Sponsored by:
Senator NIA H. GILL
District 34 (Essex and Passaic)
SYNOPSIS
Creates Community Wealth Preservation Program; expands access for certain buyers to purchase property from sheriffs sales.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the procedures for sheriffs sales, designated as the Community Wealth Preservation Program, and amending and supplementing P.L.1995, c.244, and amending N.J.S.22A:4-8.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 12 of P.L.1995, c.244 (C.2A:50-64) is amended to read as follows:
12. a. With respect to the sale of a mortgaged premises under foreclosure action, each sheriff in this State shall provide for, but not be limited to, the following uniform procedures:
(1) Bidding in the name of the assignee of the foreclosing plaintiff.
(2) That adjournment of the sale of the foreclosed property shall be in accordance with N.J.S.2A:17-36.
(3) (a) The sheriff shall [schedule] conduct a sale [date] within [120] 150 days of the sheriff's receipt of any writ of execution issued by the court in any foreclosure proceeding.
(b) If it becomes apparent that the sheriff cannot comply with the provisions of subparagraph (a) of this paragraph (3), the foreclosing plaintiff may apply to the office for an order appointing a Special Master to hold the foreclosure sale.
(c) Upon the foreclosing plaintiff making such application to the office, the office shall issue the appropriate order appointing a Special Master to hold the foreclosure sale. The office may issue the order to appoint a Special Master to hold foreclosure sales for one or more properties within a vicinage.
(4) [That] Except as otherwise provided in this paragraph with respect to the purchase of residential property for which there is a 84 month occupancy requirement, the successful bidder at the sheriff's sale shall pay a 20 percent deposit in either cash or by a certified or cashier's check, made payable to the sheriff of the county in which the sale is conducted, immediately upon the conclusion of the foreclosure sale. In the case of residential property in which the bidder shall occupy the property as the bidders primary residence for a period of at least 84 months, the successful bidder who has fulfilled the requirements set forth in subsection g. of this section shall pay a 3.5 percent deposit in either cash or by certified or cashiers check, made payable to the sheriff of the county in which the sale is conducted, immediately upon the conclusion of the foreclosure sale. If the successful bidder cannot satisfy this requirement, the bidder shall be in default and the sheriff shall immediately void the sale and proceed further with the resale of the premises without the necessity of adjourning the sale, without renotification of any party to the foreclosure and without the republication of any sales notice. Upon such resale, the defaulting bidder shall be liable to the foreclosing plaintiff for any additional costs incurred by such default including, but not limited to, any difference between the amount bid by the defaulting bidder and the amount generated for the foreclosing plaintiff at the resale. In the event the plaintiff is the successful bidder at the resale, the plaintiff shall provide a credit for the fair market value of the property foreclosed.
(5) It is permissible, upon consent of the sheriff conducting the sheriff's sale, that it shall not be necessary for an attorney or representative of the person who initiated the foreclosure to be present physically at the sheriff's sale to make a bid. A letter containing bidding instructions may be sent to the sheriff in lieu of an appearance.
(6) That each sheriff's office shall use, and the plaintiffs attorney shall prepare and submit to the sheriffs office, a deed which shall be in substantially the following form:
THIS INDENTURE,
made this ..................... (date) day of ..................... (month), ........... (year). Between ................................ (name), Sheriff of the County of ................. (name) in the State of New Jersey, party of the first part and .................................................... (name(s)) party of the second part, witnesseth.
WHEREAS, on the ...................... (date) day of ......................... (month), ....... (year), a certain Writ of Execution was issued out of the Superior Court of New Jersey, Chancery Division- .................... (name) County, Docket No. directed and delivered to the Sheriff of the said County of .................. (name) and which said Writ is in the words or to the effect following that is to say:
THE STATE OF NEW JERSEY to the Sheriff of the County of .................. (name),
Greeting:
WHEREAS, on the ................. (date) day of ............. (month), ............... (year), by a certain judgment made in our Superior Court of New Jersey, in a certain cause therein pending, wherein the PLAINTIFF is:
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and the following named parties are the DEFENDANTS:
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IT WAS ORDERED AND ADJUDGED that certain mortgaged premises, with the appurtenances in the Complaint, and Amendment to Complaint, if any, in the said cause particularly set forth and described, that is to say: The mortgaged premises are described as set forth upon the RIDER ANNEXED HERETO AND MADE A PART HEREOF.
BEING KNOWN AS Tax Lot ........ (number) in Block ......... (number) COMMONLY KNOWN AS (street address) ....................... .
TOGETHER, with all and singular the rights, liberties, privileges, hereditaments and appurtenances thereunto belonging or in anywise appertaining, and the reversion and remainders, rents, issues and profits thereof, and also all the estate, right, title, interest, use, property, claim and demand of the said defendants of, in, to and out of the same, to be sold, to pay and satisfy in the first place unto the plaintiff,
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the sum of $ ......... (amount) being the principal, interest and advances secured by a certain mortgage dated ............... (date, month, year) and given by ........................ (name) together with lawful interest from
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until the same be paid and satisfied and also the costs of the aforesaid plaintiff with int