(TRENTON)
– Legislation Assembly Democrats Carmelo Garcia, Craig Coughlin, Speaker Pro
Tempore Jerry Green, John McKeon, Bob Andrzejczak and Angel Fuentes sponsored to
provide an expedited process for foreclosing vacant and abandoned residential
properties in uncontested actions was released Thursday by an Assembly
panel.
The
bill (A-3793) would provide that, notwithstanding any other law or rule to the
contrary, if a residential mortgage lenders action to foreclose a mortgage on
real property is uncontested, and the property is vacant and abandoned, the
lender may file a Motion for Expedited Judgment and Sale. The motion would be
accompanied by an affidavit from a person having personal knowledge of the
contents and would plead the specific facts to establish that the action is
uncontested and that the property is vacant and
abandoned.
"We've
seen vacant properties throughout New Jersey destabilize neighborhoods and hurt
property values," said Garcia (D-Hudson). "I view this as common sense - if a
property is vacant and abandoned in an uncontested situation, then let's speed
the process by which somebody will become responsible for
it."
"New
Jersey's continued foreclosure crisis is hurting neighborhood and promoting
blight," said Coughlin (D-Middlesex). "Providing an expedited process such as
this in uncontested cases is a smarter approach to protecting our
communities."
"We
need to do more to combat the scourge of vacant properties," said Green
(D-Union/Middlesex/Somerset). "Allowing vacant properties to sit there causing
problems when the case is uncontested just makes no sense at
all."
"Making
someone responsible for these properties sooner rather than later is the
responsible thing to do," said McKeon (D-Essex/Morris). "It serves no one to
have vacant properties spreading blight and destroying property values when a
simple step such as this can go a long way toward improving the
situation."
"Government
bureaucracy can be frustrating in all circumstances, but especially if your
neighborhood is being negatively impacted by a vacant property that could
otherwise be maintained," said Andrzejczak (D-Atlantic/Cape May/Cumberland).
"Quite simply, this bill is common sense."
"Too
many neighborhoods have suffered due to needless red tape," said Fuentes
(D-Camden/Gloucester). "This bill does the right thing for all
involved."
Under
the bill, 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 would: (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 $1,000 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 would be able to present a defense in
response to the Motion for Expedited Judgment and Sale. The bill would also
require that the defense would need to 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 would
also require 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 would further provide that nothing in the bill would be construed to affect
the rights of a tenant to possession of a leasehold interest under the
Anti-Eviction Act, the “New Jersey Foreclosure Fairness Act, or any other
applicable law.
The
bill was released by the Assembly Financial Institutions and Insurance Committee
chaired by Coughlin.
