New Jersey, provided that the real property which is the subject of the mortgage shall not have more than four dwelling units, one of which shall be, or is planned to be, occupied by the debtor or a member of the debtor's immediate family as the debtor's or family member's residence at the time the loan is originated.
"Pay-off letter" means a written document prepared by the holder or servicer of the mortgage being paid, which is dated not more than 60 days prior to the date the mortgage is paid, and which contains a statement of all the sums due to satisfy the mortgage debt, including, but not limited to, interest accrued to the date the statement is prepared and a means of calculating per diem interest accruing thereafter.
"Mortgagee" means the holder of the mortgage reflected in the latest record filed with the county recording office. If the entity that is recorded as the holder of the mortgage is no longer in existence, "mortgagee" shall mean the entity that was authorized to receive the latest payment on the mortgage.
(cf: P.L.2015, c.225, s.4)
2. (New section) a. An entitled person who has caused payment in full to be made of a mortgage duly recorded or registered in this State, which mortgage has not been timely canceled in accordance with section 1 of P.L.1975, c.137 (C.46:18-11.2), may submit for recording a discharge or satisfaction-piece, provided the discharge or satisfaction-piece is accompanied by an affidavit setting forth the circumstances of payment and that the later of: (1) at least 31 years since the date of the mortgage; or (2) at least one year since the maturity date of the mortgage, has elapsed. The discharge or satisfaction-piece and affidavit shall be accepted for recording by the county clerk or register of deeds and mortgages, so long as the affidavit is substantially in the form set forth below:
AFFIDAVIT OF PAYMENT TO DISCHARGE MORTGAGE
PURSUANT TO SECTION 2 OF P.L. , c.
(C. ) (pending before the Legislature as this bill)
State of New Jersey
County of ________, ss. :
The undersigned entitled person, being duly sworn upon the undersigned's oath, avers as follows:
1. On or about ______________, ________, I caused to be sent to ___________________, located at _______________________ (the address designated for receipt of payment by the mortgagee), the final payment in full satisfaction of all payment terms of a certain mortgage dated _______, _____, in the face amount of $___________, between _______________ (mortgagor) and __________________ (mortgagee), which mortgage was recorded on ________, ______ in the Office of the County Clerk/Register of Deeds of the County of ______________ in Mortgage Book _______, page ______ (and which mortgage was subsequently assigned to __________ by assignment of mortgage dated _________, _________, in Assignment of Mortgage Book ____, Page ______).
2. As to the mortgage described in paragraph 1 of this affidavit, the later of: (1) at least 31 years since the date of the mortgage; or (2) at least one year since the maturity date of the mortgage, has elapsed. To the best of my knowledge and belief, no letter or other written communication has been received from _______________ (mortgagee), to the effect that it denies or disputes that the mortgage has been paid in full as of the date of this affidavit and ought to be discharged of record.
3. On _______, _____, at least 31 days prior to the date of this affidavit, I caused a notice to be sent to ______________, located at ______________ (the address designated for receipt of payment in the pay-off letter, or if no address is designated, the address given on the letterhead of the pay-off letter), by registered or certified mail, return receipt requested, of my intention to cause the mortgage to be discharged by affidavit pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), if the mortgage remains uncancelled 31 days after the notice is received. I made all reasonable efforts and exercised due diligence to identify or locate the correct mortgagee or servicer to send them this notice of my intention to cause the mortgage to be discharged by affidavit. A copy of the notice to the mortgagee is attached to this affidavit.
4. At least 31 days have now elapsed since the notice described in paragraph 3 of this affidavit was received. To the best of my knowledge and belief, no letter or other written communication has been received from _______________, to the effect that it denies or disputes that the mortgage has been paid in full and ought to be discharged of record at this time.
5. Wherefore, the undersigned directs the county clerk or register of deeds of the County of ____________ to cause to be recorded the discharge or satisfaction-piece accompanying this affidavit, and further directs the county clerk or register of deeds to cause a marginal notation of discharge to be made upon the record of the mortgage described in paragraph 1 of this affidavit.
__________________________
Sworn and subscribed before me
this ______ day of _______, ____.
b. Upon payment of the appropriate fees therefor, the county clerk or register of deeds and mortgages shall cause the marginal notation "Discharge recorded in Book ______, Page _____" to be made upon the record of any mortgage which is specifically described in the affidavit.
c. An entitled person who knowingly submits a false affidavit under this section shall be guilty of a crime of the fourth degree.
3. This act shall take effect on the 90th day following enactment.
STATEMENT
This bill provides an alternative to the current methods of canceling residential mortgages of record upon satisfaction, in order to provide relief to an entitled person, without requiring the expense of a court proceeding. An entitled person is defined to mean a person liable for payment or performance of the obligation secured by the real property described in a mortgage, the landowner, or any person with a recorded interest in the property.
The bill allows an entitled person to use this alternative method in situations in which a mortgage has been paid in full, the mortgagee has not submitted the mortgage to be canceled of record as required pursuant to section 1 of P.L.1975, c.137 (C.46:18-11.2) and the later of: (1) at least 31 years since the date of the mortgage; or (2) at least one year since the maturity date of the mortgage, has elapsed. Under these circumstances, the bill allows an entitled person to submit for recording a discharge or satisfaction-piece, provided that the discharge or satisfaction-piece is accompanied by an affidavit setting forth these circumstances of payment. The county clerk or register of deeds and mortgages must accept the discharge or satisfaction-piece and affidavit for recording provided that the affidavit is substantially in the form set forth in the bill.
The bill requires an entitled person to state in the affidavit the time of final payment of the mortgage and that the later of at least 31 years since the date of the mortgage, or at least one year since the maturity date of the mortgage, has elapsed. An entitled person is also required to state that the entitled person sent, by certified mail, a notice to the address designated for receipt of payment that the entitled person intended to discharge the mortgage by affidavit and that 31 days have elapsed since the date the notice was received, and that an entitled person made all reasonable efforts and exercised due diligence to identify and locate the correct mortgagee or servicer to send them the notice of intention to discharge, and that the entitled person has attached to the affidavit a copy of the notice. Finally, an entitled person must state that no written communication has been received from the mortgagee to dispute that the mortgage has been paid in full.
The bill also provides that an entitled person who knowingly submits a false affidavit is guilty of a crime of the fourth degree.
