SENATE, No. 250
STATE OF NEW JERSEY
PRE-FILED FOR INTRODUCTION IN THE 2008 SESSION
Senator JOHN H. ADLER
District 6 (Camden)
Assemblyman JOHN S. WISNIEWSKI
District 19 (Middlesex)
Assemblyman GARY S. SCHAER
District 36 (Bergen, Essex and Passaic)
Assemblywoman L. GRACE SPENCER
District 29 (Essex and Union)
Assemblywoman Greenstein and Assemblyman Diegnan
Provides statute of limitations for residential mortgage foreclosures.
CURRENT VERSION OF TEXT
As reported by the Senate Commerce Committee on May 8, 2008, with amendments.
An Act concerning certain 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. An action to foreclose a residential mortgage shall not be commenced following the earliest of:
a. 1[Five] Six1 years from the date fixed for the making of the last payment or the maturity date set forth in the mortgage or the note, bond, or other obligation 1[executed contemporaneously with] secured by1 the mortgage, whether the date is itself set forth or may be calculated from information contained in the mortgage or note, bond, or other obligation, except that if the date fixed for the making of the last payment or the maturity date has been extended by a 1[recorded] written1 instrument, the action to foreclose shall not be commenced after 1[five] six1 years from the extended date under the terms of the 1[recorded] written1 instrument;
b. 1[Twenty-five] Thirty-six1years from the date of recording of the mortgage, or, if the mortgage is not recorded, 1 361 years from the date of execution, so long as the mortgage itself does not provide for a period of repayment in excess of 1 301 years; or
c. Twenty years from the date on which the debtor defaulted, which default has not been cured, as to any of the obligations or covenants contained in the mortgage or in the note, bond, or other obligation 1[executed contemporaneously with] secured by1 the mortgage, except that if the date to perform any of the obligations or covenants has been extended by a 1[recorded] written1 instrument 1or payment on account has been made1, the action to foreclose shall not be commenced after 20 years from the date on which the default 1or payment on account thereof1 occurred under the terms of the 1[recorded] written1 instrument.
2. This act shall take effect immediately.