New Jersey passed a bill amending timing and content requirements with respect to the “notice of intention to foreclose” (Notice). Under the bill, a foreclosing lender or servicer must now include both of the following statements in the Notice: a statement regarding the borrower’s right to obtain housing counseling through the foreclosure mediation program; and a statement that the lender or servicer is required to file for the appointment of a receiver in certain circumstances. The bill also requires the Notice be provided to a borrower within 180 days of the date the foreclosure action is commenced. If a foreclosure action is not commenced within 180 days of the date the Notice was provided, a new Notice must be provided. In addition, the bill requires a foreclosing lender or servicer to file an order to show cause to appoint a receiver in the event: the property contains 2-to 5- dwelling units; the borrower (or the borrower’s immediate family) occupies the 1 of the dwelling units; and the property is not maintained and meets the conditions for receivership eligibility established pursuant to the Multifamily Housing Preservation and Receivership Act. The bill becomes effective August 1, 2019.
See New Jersey Legislature website for the full text of the Statutes: https://www.njleg.state.nj.us/2018/Bills/S3500/3411_R2.PDF
