Housing (Mortgages) in New Jersey

in committee · New Jersey · General Assembly Jan 13, 2026

A 753: Concerns expedited process for foreclosing vacant and abandoned residential properties in uncontested actions.

This bill creates a faster court process for lenders to foreclose on residential properties deemed "vacant and abandoned," directly affecting mortgage lenders and owners of such properties. It defines "vacant and abandoned" through specific evidence (e.g., overgrown vegetation, disconnected utilities, neighbor reports), removes the requirement to serve a "notice to cure" for these cases, and mandates two documented service attempts on the property. The expedited process applies only to uncontested cases where the court confirms abandonment via clear evidence and no defense is filed. This change streamlines foreclosures for properties meeting strict criteria but does not override other foreclosure procedures or apply to timeshares.

Topics ✗ Housing

Sub-Topics Mortgages

in committee · New Jersey · General Assembly Jan 13, 2026

A 3485: Revises tax lien foreclosure process to protect equity accrued by property owner in tax lien foreclosure.

This bill revises New Jersey's tax lien foreclosure process to require returning excess property equity to owners after liens are foreclosed. It directly affects property owners whose tax liens were foreclosed under current law, which allowed lienholders (municipalities or private entities) to keep all proceeds from property sales beyond unpaid taxes plus interest. The key provision mandates that courts must order lienholders to return any excess equity to the former owner once the lienholder is reimbursed for the taxes, interest, and costs they paid. This change responds to court rulings finding the prior practice unconstitutional under both the U.S. Fifth Amendment and New Jersey's Constitution, which prohibit uncompensated taking of property. The bill aims to align New Jersey law with the Supreme Court's Tyler v. Hennepin County decision and recent state appellate rulings.

Topics ✓ Budget & Taxes ✓ Housing

Sub-Topics Landlords Mortgages

in committee · New Jersey · General Assembly Jan 13, 2026

A 3248: Prohibits certain institutional investors from purchasing or acquiring single-family homes.

This bill would generally prohibit "institutional investors" (large investment firms or entities controlling multiple properties) from purchasing or acquiring single-family homes in New Jersey, including townhomes. It defines "institutional investor" to exclude small investors owning four or fewer homes, nonprofits providing affordable housing, family trusts, and entities acquiring homes through foreclosure or eminent domain. The law applies to all single-family home purchases unless exempted under specific provisions, such as for nonprofits serving affordable housing or small-scale investors. It does not affect individual homebuyers or most standard real estate transactions.

Topics ✓ Housing

Sub-Topics Affordable Housing Mortgages

in committee · New Jersey · General Assembly Jan 13, 2026

A 3479: Establishes mortgage payment relief and foreclosure protection for certain homeowners impacted by the remnants of Hurricane Ida.

This New Jersey bill provides temporary mortgage relief to homeowners directly impacted by Hurricane Ida's 2021 flooding. It requires mortgage servicers to grant a one-year payment pause (forbearance) to eligible homeowners who received federal disaster aid for storm-damaged primary residences, meet income limits (under 150% of median income), and have limited savings. During this period, servicers cannot charge fees, penalties, or report negative credit information, and must halt foreclosure actions. The relief applies only to those who obtained FEMA or similar federal assistance for damage sustained to their homes.

Topics ✓ Housing

Sub-Topics Mortgages

in committee · New Jersey · General Assembly Jan 13, 2026

A 741: Prohibits certain financial institutions from requiring certain disabled veterans to include anticipated property tax obligations as part of mortgage applications.

This bill prohibits New Jersey financial institutions (state-chartered banks, mortgage companies, and credit unions) from requiring disabled veterans or their surviving spouses to disclose annual property tax obligations when applying for a mortgage on their primary residence. It applies specifically to "qualified veterans" (100% service-connected disability) and their surviving spouses who qualify for the disabled veterans' property tax exemption. Financial institutions must instead obtain a certification from the municipal assessor confirming the applicant meets all exemption eligibility requirements except property ownership (for new homes) or including ownership (for refinancing). The bill streamlines the mortgage process by removing this tax disclosure requirement, using a standardized form for assessor certifications.

Topics ✓ Housing ✓ Veterans

Sub-Topics Mortgages Property Taxes Veteran Healthcare