Foreclosure &
Kevin M. Wolfe
Asst. Director, Civil Practice Division
NJ Administrative Office of the Courts
Topics
•
Residential Mortgage Foreclosure Filings
Trends
•
Foreclosure Process in New Jersey
•
HMFA Foreclosure Housing Counselor &
Financial Assistance
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 65,000 70,000 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Total Foreclosure Filings
Court Years 1995-2013
0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 6500 7000 7500 2009/ 01 2009/ 03 2009/ 05 2009/ 07 2009/ 09 2009/ 11 2010/ 01 2010/ 03 2010/ 05 2010/ 07 2010/ 09 2010/ 11 2011/ 01 2011/ 03 2011/ 05 2011/ 07 2011/ 09 2011/ 11 2012/ 01 2012/ 03 2012/ 05 2012/ 07 2012/ 09 2012/ 11 2013/ 01 2013/ 03 2013/ 05 2013/ 07 2013/ 09
Residential Foreclosure Cases Filed
Monthly by File Date January 2009 - October 2013
0 500 1000 1500 2000 2500 3000 3500 4000 4500
ATL BER BUR CAM CPM CUM ESX GLO HNT HUD MER MID MON MRS OCN PAS SLM SOM SSX UNN WRN
Total Foreclosure Filings by County
Foreclosure Process Mechanics
•
JEFIS-Foreclosure and ACMS
–
All foreclosure documents are electronically
filed through JEFIS-Foreclosure in Trenton.
–
All foreclosures cases are viewable at public
access terminals in courthouses
•
Since November 2008, ACMS has property
data – county, municipality, street address,
block & lot for all foreclosure actions filed in
New Jersey
Foreclosure Practice Mechanics
•
General Equity Judges
–
Handle all contested matters and disputes
•
Office of Foreclosure
–
Rule 1:34-6 uncontested matters
Mortgage Foreclosure
• Serve Notice of Intent to Foreclose • Foreclosure Complaint Filing with SCC • File Lis Pendens with County Clerk • Service of Process on All defendants
– Non-contesting Answers and Contesting Answers
• Entry of Default • Serve Notice to Cure
• Notice of Motion for Entry of Judgment • Final Judgment Package
– Affidavit of Amount Due
– Certification of Diligent Inquiry – Affidavit of Costs
– Certification of Amount Due – Affidavit of Non-Military Service – Certified or Original Instruments – Counsel Fees (Rule 4:42-9)
Mortgage Foreclosure
•
Judgment Entered and Writ of Execution
Issue
–
Writ of Execution – Command’s Sheriff to sell
property to satisfy a judgment.
–
Writ of Possession – Command’s Sheriff to
FORECLOSURE POST
JUDGMENT
•
Sheriff’s Foreclosure Sale Practices
–
120 days
–
Published for four consecutive weeks
–
Upset Price
–
Caveat Emptor (let the buyer beware)
–
20 percent deposit
–
Sheriff's Deed --may not give clear title to the
property
•
Stay Applications
Foreclosure Time Line
Tenant Protection
•
Legitimate tenants are protected from
foreclosure
•
Chase Manhattan Bank v. Josephson, 135 N.J.
209 (1994) --
Anti-Eviction Act protects tenants
from eviction by foreclosing mortgagees
•
Rule
4:64-1(d) . . . If the premises are
residential, . . . . notice of tenants’ rights during
foreclosure in the form prescribed by Appendix
XII-K . . . envelope 14 point type: “Important
Notice about Tenants Rights.”
New Jersey Mortgage & Housing
Finance Agency
•
Housing Counselor Funding & Financial Assistance
•
FastFacts - List of Housing Counselors
– Housing counselors trained in foreclosure prevention
•
National Foreclosure Mitigation Program provides pre-foreclosure
counseling and assistance to households facing foreclosure prior to the
receipt of a foreclosure filing notice
•
Funding
– Mortgage Assistance Program (MAP) provides up to $20,000 loan to bring
mortgage current to homeowners who are in imminent danger of foreclosure due to short term financial problems beyond their control.
– HomeKeeper program provides up to $48,000 for a term of up to 24
months for homeowners in danger of foreclosure as a direct result of unemployment or underemployment.
– a second mortgage loan, repayable only if the homeowner sells, refinances,
