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Bill > A4412

NJ A4412

NJ A4412
Creates "Community Wealth Preservation Program"; expands access for certain buyers to purchase property from sheriffs's sales.*

summary

Introduced
09/13/2018
In Committee
06/17/2019
Crossed Over
Passed
Dead
01/08/2020

Introduced Session

2018-2019 Regular Session

Bill Summary

This bill revises sheriff's procedures for the sale of residential foreclosure properties. The bill reduces the deposit required at the time of a sheriff's sale for residential property from 20 percent to 3.5 percent. Current law provides that all bidders on properties for sale at sheriff's sales are required to deposit 20 percent of the purchase price of the property. Under the bill, the successful bidder on residential property will have up to 90 days to complete the sale, with no interest accruing on the balance of the sale for 60 days following the sale. The bill provides the sheriff require the foreclosing plaintiff to disclose whether the property is vacant, tenant-occupied, or owner-occupied. Under the bill, a bidder may purchase property in a sheriff's sale by way of financing if the bidder provides documentation that the bidder has been pre-approved by an appropriate financial institution for financing the property. A bidder may only use the financing option if the property will be the bidder's primary residence. If a successful bidder finances the property and does not use the property as a primary residence, the bidder will be subject to a fine of a minimum of $100,000. However, there are exceptions to the penalties if the bidder must vacate the property due to necessity, including but not limited to, military deployment. Finally, to be a successful bidder on a residential property the bidder, who is not the plaintiff, who intends to occupy the property, and finance the purchase of the property, to be a successful bidder, shall have received eight hours of training provided by the United States Department of Housing and Urban Development (HUD), and shall present certification of completion of that training at the time of purchase. It is the sponsor's hope that this bill will assist individuals seeking to hold stake in a community through homeownership.

AI Summary

This bill creates the "Community Wealth Preservation Program" to expand access for certain buyers to purchase property from sheriff's sales. The key provisions include: 1. Reducing the deposit required at the time of a sheriff's sale for residential property from 20% to 3.5%. 2. Allowing successful bidders on residential property up to 90 days to complete the sale, with no interest accruing for the first 60 days. 3. Requiring the foreclosing plaintiff to disclose whether the property is vacant, tenant-occupied, or owner-occupied prior to the sale. 4. Allowing bidders to purchase residential property by financing, if they provide documentation of pre-approval from an approved lender and agree to occupy the property as their primary residence for at least 72 months. 5. Imposing fines of at least $100,000 (up to $500,000) for successful bidders who do not occupy the property as their primary residence for the required 72-month period, with exceptions for certain hardship situations. 6. Requiring successful bidders who intend to occupy and finance the property to complete 8 hours of homebuyer education and counseling through HUD. The goal of the bill is to assist individuals seeking homeownership and community investment through these modified sheriff's sale procedures.

Committee Categories

Housing and Urban Affairs

Sponsors (9)

Last Action

Reported out of Assembly Comm. with Amendments, 2nd Reading (on 06/17/2019)
(1 Companion Bills)

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