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Making the Foreclosure Process More Efficient

foreclosuresNew Jersey's Senate Community and Urban Affairs Committee has passed bipartisan legislation consisting of a package of nine bills that are aimed at streamlining pending foreclosure cases in the state.

Based on a May 2017 report by Chief Justice Stuart Rabner and Special Committee on Residential Foreclosures this legislation is likely to make the foreclosure process in New Jersey, "more just and efficient," according to Sen. Steven Oroho, who is one of the sponsors of the bills.

“This will give families the opportunity to start fresh while helping towns reduce the number of vacant houses that create public safety issues in our neighborhoods,” Oroho said in a statement.

While bill S-3411 which requires that notice with the intention to foreclose would note be sent more than 180 days in advance of taking action, S-3412 would require the Department of Community Affairs (DCA) to create a database with an interactive map which would detail the extent of foreclosed properties in New Jersey.

The other bills related to this legislation range from amending the summary action foreclosure process under the "Fair Foreclosure Act" to clarify the method of fast-track sales of foreclosed properties to requiring mortgage servicers to obtain a license from the Commissioner of Banking and Insurance for each main office and each branch office where business is conducted.

The legislation also includes bills that would revise the statute of limitations in residential mortgage foreclosure actions from 20 years to six years from the date on which the debtor defaulted as well as a bill that would clarify that the provisions of the “New Jersey Residential Mortgage Lending Act,” also apply to certain out-of-state persons and entities involved in residential mortgage lending in the State.

“While this issue is not new, the comprehensive approach outlined in this bipartisan bill package is. It seeks to build upon the continued reduction in pending foreclosure cases and shorten the timeline to adjudicate these cases. This is a reflection of the work undertaken by the executive, judicial and legislative branches of government,” said Sen. Troy Singleton, one of the co-sponsors of this legislation.

Click here to read the summary of all the bills introduced under this legislation.

About Author: Radhika Ojha

Radhika Ojha is an independent writer and copy-editor, and a reporter for DS News. She is a graduate of the University of Pune, India, where she received her B.A. in Commerce with a concentration in Accounting and Marketing and an M.A. in Mass Communication. Upon completion of her masters degree, Ojha worked at a national English daily publication in India (The Indian Express) where she was a staff writer in the cultural and arts features section. Ojha, also worked as Principal Correspondent at HT Media Ltd and at Honeywell as an executive in corporate communications. She and her husband currently reside in Houston, Texas.

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