New Jersey Governor Phil Murphy recently signed two foreclosure reform bills into law, designed to shorten the time a house sits vacant so the property’s exterior doesn’t become unsightly and unsafe. These laws are part of a larger package of legislation addressing the foreclosure crisis in New Jersey created to help homeowners keep their homes.
Under the new law that amends the Condo Act in New Jersey, condominiums along with homeowners associations will now have the authority to claim priority lien after six months of delinquent assessments each year, shortened from the previous requirement of six months of delinquent assessments every five years. The second law makes changes to the foreclosure process under the Fair Foreclosure Act, specifically by shortening the period of time that a sheriff’s sale must take place after a foreclosure judgment on a vacant and abandoned property. The CAI New Jersey Legislative Action Committee was instrumental in the passage of these laws that will result in greater financial sustainability for condominiums and homeowners associations impacted by foreclosures.
Responsible homeowners who pay their assessments had to bear the burden of financing the association when neighbors and banks chose to stop paying their assessments. These laws will keep money in the pockets of homeowners who pay their assessments.
“This is a monumental advancement for all of New Jersey’s condominium and homeowners associations. These laws came about due to years of continued involvement by our NJ-LAC along with the effective efforts of our government affairs partner, MBI. Michele Jaker of MBI met regularly with the bills’ sponsors and other stakeholders to make sure our interests were addressed and included in the legislation.”
– George Greatrex, Esq., chair of the NJ-LAC.
Foreclosure reform is a legislative and regulatory priority for the NJ-LAC. Preserving and enhancing priority lien for community associations is a priority for CAI.
Click here for a step-by-step guide for community associations to collect assessments using judicial foreclosure.
Click here for a step-by-step guide for community associations to collect assessments using non-judicial foreclosure.