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A2777 TR
ASSEMBLY, No. 2777
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblywoman VERLINA REYNOLDS-JACKSON
District 15 (Hunterdon and Mercer)
Assemblywoman YVONNE LOPEZ
District 19 (Middlesex)
Assemblywoman� KATIE BRENNAN
District 32 (Hudson)
Co-Sponsored by:
Assemblyman Calabrese
SYNOPSIS
���� The "New Jersey Online Foreclosure Sale
Act;" permits online foreclosure sales for real property.
CURRENT VERSION OF TEXT
���� As reported by the Assembly Housing Committee with
technical review.
��
An Act
concerning the electronic sale of real property at
foreclosure, supplementing chapter 61 of Title 2A of the New Jersey Statutes,
and amending N.J.S.2A:61-1 and N.J.S.2A:61-4.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.� (New section)� P.L.��� ,
c.��� (C.������� ) (pending before the Legislature as this bill) shall be known
and may be cited as the
"
New Jersey
Online Foreclosure Sale Act.
"
�����
2.�
(New section)� Any sheriff or other officer or
person authorized or required by statute, court directive, or other law to
conduct an electronic, online foreclosure sale of real estate, shall conduct
the sale in accordance with the following requirements:
����� a.�
On behalf of a sheriff or other officer or person authorized or required by
statute, court directive, or other law to conduct an electronic, online
foreclosure sale of real estate, a county may enter into a contract with
a vendor to conduct an electronic, online foreclosure sale
of real estate, provided that New Jersey law governs the contract and the
relationship between the parties.� Any such contract shall detail the
requirements with respect to: services; fee amounts; method of charging a fee
in the auction; recovery maximization; marketing; record-keeping requirements;
and security requirements.
����� b.� An electronic real property foreclosure service
provider may be procured through competitive contracting pursuant to P.L.1999,
c.440 (C.40A:11-4.1 et seq.).� The track record of each responsive vendor in
creating competitive auctions that maximize recovery for the benefit of debtors
and lenders shall be considered in the evaluation and ranking of submitted
proposals.
����� c.� An officer, employee, or independent contractor
of the vendor shall not participate in the auction.
����� d.� All bids entered during the auction shall be
visible to the public online and displayed at the time they are placed.� Any
maximum bid amounts provided by bidders ahead of the sale shall not be visible
to the public or to the sheriff while the auction is in process until the bid
is placed.
����� e.� A fee charged to a bidder, sheriff, or other
officer or person by a vendor for conducting an electronic real property
foreclosure service shall be deemed a reasonable and necessary taxable expense
pursuant to N.J.S.22A:2-8.� The vendor shall not charge a fee for the public to
view properties for sale.�
����� f.� A vendor conducting electronic, online
foreclosures may provide services related to transaction settlement and funds
handling.� A vendor may charge customary and reasonable fees for funds handling
and transfer.
����� g.� (1)� Notwithstanding any other provision of this
section to the contrary, the total of all fees charged by a vendor shall not
exceed $1,000 per auction.�
If one or
more properties are scheduled for auction multiple times under a single
foreclosure action, the total fees charged by the vendor related to the
property or properties shall not exceed $1,000
.
����� (2)� Any fees charged by a vendor shall either be
taken directly from the purchaser�s deposit with the vendor or the plaintiff�s
deposit with the sheriff, and any vendor fees shall not reduce or impact the
sheriff�s fees pursuant to N.J.S.22A:4-8.� Any fees due to the vendor shall be
paid when the sheriff�s office has received and is ready to disburse sales
proceeds.
����� h.� The sheriff or other officer or person conducting
the
electronic, online foreclosure sale
, and the contracted vendor, shall require each prospective
bidder to verify the bidder�s identity through an identification verification
process before allowing the placement of a bid online, which may include
verification through a government-issued ID, biometric verification, or other
secure methods of verification.
����� i.� The sheriff or other officer or person conducting
the
electronic, online foreclosure sale
, and the contracted vendor, shall require a prospective
bidder to complete a registration process, which shall disclose information
necessary to properly identify the bidder, contact the bidder, and complete the
sale of the property.
����� j.� The sheriff or other officer or person conducting
the
electronic, online foreclosure sale
, and the contracted vendor, shall obtain from the
successful bidder the following information:
����� (1)� Information necessary to be checked against the
federal Office of Foreign Assets Control Sanctions List prior to finalizing the
purchase of the property;
����� (2)� If the successful bidder is an individual, the
individual's name, physical mailing address, electronic mail address, and any
other information requested by the sheriff or other officer or person
conducting the electronic, online foreclosure sale, in order to accurately
identify and contact the bidder; and
����� (3)� If the successful bidder is an entity, the
entity's legal name; trade name, if different from its legal name; date of
formation; state of formation; registered mailing address; proof of business
registration with the State of New Jersey; the registered officer or agent; the
name of an individual contact person for the entity; and the electronic mail
address and telephone number for that individual.
���� 3.� N.J.S.2A:61-1 is amended
to read as follows:
���� 2A:61-1.�
a.
� When any
sheriff, coroner, master, executor, administrator, guardian, commissioner,
auditor or other officer or person is authorized or required by any public
statute or the direction of any court of competent jurisdiction in this State
to make sales of real estate,
[
he
]
that
person
shall, unless otherwise specially directed or authorized by law,
before making the sale, give notice of the time and place of the sale by public
advertisement, signed by
[
himself
]
that
person
, and set up in the office of the sheriff of the county or counties
where the real estate is located and at the premises to be sold, at least
[
3
]
three
weeks before the time appointed for the sale.� The notice need not be set up at
any other place.� The notice of sale shall include either a diagram of the
premises or a concise statement indicating the municipality, the tax lot and
block and where appropriate, the street and street number, and the dimensions
of the premises, as well as the number of feet to the nearest cross street.�
The notice of sale shall state that the diagram or concise description does not
constitute a full legal description of the premises, and shall state where the
full legal description can be found.
����
b.� (1)
� Such officer
or person shall also cause the notice to be published
[
4
]
four
times, at least once a week, during
[
4
]
four
consecutive weeks, in two newspapers, to be by
[
him
]
the officer or person
designated
[
,
]
as
follows:
���� (a)� both printed and
published in the county where the real estate to be sold is located, one of
which shall be either a newspaper published at the county seat of the county or
a newspaper published in the municipality in the county having the largest population
according to the latest census
[
,
or
]
;
���� (b)� one printed and published
in the county and one circulating in the county, if only one daily newspaper is
printed and published in the county
[
,
or
]
;
��
(c)�
one published at the county seat and one circulating in the county, if no daily
newspaper is published in the county
[
,
]
;
or�
���� (d)� both circulating in the
county, if no newspapers are printed and published in the county.
