On January 12th, 2024, New Jersey’s Fair Foreclosure Act was amended to include a new foreclosure protection for homeowners. Specifically, the introduction of the Community Wealth Preservation Program gives families facing foreclosure the first chance to buy back their homes at sheriff’s sales.
The New Jersey Fair Foreclosure Act (FFA) is a set of laws designed to ensure fairness and due process for homeowners facing foreclosure. Key provisions of the FFA include:
The Fair Foreclosure Act aims to prevent wrongful foreclosures by requiring lenders to ensure that homeowners are fully informed and given every opportunity to retain their homes. Following the amendments made in January, families hoping to buy back a foreclosed home need to secure a loan preapproval for an amount that matches the property’s original upset price.
In addition to the Fair Foreclosure Act, homeowners also benefit from the NJ Consumer Fraud Act, the Federal Truth in Lending Act, and The Fair Debt Collection Practices Act.
The NJ Consumer Fraud Act protects consumers against deceptive practices in sales and services, including real estate and mortgages. For foreclosure defense, this act is relevant if a lender or servicer has misled homeowners about mortgage terms or foreclosure remedies. Homeowners can use violations of this act to challenge the foreclosure process and potentially seek damages.
The Truth in Lending Act requires lenders to provide clear disclosures about loan terms and costs. In foreclosure defense, TILA is crucial if the lender fails to disclose key details like interest rates or conditions of adjustable rates. Violations can lead to loan rescission, providing a strong basis to contest foreclosures and renegotiate terms.
The Fair Debt Collection Practices Act (FDCPA) (15 USC 1692 et seq.), which became effective in March 1978, was designed to eliminate abusive, deceptive, and unfair debt collection practices.
When facing foreclosure, homeowners should have all the information needed to properly defend themselves. An experienced NJ foreclosure defense attorney can help ensure all options are understood. Ira J. Metrick has been helping homeowners in New Jersey for more than 20 years. Contact us to learn more about the NJ Foreclosure Timeline, apply for a loan modification, or receive a free consultation.
For more than 20 years, the focus of my law firm has been consumer advocacy. Whether it has been fighting foreclosure, taking on abusive debt collectors, or dealing with issues related to bankruptcy proceedings, I have helped my clients tackle seemingly insurmountable financial difficulties. continue reading
Homeowners have been falling victim to “zombie second mortgages,” which are loans that disappeared several years ago only to discover
Important Update for New Jersey Homeowners: New Sheriff Sale Notice Requirements As of January 12, 2024, New Jersey has changed
For more than 20 years, the focus of my law firm has been consumer advocacy. Whether it has been fighting foreclosure , helping apply for Mortgage Loan Modifications , assisting with Surplus Funds, or helping resolve complex federal tax lien issues , I’ve helped my clients fight against overwhelming financial difficulties.
No matter what stage you’re at in the sheriff sale , foreclosure, or federal tax lien process, you may still have options. When you retain my firm, our office can help you legally stop calls from your lender and navigate tax lien or foreclosure notices you may have received. Contact us today to schedule a free no-obligation consultation.
