This bill aims to support veterans in New Jersey by allowing them to participate in sheriff auctions for residential properties with a reduced deposit requirement. Specifically, it permits veteran bidders to provide a deposit of only five percent of the purchase price immediately after the foreclosure sale, provided they commit to occupying the property for a minimum of two years. The bill introduces a new definition of "Veteran," encompassing any resident honorably discharged from active service in the U.S. Armed Forces or the American Merchant Marine during World War II, as recognized by the Department of Defense. Additionally, it amends existing legal language regarding deposit requirements, specifying that the standard deposit of 20 percent can be reduced to five percent for veterans, thereby easing their financial burden in securing homes through foreclosure auctions.

Furthermore, the bill establishes a right of first refusal for foreclosed defendants, their next of kin, and tenants to purchase the property at the original upset price, provided they can secure financing. It allows successful bidders to pay a 3.5 percent deposit at the conclusion of the sale and outlines the responsibilities of the sheriff's office in executing deeds. The legislation also includes penalties for bidders who fail to occupy the purchased property as their primary residence for a minimum of 84 months and sets regulations for nonprofit community development corporations to assist in purchasing foreclosed properties. Overall, the bill seeks to enhance affordable housing opportunities while promoting homeownership for veterans and ensuring a fair and transparent sale process.

Statutes affected:
Introduced: 2A:50-55, 2A:50-64