���� The first publication shall be
at least 21 days prior and the last publication not more than
[
8
]
eight
days
prior to the time appointed for the sale of the real estate.
���� Whenever, in the opinion of
any such officer or person, the ends of justice shall require it, or the sale
being conducted by
[
him
]
the
officer or person
will be benefited thereby, the notice of sale may be
published in three newspapers instead of two
,
as required by
[
the second
paragraph
]
subsection b.
of this section, if there be that number printed and
published in the county where the real estate to be sold is located.
���� The officer or person so
advertising in the newspapers shall be entitled therefor, in addition to his
other fees, to the sum of $1.50, except where it is otherwise specifically
provided.
����
(2)� Notwithstanding the
provisions of this section, if the sale of property is to be conducted in an
online, electronic format, the officer or person shall also publish notice of
the time and place of the sale online on the Internet website at which the sale
will be conducted electronically.
����
c.� If the sale of real
estate is conducted electronically online pursuant to section 2 of P.L.��� ,
c.��� (C.������� ) (pending before the Legislature as this bill), then, in
addition to the requirements set forth in subsection a. of this section, the notice
shall state that the sale is being held by means of an electronic, online
auction, and the notice shall include the auction�s Internet website address.
�
����
d.� If an online
foreclosure auction format is used, the vendor shall provide a non-electronic
option for bidders, which may include a paper bid packet.�
(cf: P.L.1979, c.364, s.1)
���� 4.� N.J.S.2A:61-4 is amended
to read as follows:
���� 2A:61-4.�
a.
� Any
officer or person
[
mentioned
]
who is
authorized or required
in
[
section
]
N.J.S.
2A:61-1
of this title, making a sale of real estate governed by this chapter, shall, at
the time and place appointed therefor, between the hours of
[
12 and 5 in
the afternoon
]
12:00 p.m. and 5:00 p.m.
, if requested by any person interested in the
sale of the real estate to be sold, read the description of the real estate to
be sold by metes and bounds, or, in the absence of such a request, the officer
or person making the sale shall announce the street and number, or streets and
numbers, of the real estate to be sold, or the block and lot number or numbers
by which such real estate is designated on the taxing maps of the municipality
or municipalities in which the same is situate, if the same is not identified
by a street and number or streets and numbers on such taxing maps, and where
there is no street number or lot and block number, the officer or person making
the sale may announce such description or designation as to him may be deemed
sufficient, and sell such real estate at public vendue to the highest bidder.
����
b.� As an alternative to
the procedures in subsection a. of this section, any officer or person who is
authorized or required in N.J.S.2A:61-1 of this title, making a sale of real
estate governed by this chapter, may conduct the sale by means of electronic
auction conducted online.
(cf: N.J.S.2A:61-4)
���� 5.� Section 12 of P.L.1995,
c.244 (C.2A:50-64) is amended to read as follows:
���� 12.� a.� With respect to the
sale of a mortgaged premises under foreclosure action, each sheriff in this
State shall provide for, but not be limited to, the following uniform
procedures:
���� (1)�� Bidding in the name of
the assignee of the foreclosing plaintiff.
���� (2)�� That adjournment of the
sale of the foreclosed property shall be in accordance with N.J.S.2A:17-36.
���� (3)� (a)� The sheriff shall
conduct a sale within 150 days of the sheriff's receipt of any writ of
execution issued by the court in any foreclosure proceeding.
���� (b)�� If it becomes apparent
that the sheriff cannot comply with the provisions of subparagraph (a) of this
paragraph (3), the foreclosing plaintiff may apply to the office for an order
appointing a Special Master to hold the foreclosure sale.
���� (c)�� Upon the foreclosing
plaintiff making such application to the office, the office shall issue the
appropriate order appointing a Special Master to hold the foreclosure sale.�
The office may issue the order to appoint a Special Master to hold foreclosure
sales for one or more properties within a vicinage.
���� (4)�� That notice for the sale
of a foreclosed upon residential property be mailed to the primary address of
the foreclosed upon defendant and to the address of the foreclosed upon
residential property.� Notice of the sale shall be mailed in an envelope that plainly
states on its exterior that the envelope is a notice for the sale of the
foreclosed upon residential property.� The language used on the exterior of the
envelope shall comply with the federal "Fair Debt Collection Practices
Act," 15 U.S.C. s.1692 et seq.
���� (5)� (a)� That notice of the
upset price for the sale of a foreclosed upon residential property be provided
at least four weeks prior to the sheriff's sale and posted on the Internet
website of the sheriff's office and on any other medium used to provide notice
of the sheriff's sale.� The upset price provided in the notice shall be a good
faith estimate of the upset price on the day of the sheriff's sale; however,
the upset price on the day of the sheriff's sale shall not increase by more
than three percent from the upset price originally provided in the notice.� If
the sheriff's sale is delayed or postponed, or if circumstances occur that
require unforeseen advances to protect the borrower or the foreclosed upon
residential property in the event of vandalism, weather damage, or other
emergency property preservation needs, the upset price may be adjusted to
reflect these costs in the latest price; and
���� (b)�� Prior to providing the
upset price to the sheriff's office pursuant to subparagraph (a) of this
paragraph, the foreclosing plaintiff or agent of the foreclosing plaintiff
shall be prohibited from contacting the foreclosed upon defendant, next of kin
of the foreclosed upon defendant, or a nonprofit community development
corporation to inquire whether the foreclosed upon defendant, next of kin, or
nonprofit community development corporation intends to participate in the
sheriff's sale for the foreclosed upon property or exercise the provisions of
P.L.2023, c.255 (C.2A:50-56a et al.).� If, after providing notice of the upset
price pursuant to subsection a. of this section, the foreclosing plaintiff is
informed that the foreclosed upon defendant, next of kin, or nonprofit
community development corporation intends to participate in the sheriff's sale
or exercise the provisions of P.L.2023, c.255 (C.2A:50-56a et al.), the
foreclosing plaintiff shall not attempt to delay or postpone the sheriff's sale
by reason of the foreclosed upon defendant, next of kin, or nonprofit community
development corporation's intention to participate in the sheriff's sale or
exercise the provisions of P.L.2023, c.255 (C.2A:50-56a et al.).� Any notice
required pursuant to this paragraph shall comply with the federal "Fair
Debt Collection Practices Act," 15 U.S.C. s.1692 et seq.
