Sponsored by:
Senator JOSEPH P. CRYAN
District 20 (Union)
Senator TROY SINGLETON
District 7 (Burlington)
SYNOPSIS
Enhances homeowner notification of foreclosure mediation program requirements.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning notification of foreclosure mediation and amending P.L.2019, c.64.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 3 of P.L.2019, c.64 (C.2A:50-76) is amended to read as follows:
3. a. A homeowner-borrower shall receive written notice from the residential mortgage lender of the option to participate in the Foreclosure Mediation Program in accordance with the court rules, procedures, and guidelines adopted by the Supreme Court at the time the homeowner-borrower receives a notice of intention to foreclose, pursuant to section 4 of P.L.1995, c.244 (C.2A:50-56). Upon the filing of a mortgage foreclosure complaint against an eligible property, the homeowner-borrower shall again receive written notice of the option to participate in the Foreclosure Mediation Program in accordance with the court rules, procedures, and guidelines adopted by the Supreme Court.
b. The written notice required pursuant to this section shall be available in both English and Spanish, and shall alert the homeowner-borrower that:
(1) pursuant to subsection b. of section 4 of P.L.2019, c.64 (C.2A:50-77), obtaining the assistance of a trained foreclosure prevention and default mitigation counselor is a prerequisite to participation in mediation; and
(2) pursuant to subsection c. of section 4 of P.L.2019, c.64 (C.2A:50-77), the homeowner-borrower is not required to pay any fees in order to participate in mediation.
(cf: P.L.2019, c.64, s.3)
2. This act shall take effect on the first day of the sixth month next following enactment.
STATEMENT
This bill enhances the notification requirements of residential mortgage lenders in association with foreclosure actions.
Under the bill, whenever a residential mortgage lender provides a homeowner with a notice of intention to foreclose, or when the lender files a foreclosure complaint against a mediation-eligible homeowner, the lender is required to provide the homeowner with certain information in relation to the foreclosure mediation program.
Specifically, the information provided by the lender 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 in order to participate in mediation.