Foreclosure & Foreclosure Assistance

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2 Foreclosure & Foreclosure Assistance

3 Kevin M. Wolfe Asst. Director, Civil Practice Division NJ Administrative Office of the Courts

4 Topics Residential Mortgage Foreclosure Filings Trends Foreclosure Process in New Jersey HMFA Foreclosure Housing Counselor & Financial Assistance Judiciary s Foreclosure Mediation Program

5 70,000 Total Foreclosure Filings Court Years ,000 60,000 55,000 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,

6 7500 Residential Foreclosure Cases Filed Monthly by File Date January October / / / / / / / / / / / / / / / / / / / / / / / / / / / / /09

7 Total Foreclosure Filings by County Court Year ATL BER BUR CAM CPM CUM ESX GLO HNT HUD MER MID MON MRS OCN PAS SLM SOM SSX UNN WRN

8 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

9 Foreclosure Practice Mechanics General Equity Judges Handle all contested matters and disputes Office of Foreclosure Rule 1:34-6 uncontested matters Recommend entry of orders and judgments

10 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)

11 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 place purchaser in possession of the property.

12 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 Post Sale Redemption

13 Foreclosure Time Line Handout of Model Foreclosure Time Line

14 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.

15 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, transfers or ceases to occupy the property within 10 years

16 Mediation Mediation is a dispute resolution process in which an impartial third party - a mediator - facilitates negotiations among the parties. The purpose of mediation is to give the parties the opportunity to work ultimately toward a mutually acceptable resolution/ settlement.

17 Judiciary s Foreclosure Mediation Program Eligibility 1. the property is an owner-occupied one- to threefamily residential property; 2. the property is the homeowner s primary residence; and 3. the homeowner is the borrower on the mortgage loan being foreclosed. Opt-in within 60 days of service of the foreclosure complaint Mediation Scheduled in County Courthouses Mediation conducted by the Office of Dispute Settlement

18 Foreclosure Mediation Statistics January 2009 Implementation Since inception, 14,502 requests for foreclosure mediation 10,506 have completed mediation 4,748 cases settled (45.2%) 5,758 cases not settled (54.8%) In the most recent court year, July 1, 2012 through June 30, 2013, 1,557 requests for mediation were completed. Of that number 771 were settled allowing the homeowner to remain in their home, a 49.5% settlement rate. Additionally, another 2.3% have accepted a graceful exit through a short sale or deed-in-lieu of foreclosure

19 Questions?