���� (6)�� Prior to the sale of
residential property, the foreclosing plaintiff shall disclose, if known,
whether the property is vacant, tenant-occupied, or owner-occupied.� If the
property is vacant, the foreclosing plaintiff shall provide the successful
bidder access to the property if the foreclosing plaintiff has such access and
may condition access by the successful bidder on being accompanied by a
representative of the foreclosing plaintiff.
���� (7)� (a)� Except as otherwise
provided in subparagraphs (b) and (c) of this paragraph, the successful bidder
at the sheriff's sale shall pay a 20 percent deposit
[
in either cash or by a certified
or cashier's check, made payable to the sheriff of the county in which the sale
is conducted,
]
immediately upon the conclusion of the foreclosure sale
or within a
timeframe established by the sheriff regarding online sales
.
���� (b)�� In the case of
residential property in which the successful bidder is the foreclosed upon
defendant, next of kin, tenant, nonprofit community development corporation, or
a bidder who shall occupy the property as the bidder's primary residence for a
period of at least 84 months, the successful bidder who has fulfilled the
requirements set forth in subsection e. of this section shall pay a 3.5 percent
deposit of the original upset price listed in the notice provided by the
foreclosing plaintiff pursuant to subparagraph (a) of paragraph (5) of this
subsection, or the final starting upset price listed for the sale of the
property, whichever is less, with the rest of the balance due within 90
business days by cash, certified or cashier's check, or by wire transfer, made
payable to the sheriff of the county in which the sale is conducted or to the
Special Master, if the sheriff cannot comply with the provisions of
subparagraph (a) of paragraph (3) of this subsection, immediately upon the
conclusion of the foreclosure sale.
���� (c)�� If the successful bidder
cannot satisfy the requirement of this paragraph that is applicable to the
bidder, or the applicable requirement of this paragraph respectively, the
bidder shall be in default and the sheriff shall immediately void the sale and
proceed further with the resale of the premises without the necessity of
adjourning the sale, without renotification of any party to the foreclosure
[
and
]
,
without the republication of any sales notice
, or the reposting of the
online sales notice
.� Upon such resale, the defaulting bidder shall be
liable to the foreclosing plaintiff for any additional costs incurred by such
default including, but not limited to, any difference between the amount bid by
the defaulting bidder and the amount generated for the foreclosing plaintiff at
the resale.� In the event the plaintiff is the successful bidder at the resale,
the plaintiff shall provide a credit for the fair market value of the property
foreclosed.
���� (8)� It is permissible, upon
consent of the sheriff conducting the sheriff's sale, that it shall not be
necessary for an attorney or representative of the person who initiated the
foreclosure to be present physically at the sheriff's sale to make a bid.� A
letter containing bidding instructions may be sent to the sheriff in lieu of an
appearance.
���� (9)� That each sheriff's
office shall use, and the plaintiff's attorney shall prepare and submit to the
sheriff's office, a deed which shall be in substantially the following form:
THIS INDENTURE,
made this .....................
(date) day of ..................... (month), ........... (year).� Between
................................ (name), Sheriff of the County of
................. (name) in the State of New Jersey, party of the first part
and .................................................... (name(s)) party of the
second part, witnesseth.
���� WHEREAS, on the
...................... (date) day of ......................... (month), .......
(year), a certain Writ of Execution was issued out of the Superior Court of New
Jersey, Chancery Division- .................... (name) County, Docket No.���������������
directed and delivered to the Sheriff of the said County of ..................
(name) and which said Writ is in the words or to the effect following that is
to say:
���� THE STATE OF NEW JERSEY to the
Sheriff of the County of .................. (name),
Greeting:
���� WHEREAS, on the
................. (date) day of ............. (month), ............... (year),
by a certain judgment made in our Superior Court of New Jersey, in a certain
cause therein pending, wherein the PLAINTIFF is:
...................................................................
...................................................................
...................................................................
���� and the following named
parties are the DEFENDANTS:
...................................................................
...................................................................
...................................................................
���� IT WAS ORDERED AND ADJUDGED
that certain mortgaged premises, with the appurtenances in the Complaint, and
Amendment to Complaint, if any, in the said cause particularly set forth and
described, that is to say:� The mortgaged premises are described as set forth
upon the RIDER ANNEXED HERETO AND MADE A PART HEREOF.
BEING KNOWN AS Tax Lot ........
(number) in Block ......... (number) COMMONLY KNOWN AS (street address)
....................... .
TOGETHER, with all and singular the
rights, liberties, privileges, hereditaments and appurtenances thereunto
belonging or in anywise appertaining, and the reversion and remainders, rents,
issues and profits thereof, and also all the estate, right, title, interest,
use, property, claim and demand of the said defendants of, in, to and out of
the same, to be sold, to pay and satisfy in the first place unto the plaintiff,
...................................................................
...................................................................
the sum of $ ......... (amount)
being the principal, interest and advances secured by a certain mortgage dated
............... (date, month, year) and given by ........................
(name) together with lawful interest from
...................................................................
...................................................................
...................................................................
until the same be paid and
satisfied and also the costs of the aforesaid plaintiff with interest thereon.
AND for that purpose a Writ of
Execution should issue, directed to the Sheriff of the County of ..............
(name) commanding him to make sale as aforesaid; and that the surplus money
arising from such sale, if any there be, should be brought into our said Court,
as by the judgment remaining as of record in our said Superior Court of New
Jersey, at Trenton, doth and more fully appear; and whereas, the costs and
Attorney's fees of the said plaintiff have been duly taxed at the following
sum:� $ ............. (amount)
THEREFORE, you are hereby commanded
that you cause to be made of the premises aforesaid, by selling so much of the
same as may be needful and necessary for the purpose, the said sum of
$......... (amount) and the same you do pay to the said plaintiff together with
contract and lawful interest thereon as aforesaid, and the sum aforesaid of
costs with interest thereon.
And that you have the surplus
money, if any there be, before our said Superior Court of New Jersey, aforesaid
at Trenton, within 30 days after pursuant to R.4:59-1(a), to abide the further
Order of the said Court, according to judgment aforesaid, and you are to make
return at the time and place aforesaid, by certificate under your hand, of the
manner in which you have executed this our Writ, together with this Writ, and
if no sale, this Writ shall be returnable within 24 months.
WITNESS, the Honorable ...........
(name), Judge of the Superior Court at Trenton, aforesaid, the ...........
(date) day of ............. (month), ...... (year).
����������������������������������� /s/
........... (Clerk)
����������������������������������� Superior
Court of New Jersey
/s/.............................
Attorney for Plaintiff
As by the record of said Writ of
Execution in the Office of the Superior Court of New Jersey, at Trenton, in
Book ............ (number) of Executions, Page ........ (number) etc., may more
fully appear.
