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
Why Secured Transactions Are Important
Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]
Author: Dan Brecher
Don’t Cash a “Paid in Full” Check Without Understanding the Legal Implications
Cashing a check marked “paid in full” can be a risky endeavor, particularly if you don’t fully understanding the legal implications. If you are owed more than the amount of the check you accept and deposit, you may waive your right to collect the full disputed amount. That is why you should consider either rejecting […]
Author: Dan Brecher
Changes to Qualified Small Business Stock Will Benefit Startup Founders and Investors
The One Big Beautiful Bill Act of 2025 (OBBBA) significantly impacts federal taxes, credits, and deductions. A key change relating to Qualified Small Business Stock (QSBS) allows greater tax-free gains for investments in startups and other qualifying small businesses. Company founders and other investors should understand how the enhanced tax strategy works or risk missing […]
Author: Dan Brecher
Corporate Consolidation and Antitrust Issues in Mergers
Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]
Author: Dan Brecher
What is Business Law and Why Is it Important?
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Author: Dan Brecher
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
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.