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WBK Industry News - State Regulatory Developments

New Jersey Establishes Process for Consideration of Short Sale Buyers’ Offers during Residential Mortgage Foreclosures

On July 29, 2017, the state of New Jersey passed a bill that establishes a process for the consideration of offers from short sale buyers during mortgage foreclosures.  The bill amends New Jersey’s “Fair Foreclosure Act” to require mortgage loan servicers to respond to a good faith offer from a seller, seller’s agent, or authorized third party to purchase a property through a short sale within 60 days of the date of the offer.

The bill also introduces definitions for “servicer”, “servicing”, and “short sales” to New Jersey’s “Fair Foreclosure Act.”

The bill is effective 60 days after enactment.

The full text of the bill can be found here.