SENATE, No. 749






Sponsored by:


District 6 (Burlington and Camden)


Co-Sponsored by:

Senator Stack






†††† Extends post-military service protection against mortgage foreclosure.



†††† Introduced Pending Technical Review by Legislative Counsel.


An Act extending protections from mortgage foreclosure afforded to persons in military service and amending P.L.1979, c.317.


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


†††† 1.††† Section 16 of P.L.1979, c.317 (C.38:23C-16) is amended to read as follows:

†††† 16.† a. The provisions of this section shall apply only to obligations secured by mortgage, trust deed, or other security in the nature of a mortgage upon real or personal property owned by a person in military service at the commencement of the period of his military service and still so owned by him which obligations originated prior to such person's period of military service.

†††† b.††† In any proceeding commenced in any court during the period of military service to enforce such obligation arising out of nonpayment of any sum thereunder due or out of any other breach of the terms thereof occurring prior to or during the period of such service the court may, after hearing, in its discretion, on its own motion, and shall, except as hereinafter provided in this act, on application to it by such person in military service or some person on his behalf, unless in the opinion of the court the ability of the defendant to comply with the terms of the obligation is not materially affected† by reason of his military service:

†††† (1)†† Stay the proceedings as provided in this act; or

†††† (2)†† Make such other disposition of the case as may be equitable to conserve† the interest of all parties.

†††† c.†††† No sale, foreclosure, or seizure of property for nonpayment of any sum due under any such obligation, or for any other breach of the terms thereof, whether under a power of sale, under a judgment entered upon warrant of attorney to confess judgment contained therein, or otherwise, shall be valid if made during the period of military service, or within [3 months thereafter] one year after release or discharge from military service, unless upon an order of sale previously granted by the court and a return thereto made and approved by the court.

†††† d.††† Any person who shall knowingly cause to be made any sale, foreclosure or seizure of property defined as invalid by paragraph c. hereof, or attempts so to do, shall be adjudged a disorderly person and shall be punished by imprisonment not to exceed 6 months, or by fine not to exceed $1,000.00, or both.

(cf: P.L.1979, c.317, s.16)


†††† 2.††† This act shall take effect January 1, 2015.



†††† This bill would extend the period of protection against the sale, foreclosure, or seizure of property currently provided in State law for persons who are serving in the United States military.

†††† Currently, State law protects a person in military service from a sale, foreclosure, or seizure of the personís property during the personís period of military service and for three months thereafter, unless an order of sale was previously granted and approved by the court.† This bill would extend the post-service period of protection from mortgage foreclosure from three months to one year after release or discharge from military service, effective on January 1, 2015.

†††† A provision of federal law, 50 U.S.C. Appx. s.533, currently provides military service members with comparable protection against mortgage foreclosure for a full year after the period of the service member's military service.† However, the federal law is scheduled to sunset on January 1, 2015, at which time an earlier provision of law, which provided service members a 90-day post-service period of protection from mortgage foreclosure, will be revived.