Assembly Democratic Bills to Ensure NJ Foreclosure Mediation Notifications & Rehabilitate Foreclosed Properties in the State Clear Committee

(TRENTON) – Two bills aimed at improving resident notification of potential foreclosure and creating a plan for the empty homes which have been foreclosed upon in our communities were advanced by the Assembly Housing Committee on Tuesday.

One measure (A-1049), sponsored by Assembly members Mila Jasey, Annette Quijano and Benjie Wimberly, is known as the “New Jersey Residential Foreclosure Transformation Act.” It would establish the New Jersey Residential Foreclosure Transformation Program under the New Jersey Housing and Mortgage Finance Agency (HMFA) to purchase foreclosed residential properties and dedicating them for occupancy as affordable housing.

The sponsors issued the following statement on the legislation:

          “New Jersey has the highest foreclosure rate in the country, in January 2020 foreclosures increased by 13%. The COVID-19 Pandemic and its effects on our communities and economy will only exacerbate the foreclosure crisis in the state. Many foreclosed residential properties are vacant, undermining the health, safety, and economic vitality of neighborhoods, depressing their property values, and reducing revenues to municipalities. The availability of tens of thousands of foreclosed residential properties presents a unique opportunity for us in New Jersey. Enabling the purchase and dedication, or the rental, of housing units for low-income and moderate-income residents, will put to good use the overabundance of vacant foreclosed residential properties in the state and help families in need.”

The second measure (A-1063) –sponsored by Assemblywomen Mila Jasey and Carol Murphy— would require mortgage lenders to provide information about the foreclosure mediation program to homeowners when they deliver the notice of intention to foreclose and again when the lender files a foreclosure complaint against a mediation eligible homeowner. The information required would alert the homeowner that obtaining the assistance of a trained foreclosure prevention and default mitigation counselor is a prerequisite to participation in mediation.  The notice would also alert the homeowner that they will not be required to pay any fees to participate in mediation.

On the bill, the sponsors said:

“Timely and transparent notification of a homeowner’s right to foreclosure mediation can make a difference in whether a resident can keep and stay in their home. More homeowners need to take advantage of the mediation program. Foreclosure mediation has been proven to reduce the number of foreclosures. It is in our best interest, as we continue to face a housing crisis in this state, to ensure that all qualified homeowners are informed and encouraged to participate in available mediation programs.”

          Both measures will now go to the Speaker for further consideration.