ASSEMBLY, No. 3767

STATE OF NEW JERSEY

213th LEGISLATURE

 

INTRODUCED FEBRUARY 9, 2009

 


 

Sponsored by:

Assemblyman PATRICK J. DIEGNAN, JR.

District 18 (Middlesex)

Assemblywoman LINDA STENDER

District 22 (Middlesex, Somerset and Union)

Assemblyman JOSEPH VAS

District 19 (Middlesex)

Assemblywoman MILA M. JASEY

District 27 (Essex)

 

Co-Sponsored by:

Assemblywomen Pou, Voss, Assemblymen Schaer, Conners, Conaway, Assemblywoman Tucker, Assemblymen Caputo, Scalera, Assemblywoman Lampitt, Assemblyman Ramos, Assemblywomen Evans, Greenstein and Rodriguez

 

 

 

 

SYNOPSIS

     Requires residential mortgage lenders to provide debtors with certain information about curing default prior to initiation of mortgage foreclosure action.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning residential mortgage foreclosures and supplementing P.L.1995, c.244 (C.2A:50-53 et seq.)

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    At least 60 days prior to filing a notice of intention to foreclose pursuant to section 4 of P.L.1995, c.244, (C.2A:50-56), and as a precondition to the right to file the notice of intention, a residential mortgage lender shall send the debtor, by registered or certified mail, return receipt requested, at the debtor’s last known address, and if different, to the address of the property which is the subject of the residential mortgage, a written notice which shall clearly and conspicuously state in a manner calculated to make the debtor aware of the situation:

     a.     The nature of any default or failure to perform any obligation of the mortgage that may provide the mortgage lender with the right to send to the debtor a notice of intention to foreclose pursuant to section 4 of P.L.1995, c.244 (2A:50-56);

     b.    The possible availability of financial assistance for curing a default from programs operated by the State or federal government or nonprofit organizations, if any, as identified by the Commissioner of Banking and Insurance.  This requirement shall be satisfied by attaching a list of programs, referencing any available phone numbers and websites, promulgated by the commissioner; and

     c.     The possible availability of any programs within the internal operations of the residential mortgage lender to refinance the mortgage or otherwise restructure the terms of the mortgage.

     The notice is deemed to be have been effectuated on the date the notice is delivered in person or mailed to the debtor.

 

     2.    This act shall take effect on the 90th day following enactment.

 

 

STATEMENT

 

     This bill supplements the “Fair Foreclosure Act” to require residential mortgage lenders to provide mortgage debtors with information about available programs to help cure defaults, prior to the initiation of a mortgage foreclosure proceeding.

     The bill requires that at least 60 days prior to filing a notice of intention to foreclose pursuant to section 4 of P.L.1995, c.244, (C.2A:50-56), and as a precondition to the right to file the notice of intention, a residential mortgage lender shall send the debtor, by registered or certified mail, return receipt requested, at the debtor’s last known address, and if different, to the address of the property which is the subject of the residential mortgage, a written notice which shall clearly and conspicuously state in a manner calculated to make the debtor aware of the situation:

     (1)   The nature and extent of any default or failure to perform any obligation of the mortgage that may provide the mortgage lender with the right to send to the debtor a notice of intention to foreclose pursuant to section 4 of P.L.1995, c.244 (2A:50-58);

     (2)   The possible availability of financial assistance for curing a default from programs operated by the State or federal government or nonprofit organizations, if any, as identified by the Commissioner of Banking and Insurance.  This requirement shall be satisfied by attaching a list of programs, referencing any available phone numbers and websites, promulgated by the commissioner; and

     (3)   The possible availability of any programs within the internal operations of the residential mortgage lender to refinance the mortgage or otherwise restructure the terms of the mortgage.