Robert A. Marsico
Partner
201-896-7165 rmarsico@sh-law.comFirm Insights
New Foreclosure Rules for Vacant Properties in NJ
Author: Robert A. Marsico
Date: June 4, 2013
Key Contacts
Back
It will now be easier for lenders to foreclose on abandoned properties in New Jersey. The changes are the result of new legislation and relaxed court rules.
Legislation signed into law in December, N.J.S.A. 2A:50-73, provides for a summary procedure for foreclosure of vacant or abandoned residential properties. It authorizes a court to deem a residential property “vacant and abandoned” if it finds that the property is not occupied by a mortgagor or tenant, and at least two of 15 specified property conditions exist. They include disconnected utilities, overgrown vegetation, boarded windows, and municipal code violations.
Late last month, the Supreme Court of New Jersey relaxed the provisions of Rule 4:64-1 to accommodate the summary proceedings. Under the new procedures, the lender must file a complaint setting out facts that demonstrate that the property is vacant and abandoned and certify the amount due. The lender must attempt service of the notice of summary proceedings at least twice. The attempts must be at least 72 hours apart and at varied times of day.
Where the court finds that a residential property is vacant and abandoned, a notice of motion for entry of judgment and the notice of tenants’ rights during foreclosure do not need to be served. In addition, the court may enter final judgment on the return date of the order to show cause or the order to proceed summarily so long as there are sufficient proofs of notice.
As highlighted by the NJ Supreme Court, the Civil Practice Division of the Administrative Office of the Courts has developed a set of model pleadings to initiate a summary mortgage foreclosure action for vacant and abandoned residential property or to convert a pending foreclosure action to a summary proceeding. The forms are not required but encouraged.
If you have any questions about the new foreclosure process or would like to discuss how your business may benefit, please contact me, Bob Marisco, or the Scarinci Hollenbeck attorney with whom you work.
- Industries: Real Estate
- Practices: Commercial Real Estate, Commercial Leasing
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Top 5 Causes Leading to Construction Defect Litigation
The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]
Author: Paul Grossman
How to Protect Your New Jersey Business When Going through a Divorce
The most effective ways to protect your business in a divorce are put in place before one begins: a prenuptial or postnuptial agreement, clean separation of business and personal finances, and divorce contingencies built into your operating or buy-sell agreements. If divorce is already underway, the priorities shift to establishing how the business is classified […]
Author: Jay McDaniel
10 Common Issues in Franchise Disputes
The most common franchise disputes involve breach of contract, franchise termination and non-renewal, intellectual property rights, territorial encroachment, royalty and fee payments, franchisor support obligations, and violations of state franchise laws such as the New Jersey Franchise Practices Act. Franchisors and franchisees can often resolve these conflicts by providing written notice detailing the dispute and […]
Author: Paul Grossman
Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together
New Jersey businesses must manage legal and reputational risk together because modern disputes play out on two fronts at once: the legal proceeding itself and the court of public opinion, where customers, employees, investors, and business partners often reach conclusions long before a judge or jury has had the opportunity to evaluate the facts. Success […]
Author: Sean M. Pena
Eviction Is Not Always the End: Understanding Post-Possession Rent Claims in New Jersey and New York
No. An eviction does not automatically end a tenant’s obligation to pay rent. Post-eviction rent claims are common because recovering possession resolves who has the right to occupy the premises, but it does not extinguish the tenant’s contractual obligations under the lease. Whether unpaid or future rent remains owed depends on three factors: the lease’s […]
Author: Donald M. Pepe
Company Dissolved? Legal and Financial Consequences to Expect
A company is dissolved; legally, it ceases to exist. Accordingly, dissolution results in significant legal and financial consequences. It is a process that must be properly managed to avoid continuing liability. The Corporate Dissolution Process Corporate dissolution is the legal process of formally closing a corporation, paying its debts and distributing the remaining assets. Most […]
Author: Jay McDaniel
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.