���� AND WHEREAS I, the said
.......................... (name), as such Sheriff as aforesaid did in due form
of law, before making such sale give notice of the time, place, and upset price
of such sale by public advertisement signed by myself, and set up in my office
in the .......................... (name) Building in .................. (name)
County, being the County in which said real estate is situate and also set up
at the premises to be sold at least three weeks next before the time appointed
for such sale.
���� I also caused such notice to
be published
[
four
times in two newspapers designated by me and printed and published in the said
County, the County wherein the real estate sold is situate, the same being
designated for the publication by the Laws of this State, and circulating in
the neighborhood of said real estate, at least once a week during four
consecutive calendar weeks
]
according to the provisions set forth in N.J.S.2A:61-1
.� One of such
newspapers, ......................... (name of newspaper) is a newspaper with
circulation in ................. (name of town), the County seat of said
................. (name) County.� The first publication was at least twenty-one
days prior and the last publication not more than eight days prior to the time
appointed for the sale of such real estate, and by virtue of the said Writ of
Execution, I did offer for sale said land and premises at public vendue at the
County ................ (name) Building in ...................... (name of
town) on the ............... (date) day of ........................, .... (month)
(year) at the hour of ............. (time) in the ......... (a.m. or p.m.).
���� WHEREUPON the said party of
the second part bidding therefore for the same, the sum of $................
(amount) and no other person bidding as much I did then and there openly and
publicly in due form of law between the hours of ............... (time) and
................ (time) in the ........ (a.m. or p.m.), strike off and sell
tracts or parcels of land and premises for the sum of $ ................
(amount) to the said party of the second part being then and there the highest
bidder for same.� And on the ............ (date) of ................. (month)
in the year last aforesaid I did truly report the said sale to the Superior
Court of New Jersey, Chancery Division and no objection to the said sale having
been made, and by Assignment of Bid filed with the Sheriff of
.................. (name) County said bidder assigned its bid to:
...................................................................
...................................................................
...................................................................
���� NOW, THEREFORE, This Indenture
witnesseth, that I, the said .................. (name), as such Sheriff as
aforesaid under and by the virtue of the said Writ of Execution and in
execution of the power and trust in me reposed and also for and in consideration
of the said sum of $ ............... (amount) therefrom acquit, exonerate and
forever discharge to the said party of the second part, its successors and
assigns, all and singular the said tract or parcel of lands and premises, with
the appurtenances, privileges, and hereditaments thereunto belonging or in any
way appertaining; to have and hold the same, unto the said party of the second
part, its successors and assigns to its and their only proper use, benefit, and
behoof forever, in as full, ample and beneficial manner as by virtue of said
Writ of Execution I may, can or ought to convey the same.
And, I, the said ................
(name), do hereby covenant, promise and agree, to and with the said party of
the second part, its successors and assigns, that I have not, as such Sheriff
as aforesaid, done or caused, suffered or procured to be done any act, matter
or thing whereby the said premises, or any part thereof, with the
appurtenances, are or may be charged or encumbered in estate, title or
otherwise.
IN WITNESS WHEREOF, I the said
..................... (name) as such Sheriff as aforesaid, have hereunto set my
hand and seal the day and year aforesaid.
Signed, sealed and delivered
���� �in the presence of
..................................������������ ..............................
Attorney at Law of New Jersey�������� ...........(name)
Sheriff
STATE OF NEW JERSEY)�� SS.
.......(county���� )
���� I, ............... (name),
Sheriff, of the County of ............... (name), do solemnly swear that the
real estate described in this deed made to
...................................................................
...................................................................
...................................................................
was
[
by me
]
sold by virtue of a good and
subsisting execution (or as the case may be) as is therein recited, that the
money ordered to be made has not been to my knowledge or belief paid or
satisfied, that the time and place of the same of said real estate were
[
by me
]
duly
advertised as required by law, and that the same was cried off and sold to a
bona fide purchaser for the best price that could be obtained and the true
consideration for this conveyance as set forth in the deed is $
........................ (amount).
����������������������������������� ..................................
����������������������������������� .........
(name), Sheriff
���� Sworn before me,
................. (name), on this .......... (date) day of ..................
(month), ......... (year), and I having examined the deed above mentioned do
approve the same and order it to be recorded as a good and sufficient
conveyance of the real estate therein described.
STATE OF NEW JERSEY� )��� ss.�� ........................
.......... (Name) County)�������� Attorney
or Notary Public
On this ................... (date)
day of ................. (month), ........ (year), before me, the subscriber,
........................ (name) personally appeared ......................
(name), Sheriff of the County of ................ (name) aforesaid, who is, I
am satisfied, the grantor in the within Indenture named, and I having first
made known to him the contents thereof, he did thereupon acknowledge that he
signed, sealed and delivered the same on his voluntary act and deed, for the
uses and purposes therein expressed.
����������������������������������� .............................
����������������������������������� Attorney
or Notary Public
���� b.��� At the conclusion of the
sheriff's sale, the attorney for the plaintiff shall prepare and deliver to the
sheriff a deed which shall be in the form provided pursuant to paragraph (9) of
subsection a. of this section for the sheriff's execution and the deed shall be
delivered to the sheriff within 10 days of the date of the sale.� The sheriff
shall be entitled to the authorized fee, as a review fee, even if the
plaintiff's attorney prepares the deed.
���� c.� (1)� The sheriff's office
shall, within two weeks of the date of the sale, deliver a fully executed deed
to the successful bidder at the sale provided that the bidder pays the balance
of the monies due
[
to
the Sheriff by either cash or certified or cashier's check
]
.� In the
event a bid is satisfied after the expiration and additional interest is
collected from the successful bidder, the sheriff shall remit to the plaintiff
the total amount, less any fees, costs and commissions due the sheriff, along
with the additional interest.
