Sponsored by:
Assemblyman JULIO MARENCO
District 33 (Hudson)
SYNOPSIS
Permits veterans to provide five percent of purchase price in sheriff auction of residential property under certain circumstances.
CURRENT VERSION OF TEXT
As introduced.
An Act permitting veterans to tender five percent of purchase price in sheriff auction of residential property under certain circumstances and supplementing and amending P.L.1995, s.244.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) The Legislature finds and declares that:
a. As of 2023, 338,012 veterans live in New Jersey.
b. Repeated and extended deployments in the conflicts in Iraq and Afghanistan have made it especially difficult for military personnel serving since September 11, 2001 to find housing suited to their unique situations.
c. Veterans have served our country in times of war and peace, sharing a common belief in a cause higher than self.
d. Veterans are valuable members of communities across New Jersey, and their experience serving their country has endowed them with unique and valuable experience.
e. The State and the nation owe much to those who have chosen to serve in the Armed Forces.
f. It is essential to the public good to encourage the development of stable, decent housing for New Jersey's veterans.
2. (New section) For a bidder who is a veteran, a sheriff shall not require a deposit of more than five percent immediately upon the conclusion of the foreclosure sale for a residential property which the veteran bidder commits to occupy for a minimum of two years.
3. Section 3 of P.L.1995, c.244 (C.2A:50-55) is amended to read as follows:
3. As used in this act:
"Deed in lieu of foreclosure" means a voluntary, knowing and uncoerced conveyance by the residential mortgage debtor to the residential mortgage lender of all claim, interest and estate in the property subject to the mortgage. In order for a conveyance to be voluntary, the debtor shall have received notice of, and been fully apprised of the debtor's rights as specified in section 4 of this act. For purposes of this act, "voluntarily surrendered" has the same meaning as "deed in lieu of foreclosure."
"Immediate family" means the debtor, the debtor's spouse, or the mother, father, sister, brother or child of the debtor or debtor's spouse.
"Non-residential mortgage" means a mortgage, security interest or the like which is not a residential mortgage. If a mortgage document includes separate tracts or properties, those portions of the mortgage document covering the non-residential tracts or properties shall be a non-residential mortgage.
"Obligation" means a promissory note, bond or other similar evidence of a duty to pay.
"Office" means the Office of Foreclosure within the Administrative Office of the Courts.
"Residential mortgage" means a 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. This act shall apply to all residential mortgages wherever made, which have as their security such 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 member's residence at the time the loan is originated.
"Residential mortgage debtor" or "debtor" means any person shown on the record of the residential mortgage lender as being obligated to pay the obligation secured by the residential mortgage.
"Residential mortgage lender" or "lender" means any person, corporation, or other entity which makes or holds a residential mortgage, and any person, corporation or other entity to which such residential mortgage is assigned.
"Servicer" means the person, corporation or other entity responsible for servicing a residential mortgage loan, including a residential mortgage lender who makes or holds a loan if the lender also services the loan.
"Servicing" means managing the mortgage loan account on a daily basis, including collecting and crediting periodic loan payments, managing escrow accounts, or enforcing the terms of the mortgage or note.
"Short sale" means the sale of real property in which the lender or servicer agrees to release the lien that is secured by a residential mortgage on the property upon receipt of a lesser amount than is owed on the mortgage.
"Veteran" means any resident of the State who has been honorably discharged or released under honorable circumstances from active service in any branch of the armed forces of the United States, or any honorably discharged member of the American Merchant Marine who served during World War II and is declared by the United States Department of Defense to be eligible for federal veterans' benefits.
(cf: P.L.2017, c.157, s.1)
4. Section 12 of P.L.1995, c.244, s.12 (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