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  • NJ A4505
  • Provides foreclosure stay of proceedings for certain residential borrowers and exempts certain lenders that offer sustainable mortgage modifications.
Introduced
(1/19/2017)
In Committee
(1/19/2017)
Crossed OverPassedSignedDead/Failed/Vetoed
2016-2017 Regular Session
This bill establishes a six-month stay of proceedings for foreclosure proceedings related to "underwater" residential mortgage loans. The court would be directed to grant a stay of proceedings if 1) both the lender and borrower consent, or 2) the court determines that negotiations during the stay of proceedings could render the foreclosure action moot. If, however, the creditor offers the borrower a sustainable mortgage modification, the borrower would not be eligible for a stay of proceedings. New Jersey is facing an unprecedented emergency due to the increasing numbers of residential mortgage foreclosures in the State. The growing number of homeowners whose mortgage principal exceeds their home's value, a situation commonly referred to as being "underwater," has exacerbated this problem. A vicious cycle is created in which more foreclosures adversely affect property values, thereby pushing more mortgages underwater. This bill attempts to avoid more foreclosures and the deleterious effects of foreclosures on neighborhoods and the economy by modifying the foreclosure process through a temporary stay of proceedings to provide additional time for underwater borrowers to work out loan modifications. The bill also provides that if the borrower ceases to occupy the property at any time during the stay of proceedings, or if the borrower affirmatively advises the creditor, in writing, that the borrower will not participate in the Judiciary's Foreclosure Mediation Program or another form of mediation or settlement discussion, the creditor must notify the court, and upon notification, and approval of the court, the stay of proceedings would be terminated.
Financial Institutions and Insurance
Assembly Financial Institutions and Insurance Hearing (19:00 5/11/2017 )  (on 5/11/2017)
 
 

Date Chamber Action Description
5/11/2017 Assembly Financial Institutions and Insurance Hearing (19:00 5/11/2017 )
1/19/2017 A Introduced, Referred to Assembly Financial Institutions and Insurance Committee
Date Motion Yea Nay Other
None specified