���� (2)� Notwithstanding the
provisions of paragraph (1) of this subsection, in the case of residential
property in which the successful bidder is permitted to pay a 3.5 percent
deposit upon the conclusion of the foreclosure sale pursuant to subparagraph
(b) of paragraph (7) of subsection a. of this section, no interest shall accrue
on the balance of the sale of the property until 60 business days have passed
following the date of the sale, and thereafter, the successful bidder shall
have 30 business days to fulfill the balance.� If the successful bidder fails
to fulfill the balance within this 90 business day period, the bidder shall
forfeit the deposit on the property and shall be responsible for the payment of
accrued interest incurred as a result of the sale being void, unless the
failure to fulfill the balance is due to the bidder's inability to close a
mortgage through no fault of their own, which includes, but is not limited to,
the appraised value of the property being less than the purchase value of the
property or the financial institution denying financing, in which case the
bidder shall be refunded the deposit on the property and shall be responsible
only for the payment of accrued interest.� In addition, if a successful bidder
fails to fulfill the balance within this 90 business day period, any subsequent
foreclosure sale involving the same residential property and the same
foreclosing plaintiff and foreclosed upon defendant shall be subject to the
procedures set forth in subparagraph (a) of paragraph (7) of subsection a. of
this section and there shall be no right of first or second refusal pursuant to
subsections d. and g. of this section.�
���� d.��� In the case of a
foreclosed residential property where the foreclosed upon defendant is an
individual and not a corporate entity, if the foreclosed upon defendant, next
of kin of the foreclosed upon defendant, or tenant of the foreclosed upon
property has secured financing or assets sufficient to meet terms offered by
the foreclosing plaintiff or an alternative financial institution to purchase
the property, the foreclosed upon defendant, next of kin of the foreclosed upon
defendant, or tenant shall have the right of first refusal to purchase the
property for the original upset price listed in the notice provided pursuant to
subparagraph a. of paragraph (5) of subsection a. of this section, or at the
final starting upset price listed for the sale of the property, whichever is
less.� The right of first refusal shall only be made available to the
foreclosed upon defendant, next of kin of the foreclosed upon defendant, or
tenant for the initial sale of the foreclosed upon property, unless the sale is
delayed or postponed, upon which the foreclosed upon defendant, next of kin of
the foreclosed upon defendant, or tenant shall retain the right of first
refusal for the rescheduled date of sale.� Such right shall be deemed exercised
if, prior to the opening of the bidding on the foreclosed property, the
foreclosed upon defendant, next of kin of the foreclosed upon defendant, or
tenant pays a 3.5 percent deposit with the rest of the balance due within 90
business days, pursuant to the provisions of this section, by cash, certified
or cashier's check, or by wire transfer, made payable to the sheriff of the
county in which the sale is conducted or to the Special Master, if the sheriff
cannot comply with the provisions of subparagraph (a) of paragraph (3) of
subsection a. of this section.
���� e.���� A bidder who is
permitted to pay a 3.5 percent deposit upon the conclusion of the foreclosure
sale pursuant to the provisions of this section may purchase residential
property at a sheriff's sale by way of financing if the bidder provides
documentation that the bidder has been pre-approved by a financial institution
regulated by the Department of Banking and Insurance or by a federal banking
agency, as defined by section 3 of the "New Jersey Residential Mortgage
Lending Act," P.L.2009, c.53 (C.17:11C-53), for financing a residential
property.
���� (1)� A bidder who is permitted
to pay a 3.5 percent deposit upon the conclusion of the foreclosure sale
pursuant to the provisions of this section and intends to finance the purchase
of residential property at a sale shall be:
���� (a)� preapproved for the
amount of the original upset price listed in the notice provided pursuant to
subparagraph a. of paragraph (5) of subsection a. of this section or the final
starting upset price listed for the sheriff's sale of the property, whichever
is less;
���� (b)� limited to submitting
bids no higher than the amount for which the bidder has been pre-approved for
financing; and
���� (c)� if the bidder is an
individual, required to present current and valid photo identification that
substantially conforms to the name and information contained on the financing
pre-approval forms obtained by the bidder.
���� (2)� A tenant or a successful
bidder who intends to occupy the property for 84 months, and finances the
purchase of the property and pays a 3.5 percent deposit pursuant to the
provisions of this section, shall have received eight hours of homebuyer education
and counseling through a United States Department of Housing and Urban
Development (HUD) certified housing counseling agency, and shall present a
certificate of completion or proof of enrollment in that program to the
sheriff.
���� (3)� To ensure that the
provisions of this section only apply to a foreclosed upon defendant or next of
kin of the foreclosed upon defendant who has entered foreclosure proceedings
due to circumstances outside of the foreclosed upon defendant's control, subsections
d. through f. of this section shall only apply to a foreclosed upon defendant
or next of kin of the foreclosed upon defendant that demonstrates to the
foreclosing plaintiff that the foreclosed upon defendant experienced:
���� (a)� financial hardship;
���� (b)� a physical or mental
illness preventing the foreclosed upon defendant from earning an income;
���� (c)� divorce or legal
separation;
���� (d)� proof of death of the
foreclosed upon defendant, or the foreclosed upon defendant's spouse, or child;
or
���� (e) predatory loan practices.
���� Any information provided under
this paragraph shall be provided at the request of the foreclosing plaintiff
prior to the date of sale for the foreclosing property and shall not conflict
with subparagraph (b) of paragraph (5) of subsection a. of this section.
���� (4)�� If a bidder intending to
finance the purchase of the residential property is a current tenant, the
tenant shall provide documentation confirming:
���� (a)�� that the tenant has
resided at the property for at least a year; and
���� (b)�� that the tenant is not
in arrears with rent payments as of the date the foreclosed upon defendant
received a notice of foreclosure from the foreclosing plaintiff.
���� (5)�� To prove the residency
requirement pursuant to subparagraph (a) of paragraph (4) of this subsection,
the tenant shall also be required to present at least two current and valid
forms of identification that substantially conform to the name and property address
contained in the tenant's lease agreement, which shall include but not be
limited to:
���� (a)� a driver's license issued
by the New Jersey Motor Vehicle Commission;
���� (b)� a utility bill;
���� (c)� a checking or savings
account statement from a bank or credit union issued at least 60 days prior to
submitting documentation required pursuant to this subparagraph;
���� (d)� a statement, receipt, or
letter of correspondence from a federal, State, or local government office
delivered at least one year prior to submitting documentation required pursuant
to this subparagraph; or
���� (e)� any other form of
identification that the sheriff deems valid pursuant to this paragraph.
���� (6)�� A tenant shall be
allowed to purchase residential property pursuant to this subsection if a
foreclosed upon defendant or next of kin of the foreclosed upon defendant
decides not to participate in the sheriff's sale or exercise the provisions of
P.L.2023, c.255 (C.2A:50-56a et al.).� A tenant shall have up to 90 business
days to purchase the residential property after successfully bidding for the
property.
���� (7)�� With exception to the
foreclosed upon defendant, the foreclosed upon defendant's next of kin, or a
nonprofit community development corporation, an individual bidder purchasing
residential property in a sheriff's sale pursuant to this subsection shall be required
to occupy the property as the bidder's primary residence for a fixed term of at
least 84 months after taking possession.� The deed for the property shall
clearly state that the property may not be sold for 84 months from the date of
the sheriff's sale, except pursuant to the exceptions permitting a successful
bidder to vacate the property prior to residing in the property for 84 months
in paragraph (8) of this subsection.
