Earlier in the year, the governor signed into law the New Jersey Foreclosure Fairness Act, which provides several protections for homeowners and renters. For example, creditors cannot evict renters of residential property solely because creditors are foreclosing on the property where the residents live. As long as the tenants continue to pay rent and act responsibly, they can stay in their home. The new owner of the property must provide contact information for the tenants regarding to whom the rent is now due. New landowners must provide any notices in both English and Spanish.
A state official has described New Jersey as offering more protections to tenants of foreclosed properties than any other state. Nevertheless, tenants and homeowners must know their rights in order to enforce them. Creditors can pressure them into making unwise decisions. Skilled and experienced in all aspects of bankruptcy and foreclosure law, a Morris County bankruptcy lawyer is available to explain your rights under New Jersey’s foreclosure protection laws.
New Jersey Foreclosure Fairness Act Protections
- Creditors must give debtors 30 days’ notice before beginning a foreclosure action. The notice must plainly state that there is financial assistance available through state, federal, and non-profit groups that may be able to assist the homeowner in avoiding a foreclosure. A Morris County bankruptcy attorney can provide advice to you for which programs are ideally suited to you.
- New Jersey has a foreclosure mediation program that the state court administers. This program aims to avoid having creditors foreclose on debtors’ homes by creating an affordable mortgage payment schedule for homeowners.
- Homeowners can always contact the New Jersey Department of the Public Advocate. This Department regularly defends tenants who have faced threats of eviction or the shutoff of their utilities. They contact lawyers and creditors who engage in misleading practices to warn them of their unlawful actions.
- Certain New Jersey homeowners are eligible for participation in the Mortgage Assistance Program. This program provides homeowners funding to get their mortgages current or to refinance their mortgages.
- New Jersey provides many free resources that homeowners can find via a basic internet search. There are housing counselors and court-trained mediators who can initially advise you at no charge. If you are concerned about a home foreclosure, contact one of these agencies as soon as possible to learn more about your rights.
Contact a Morris County bankruptcy attorney at Ast & Schmidt, PC if you are a tenant or homeowner facing eviction problems.