Sponsored by:
Senator ANDREW ZWICKER
District 16 (Hunterdon, Mercer, Middlesex and Somerset)
SYNOPSIS
Establishes Community Wealth Preservation Program; expands access for certain buyers to purchase property from sheriffs sales.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning sheriffs sales 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 conduct a sale within 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 notice for the sale of a foreclosed upon residential property be mailed to the primary address of the foreclosed upon defendant and to the address of the foreclosed upon residential property. Notice of the sale shall be mailed in an envelope that plainly states on its exterior that the envelope is a notice for the sale of the foreclosed upon residential property.
(5) (a) That notice of the final upset price for the sale of a foreclosed upon residential property be provided at least four weeks prior to the sheriffs sale and posted on the Internet website of the sheriffs office and on any other medium used to provide notice of the sheriffs sale. The final upset price provided on the day of the sheriffs sale shall not differ from the final upset price provided in the notice; and
(b) Prior to providing the final upset price to the sheriffs office pursuant to subparagraph (a) of this paragraph, the foreclosing plaintiff or agent of the foreclosing plaintiff shall be prohibited from contacting the foreclosed upon defendant, next of kin of the foreclosed upon defendant, or a nonprofit community development corporation to inquire whether the foreclosed upon defendant, next of kin, or nonprofit community development corporation intends to participate in the sheriffs sale for the foreclosed upon property or exercise the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill).
(6) Prior to the sale of residential property, the foreclosing plaintiff shall disclose, if known, whether the property is vacant, tenant-occupied, or owner-occupied. If the property is vacant, the foreclosing plaintiff shall provide the successful bidder access to the property if the foreclosing plaintiff has such access and may condition access by the successful bidder on being accompanied by a representative of the foreclosing plaintiff.
(7) (a) Except as otherwise provided in subparagraphs (b) and (c) of this paragraph, 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.
(b) In the case of residential property in which the successful bidder is the foreclosed upon defendant, next of kin, tenant, nonprofit community development corporation, or a bidder who 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 e. of this section shall pay a 3.5 percent deposit with the rest of the balance due within 90 business days by cash, certified or cashiers check, or by wire transfer, made payable to the sheriff of the county in which the sale is conducted or to the Special Master, if the sheriff cannot comply with the provisions of subparagraph (a) of paragraph (3) of this subsection, immediately upon the conclusion of the foreclosure sale.
(c) If the successful bidder cannot satisfy [this] the requirement of this paragraph that is applicable to the bidder, or the applicable requirement of this paragraph respectively, 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)] (8) 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)] (9) That each sheriff's office shall use, and the plaintiff's attorney shall prepare and submit to the sheriff's 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:
...................................................................
...................................................................
...................................................................
and the following named parties are the DEFENDANTS:
.........