���� (8)�� With exception to the
foreclosed upon defendant, the foreclosed upon defendant's next of kin, or a
nonprofit community development corporation, a successful individual bidder who
finances the purchase pursuant to this subsection and does not occupy the residence
for a period of at least 84 months shall be assessed a fine by a court of
competent jurisdiction up to $100,000 for the first violation, and $500,000
thereafter for each subsequent violation.� These penalties shall not be
assessed against a bidder who finances the purchase with good faith and intent
and is thereafter required to vacate the property prior to residing in the
property for 84 months due to:
���� (a)�� death of the bidder or
the bidder's spouse or child;
���� (b)�� disability of the bidder
or a member of the bidder's household;
���� (c)�� divorce;
���� (d)�� legal separation;
���� (e)�� military deployment;
���� (f)�� a change in employment
of the bidder or a member of the bidder's household that results in a reduction
in income or a need to move out-of-state;
���� (g)�� a change in the number
of permanent residents of the household due to: the birth or adoption of a
child; or the permanent relocation of an elder into the household, as proved by
a note from the doctor or social worker of the elder;
���� (h)�� a need to move to care
for a family member for a period of at least six months, as evidenced by: an
address change; and a note from the family member in need of care, the doctor
of the family member, or the social worker for the family member; or
���� (i)��� foreclosure.
���� A bidder who finances the
purchase of the residential property in good faith and intent and is thereafter
required to vacate the property prior to residing in the property for 84 months
pursuant to paragraph (8) of this subsection shall retain the deed to the
property until the deed is transferred.
���� In the event of the death of a
successful bidder, the property may be transferred to another owner in
accordance with applicable laws governing estate, inheritance, and probate
matters and the occupancy requirement shall be extinguished.
���� A fraudulent violation of
subparagraphs (a) through (i) of this paragraph by a bidder shall be an
unlawful practice and a violation of P.L.1960, c.39 (C.56:8-1 et seq.).
���� f.���� If the foreclosed upon
defendant, next of kin of the foreclosed upon defendant, or tenant of the
foreclosed upon property fails to secure financing or assets sufficient to meet
the terms offered by the foreclosing plaintiff or an alternative financial institution
to purchase the residential property, the foreclosed upon defendant, next of
kin of the foreclosed upon defendant, or tenant may request that a nonprofit
community development corporation purchase the property.� If the nonprofit
community development corporation agrees in writing to purchase the property
for the foreclosed upon defendant, next of kin of the foreclosed upon
defendant, or tenant to reside in, the corporation shall:
���� (1)�� allow the foreclosed
upon defendant, next of kin of the foreclosed upon defendant, or tenant to
reside at the property for a period of time as agreed upon in paragraph (2) of
this subsection; and
���� (2)�� negotiate with the
foreclosed upon defendant, next of kin of the foreclosed upon defendant, or
tenant on an affordable lease schedule that shall include an option to purchase
the property from the corporation.
���� g.��� In the case of a
foreclosed residential property, a nonprofit community development corporation,
that has a written agreement with a foreclosed upon defendant, next of kin of
the foreclosed upon defendant, or tenant of the foreclosed upon property pursuant
to subsection f. of this section, shall have a right of second refusal to
purchase the property which is subordinate to the first right of refusal
provided to a foreclosed upon defendant, next of kin of the foreclosed upon
defendant, or tenant pursuant to subsection d. of this section.� If the
foreclosed upon defendant, next of kin of the foreclosed upon defendant, or
tenant decides not to participate in the sheriff's sale, enter into an
agreement with the corporation pursuant to subsection f. of this section, or
fails to secure financing or assets sufficient to meet the terms offered by the
foreclosing plaintiff or an alternative financial institution to purchase the
property, a nonprofit community development corporation shall have the right of
second refusal to purchase the property in the amount approved for the final
starting upset price on the day of the sheriff's sale at the time of the sale.�
Such right shall be deemed exercised if, prior to the opening of the bidding on
the foreclosed property, the corporation pays a 3.5 percent deposit with the
rest of the balance due within 90 business days by cash, certified or cashier's
check, or by wire transfer, made payable to the sheriff of the county in which
the sale is conducted or to the Special Master, if the sheriff cannot comply
with the provisions of subparagraph (a) of paragraph (3) of subsection a. of
this section.� A nonprofit community development corporation shall only have a
right of second refusal to purchase the property if it satisfies the requirements
set forth in subsection h. of this section and fulfills the conditions set
forth in subsection j. of this section.
���� h.� (1)� If a foreclosed upon
defendant, next of kin of the foreclosed upon defendant, or tenant of the
foreclosed upon property does not participate in the sheriff's sale, secure
financing or assets sufficient to meet the terms offered by the foreclosing
plaintiff or an alternative financial institution, or enter into agreement with
a nonprofit community development corporation pursuant to subsection f. of this
section, the nonprofit community development corporation may enter a bid for
the foreclosed upon residential property.�
���� (2)�� A nonprofit community
development corporation intending to bid in a sheriff's sale for residential
property and pay a 3.5 percent deposit as permitted by this section shall, on
the date of the sheriff's sale, register its participation with the sheriff or
Special Master if the sheriff cannot comply with the provisions of paragraph
(3) of subsection a. of this section.� In registering its participation in the
sale, a corporation shall provide the most recent form 1023 filing provided to
the United States Internal Revenue Service, stating the corporation's mission
includes community revitalization and the creation or preservation of
affordable housing through the restoration of vacant and abandoned property.
���� i.� (1)� If more than one
nonprofit community development corporation seeks to exercise the right of
second refusal, the right shall belong in the first instance to a nonprofit
community development corporation that fulfills the conditions set forth in subsection
f. of this section.� If no such nonprofit community development corporation
exists, priority shall belong to the nonprofit community development
corporation that first registers its participation in the foreclosure sale
pursuant to paragraph (2) of subsection h. of this section.
���� (2)�� If an individual or
nonprofit community development corporation exercises a right of first or
second refusal pursuant to subsection d. or f. of this section, the foreclosure
sale shall be deemed concluded and the person or corporation shall be deemed to
be the successful bidder and shall be subject to the applicable provisions and
procedures of this section.
