Proposed Foreclosure Legislation
The New Jersey legislature is considering several bills which would effect major changes in New Jersey foreclosure procedures. The "Fair Foreclosure Act" deals with residential foreclosures and would confer greater rights upon homeowners. Pursuant to this bill, mortgage lenders would need to give 30 days notice to the homeowner prior to taking any legal action for possession or before accelerating the loan. Further, the bill provides that a homeowner could cure a default and reinstate the mortgage any time prior to entry of final judgment by paying only the past due amount, the mortgagee's legal fees, and any contractual late fees.
The "Commercial Mortgage Non-Judicial Foreclosure Act" delineates a procedure to be followed which would permit non-judicial foreclosure of commercial mortgages by power of sale. If enacted, it could greatly reduce the time frames for completion of foreclosures of commercial mortgages, a result strongly supported by lenders.
Whether either or both of these proposals will become law is uncertain.