���� j.� (1)� A nonprofit community
development corporation that successfully bids on the purchase of a residential
property in a sheriff's sale and satisfies the conditions set forth in
subsection h. of this section shall be subject to the fines assessed pursuant
to paragraph (3) of this subsection if the nonprofit corporation does not:
���� (a)�� restore as need be and
sell the property to a household earning no more than 120 percent below area
median income or rent the property as an affordable housing unit to a household
who earns no more than 100 percent below area median income, if the property is
vacant or abandoned at the time of the sheriff's sale; or
���� (b)�� if the property is
occupied at the time of sale by either a tenant or the foreclosed upon
defendant with whom the nonprofit community development corporation does not
already have an agreement pursuant to subsection f. of this section, the
nonprofit community development corporation shall negotiate in good faith with
the foreclosed upon defendant or tenant on an affordable lease schedule that
will allow the foreclosed upon defendant or tenant to continue to occupy the
property should the foreclosed upon defendant or tenant desire to do so.� If
after 120 business days the foreclosed upon defendant or tenant does not
respond to the requests of the nonprofit community development corporation to
negotiate, the corporation may bring an action in a court of competent
jurisdiction to remove the foreclosed upon defendant or tenant.� If removal has
successfully occurred, the nonprofit community development corporation shall
comply with the requirements of subparagraph (a) of paragraph (1) of this
subsection.
���� (2)�� A nonprofit community
development corporation that successfully bids on the purchase of a residential
property and satisfies the conditions set forth in subsection f. of this
section shall ensure that, in any future sale of the property pursuant to subparagraph
(a) of paragraph (1) of this subsection, the property be subject to a renewable
deed restriction, with the minimum number of affordability years being 30 years
and with the option to renew, requiring any future property owner to sell the
property to a household earning no more than 120 percent below area median
income or rent the property as an affordable housing unit to a household who
earns no more than 100 percent below area median income.
���� (3)�� A nonprofit community
development corporation that successfully bids on and completes the purchase of
a residential property in a sheriff's sale and satisfies the conditions set
forth in subsection f. of this section and fails to meet the requirements of
this subsection shall be assessed a fine by a court of competent jurisdiction
of up to $100,000 for the first violation, and $500,000 thereafter for each
subsequent violation.� If the appropriate sheriff's office, county
administrative agent, or affordable housing administrative agent that is hired
by the county determines based upon its oversight that there has been a
violation of this subsection, the sheriff's office, county administrative
agent, or affordable housing administrative agent shall bring an action in a
court of competent jurisdiction so that the sheriff's office, county
administrative agent, or affordable housing administrative agent can pursue
enforcement of penalties for the violation.� If the nonprofit community
development corporation dissolves, the deed of the residential property shall
be transferred to another nonprofit community development corporation who shall
be bound by the requirements of this subsection.
���� k.��� In the case of a
residential property for which the successful bidder is subject to the
occupancy requirement pursuant to paragraphs (7) and (8) of subsection e. of
this section, the appropriate sheriff's office, county administrative agent, or
affordable housing administrative agent that is hired by the county shall
oversee the occupancy of the property, which may include the mailing of a
questionnaire to the successful bidder within 84 months following the sale or
requiring the bidder to respond to questions and submit documentation
evidencing the bidder's continued residence at the property using the proof of
residency documents provided pursuant to paragraph (5) of subsection e. of this
section.� If the appropriate sheriff's office, county administrative agent, or
affordable housing administrative agent that is hired by the county determines
based upon its oversight that there has been an occupancy violation, the
sheriff's office, county administrative agent, or affordable housing
administrative agent hired by the county shall refer the matter to the county
counsel's office to bring an action in a court of competent jurisdiction so
that the sheriff's office can pursue enforcement of penalties for the
violation.
���� l.���� Each sheriff's office
shall maintain information, written in plain language, regarding the program to
finance the purchase of residential property in a foreclosure sale in
accordance with this section on its Internet website, and in any other medium
used by the office to advertise a foreclosure sale, in a manner that is
accessible to the public.� Additionally, each sheriff's office shall display
information, written in plain language, regarding the Community Wealth
Preservation Program in its office in a manner that is conspicuous to the
public.� The information posted on a sheriff's Internet website or displayed in
a sheriff's office concerning the program shall further contain language
notifying the public that the program shall exclude those purchasing property
for investment purposes.� For any county in which the primary language of 10
percent or more of the residents is a language other than English, the
sheriff's office shall provide the information required by this subsection in
that other language or languages in addition to English.� The alternate
language shall be determined based on information from the latest federal
decennial census.
���� m.�� Any sheriff's sales
conducted virtually shall be subject to the provisions of P.L.2023, c.255
(C.2A:50-56a et al.).
���� n.��� Any penalty imposed
pursuant to this section may be recovered with costs in a summary proceeding
commenced by the appropriate sheriff's office pursuant to the "Penalty
Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).� Fifty
percent of any monies collected pursuant to this section shall be forwarded to
the municipality in which the foreclosed upon property is located to be
deposited in the affordable housing trust fund of the municipality for use on
low income housing or moderate income housing needs as defined in section 4 of
P.L.1985, c.222 (C.52:27D-304), to the extent the municipality maintains such a
fund, and if the municipality does not maintain such a fund, to the State
Treasurer, and shall annually be appropriated to the "New Jersey
Affordable Housing Trust Fund," section 20 of P.L.1985, c.222
(C.52:27D-320) for the purpose of developing and supporting housing programs
that create for-sale and rental affordable housing.� The remaining 50 percent
of any monies collected pursuant to this section shall provide for
administrative and enforcement costs, including costs incurred by the
appropriate sheriff's office, county administrative agent, or county counsel's
office, necessary to effectuate the purposes of this section.
���� o.��� The provisions of
P.L.2023, c.255 (C.2A:50-56a et al.) shall only apply to residential property
as defined pursuant to subsection p. of this section.
���� p.��� As used in this section:
���� "Area median income"
means the midpoint of a region's household income distribution, as determined
by the United States Department of Housing and Urban Development.
���� "Community Wealth
Preservation Program" means the program created by P.L.2023, c.255
(C.2A:50-56a et al.) to assist prospective owner-occupants, nonprofit community
development corporations, foreclosed upon defendants, next of kin of foreclosed
upon defendants, and tenants of foreclosed upon defendants in purchasing and
financing foreclosed upon residential properties in sheriff's sales with an
initial 3.5 percent deposit.
���� "Nonprofit community
development corporation" means a not-for-profit organization, whose
mission includes community revitalization through the restoration of vacant and
abandoned property to create or preserve affordable housing, as indicated in
the corporation's most recent form 1023 filing provided to the United States
Internal Revenue Service.
���� "Residential
property" means real property located in this State which is utilized as a
primary residence or dwelling, and shall not include any real property which is
acquired for investment, commercial, or business purposes or real property containing
more than four residential units.
���� "Upset price" means
the minimum amount that a foreclosed upon property shall be sold for in a
sheriff's sale as determined by the foreclosing plaintiff.
(cf: P.L.2023, c.255, s.1)
���� 6.� Section 1 of P.L.1999,
c.440 (C.40A:11-4.1) is amended to read as follows:
���� 1.��� Notwithstanding the
provisions of any law, rule, or regulation to the contrary, competitive
contracting may be used by local contracting units in lieu of public bidding
for procurement of specialized goods and services the price of which exceeds
the bid threshold, for the following purposes:
���� a.���� The purchase or
licensing of proprietary computer software designed for contracting unit
purposes, which may include hardware intended for use with the proprietary
software.� This subsection shall not be utilized for the purpose of acquiring
general purpose computer hardware or software;
���� b.��� The hiring of a
for-profit entity or a not-for-profit entity incorporated under Title 15A of
the New Jersey Statutes for the purpose of:
���� (1)� the operation and
management of a wastewater treatment system, a stormwater management system, or
a water supply or distribution facility of the type described in subsection
(37) of section 15 of P.L.1971, c.198 (C.40A:11-15), provided that competitive
contracting shall not be used as a means of awarding contracts pursuant to
P.L.1985, c.37 (C.58:26-1 et al.) and P.L.1985, c.72 (C.58:27-1 et al.);
���� (2)�� the operation,
management or administration of recreation or social service facilities or
programs, which shall not include the administration of benefits under the Work
First New Jersey program established pursuant to P.L.1997, c.38 (C.44:10-55 et
seq.), or under General Assistance;
���� (3)�� the operation,
management or administration of data processing services; or
���� (4)�� the operation and
management of a county hospital pursuant to the "Local Hospital Authority
Law," P.L.2006, c.46 (C.30:9-23.15 et al.);
���� c.���� (Deleted by amendment,
P.L.2009, c.4)
���� d.��� Homemaker--home health
services;
���� e.���� Laboratory testing
services;
���� f.���� Emergency medical
services;
���� g.��� Contracted food
services;
���� h.��� Performance of patient
care services by contracted medical staff at county hospitals, correctional
facilities and long-term care facilities;
���� i.���� At the option of the
governing body of the contracting unit, any good or service that is exempt from
bidding pursuant to section 5 of P.L.1971, c.198 (C.40A:11-5);
���� j.���� Concessions;
���� k.��� The operation,
management or administration of other services, with the approval of the
Director of the Division of Local Government Services;
���� l.���� Maintenance, custodial,
and groundskeeping services;
���� m.�� Consulting services;
���� n.��� Emergency medical
billing services;
���� o.��� Property appraisal
services;
���� p.��� Reassessment or
revaluation services;
���� q.��� Grant writing services;
���� r.���� Animal control
services;
���� s.���� Private on-site
inspection agency services, as may be authorized by rules and regulations
adopted by the Department of Community Affairs
;
����
t.���� Pursuant to section
2 of P.L.��� , c.��� (C.������� ) (pending before the Legislature as this
bill), electronic, online foreclosure sales of real estate conducted by any
sheriff or person authorized or required by statute
.
���� Any purpose included herein
shall not be considered by a contracting unit as an extraordinary unspecifiable
service pursuant to subparagraph (ii) of paragraph (a) of subsection (1) of
section 5 of P.L.1971, c.198 (C.40A:11-5).
���� As used in this section,
"stormwater management system" means the same as that term is defined
in section 3 of P.L.2019, c.42 (C.40A:26B-3).
(cf: P.L.2022, c.139, s.3)
���� 7.� This act shall take effect
on the first day of the second month next following enactment.
STATEMENT
����� This bill, known as the
"
New
Jersey Online Foreclosure Sale Act,
"
requires
the sale of foreclosed-upon property in an electronic, online forum that is
open to the public by any sheriff or other authorized officer or person
authorized or required by statue, court directive, or other law to do so.� The
conducting of real estate sales online could attract more bidders and result in
higher purchase prices, which would benefit both creditors and debtors in New
Jersey.� The bill is not to alter the timeline of foreclosure sales but, except
as to requiring the sheriff or other officer or authorized person conducting
the real estate sale to publish notice of the time and place of the sale online
on the Internet website at which the sale will be conducted, substantially
changes the notice requirements pertaining to the foreclosure process.
�����
The bill authorizes a
county to contract with a vendor for online foreclosure sale services on behalf
of a sheriff, or other officer or person authorized or required to sell real
estate, to conduct an online foreclosure sale of real estate.� As the needs and
requirements of counties may vary, this bill provides authority to contract for
the services and requirements suited to a particular county, which may include,
but are not limited to: types of services; fee amounts; method of charging a
fee in the auction; recovery maximization; record-keeping requirements; and
security requirements.� Further, the bill enables a county or municipality to
procure electronic, online real property foreclosure services through
competitive contracting.� The bill requires the track record of vendors in
creating competitive auctions for the benefit of debtors and lenders be
considered in the evaluation and ranking of submitted proposals of service
providers.�
����� The bill requires that the total of all
fees charged by a vendor to a bidder, sheriff, or other officer or person
authorized or required to sell real estate are not to exceed $1,000 per
auction.� The bill also requires that any fees charged by a vendor are to be
taken directly from the purchaser�s deposit with the vendor or the plaintiff�s
deposit with the sheriff, and are not to reduce or impact the collection of
sheriff�s fees.
����� The bill requires the sheriff or other
officer or person conducting the
electronic, online foreclosure sale
,
and the contracted vendor, to:
����� (1)� require each prospective bidder to
verify their identity through an identification verification process prior to
placing a bid;
����� (2)� require a person seeking to bid
online to complete a registration process, which is to include the provision of
information necessary to properly identify the bidder, contact the bidder, and
complete the sale of the property; and
����� (3)� obtain from the successful bidder
certain contact information, identification, business registration information,
and information necessary to be checked against the federal Office of Foreign
Assets Control Sanctions List prior to finalizing the purchase of the property.
����� The bill allows payment of the 20 percent
deposit by the successful bidder to occur either immediately upon the
conclusion of the foreclosure sale, or within a timeframe established by the
sheriff regarding online sales.� For both payment of the 20 percent deposit and
payment of the balance of monies due when the sheriff�s office delivers the
fully executed deed to the bidder, the bill removes the requirement that
payment be made in either cash or certified check.� The bill also allows the
sale to resume without the reposting of the online sales notice if the
successful bidder is in default or fails to provide the funds as required.�
����� Finally, the bill provides that
if an online foreclosure auction
format is used, a vendor is required to provide a non-electronic option for
bidders, which may include a paper bid packet.
�����
This bill is to
take
effect on the first day of the second month following enactment.