New Jersey § 2a:50-56

§ 2a:50-56.

a. Upon failure to perform any obligation of a residential mortgage by the residential

mortgage debtor and before any residential mortgage lender may accelerate the maturity

of any residential mortgage obligation and commence any foreclosure or other legal

action to take possession of the residential property which is the subject of the

mortgage, the residential mortgage lender shall give a notice of intention, which

shall include a notice of the right to cure the default as provided in section 5 of P.L.1995, c.244 ( C.2A:50-57 ), at least 30 days, but not more than 180 days, in advance of such action as provided

in this section, to the residential mortgage debtor, and, if the mortgage is secured

by a residence for which a restriction on affordability was recorded in the county

in which the property is located, the clerk of the municipality in which the subject

property is located, the municipal housing liaison, if one has been appointed by the

municipality pursuant to the regulations of the Council on Affordable Housing, and

the Commissioner of Community Affairs. For the purposes of this section, “ restriction on affordability ” means any conditions recorded with a mortgage or a deed which would limit the sale

of such property to income qualified households pursuant to the rules adopted to effectuate

the “Fair Housing Act,” P.L.1985, c. 222 ( C.52:27D-301 et al.). b. Notice of intention to take action as specified in subsection a. of this section

shall be in writing, provided to the Department of Community Affairs in accordance with subsection a. of

section 2 of P.L.2019, c.134 ( C.46:10B-49.2 ), sent to the debtor by registered or certified mail, return receipt requested, at

the debtor's last known address, and, if different, to the address of the property

which is the subject of the residential mortgage. The notice is deemed to have been effectuated on the date the notice is delivered

in person or mailed to the party. c. The written notice shall clearly and conspicuously state in a manner calculated

to make the debtor aware of the situation: (1) the particular obligation or real estate security interest; (2) the nature of the default claimed; (3) the right of the debtor to cure the default as provided in section 5 of P.L.1995, c. 244 ( C.2A:50-57 ); (4) what performance, including what sum of money, if any, and interest, shall be

tendered to cure the default as of the date specified under paragraph (5) of this

subsection c.; (5) the date by which the debtor shall cure the default to avoid initiation of foreclosure

proceedings, which date shall not be less than 30 days after the date the notice is

effective, and the name and address and phone number of a person to whom the payment

or tender shall be made; (6) that if the debtor does not cure the default by the date specified under paragraph

(5) of this subsection c., the lender may take steps to terminate the debtor's ownership

in the property by commencing a foreclosure suit in a court of competent jurisdiction; (7) that if the lender takes the steps indicated pursuant to paragraph (6) of this

subsection c., a debtor shall still have the right to cure the default pursuant to

section 5 of P.L.1995, c. 244 ( C.2A:50-57 ), but that the debtor shall be responsible for the lender's court costs and attorneys'

fees in an amount not to exceed that amount permitted pursuant to the Rules Governing

the Courts of the State of New Jersey; (8) the right, if any, of the debtor to transfer the real estate to another person

subject to the security interest and that the transferee may have the right to cure

the default as provided in P.L.1995, c. 244 ( C.2A:50-53 et seq. ), subject to the mortgage documents; (9) that the debtor is advised to seek counsel from an attorney of the debtor's own

choosing concerning the debtor's residential mortgage default situation, and that,

if the debtor is unable to obtain an attorney, the debtor may communicate with the

New Jersey Bar Association or Lawyer Referral Service in the county in which the residential

property securing the mortgage loan is located; and that, if the debtor is unable

to afford an attorney, the debtor may communicate with the Legal Services Office in

the county in which the property is located; (10) the possible availability of financial assistance for curing a default from programs

operated by the State or federal government or nonprofit organizations, if any, as

identified by the Commissioner of Banking and Insurance and, if the property is subject

to restrictions on affordability, the address and phone number of the municipal affordable

housing liaison and of the New Jersey Housing and Mortgage Finance Agency. This requirement shall be satisfied by attaching a list of such programs promulgated

by the commissioner; (11) the name and address of the lender and the telephone number of a representative

of the lender whom the debtor may contact if the debtor disagrees with the lender's

assertion that a default has occurred or the correctness of the mortgage lender's

calculation of the amount required to cure the default; (12) that if the lender takes the steps indicated pursuant to paragraph (6) of this

subsection, the debtor has the option to participate in the Foreclosure Mediation

Program following the filing of a mortgage foreclosure complaint by initiating mediation

pursuant to paragraph (2) of subsection a. of section 4 of P.L.2019, c. 64 ( C.2A:50-77 ). Notice of the option to participate in the Foreclosure Mediation Program shall adhere

to the requirements of section 3 of P.L.2019, c. 64 ( C.2A:50-76 ) and any court rules, procedures, or guidelines adopted by the Supreme Court. (13) 1 that the debtor is entitled to housing counseling, at no cost to the debtor, through

the Foreclosure Mediation Program established by the New Jersey Judiciary, including

information on how to contact the program; (14) 2 that if the property which is the subject of the mortgage has more than one dwelling

unit but less than five, one of which is occupied by the debtor or a member of the

debtor's immediate family as the debtor's or member's residence at the time the loan

is originated, and is not properly maintained and meets the necessary conditions for

receivership eligibility, established pursuant to section 4 of the “Multifamily Housing

Preservation and Receivership Act,” P.L.2003, c. 295 ( C.2A:42-117 ), the residential mortgage lender shall file an order to show cause to appoint a

receiver; and (15) 3 that the lender is either licensed in accordance with the “New Jersey Residential

Mortgage Lending Act,” sections 1 through 39 of P.L.2009, c. 53 ( C.17:11C-51 through C.17:11C-89 ) or exempt from licensure under the act in accordance with applicable law. d. The notice of intention to foreclose required to be provided pursuant to this section

shall not be required if the debtor has voluntarily surrendered the property which

is the subject of the residential mortgage. e. The duty of the lender under this section to serve notice of intention to foreclose

is independent of any other duty to give notice under the common law, principles of

equity, State or federal statute, or rule of court and of any other right or remedy

the debtor may have as a result of the failure to give such notice. f. Compliance with this section and subsection a. of section 2 of P.L.2019, c.134 ( C.46:10B-49.2 ) shall be set forth in the pleadings of any legal action referred to in this section. If the plaintiff in any complaint seeking foreclosure of a residential mortgage

alleges that the property subject to the residential mortgage has been abandoned or

voluntarily surrendered, the plaintiff shall plead the specific facts upon which this

allegation is based. g. If more than 180 days have elapsed since the date the notice required pursuant

to this section is sent, and any foreclosure or other legal action to take possession

of the residential property which is the subject of the mortgage has not yet been

commenced, the lender shall send a new written notice at least 30 days, but not more

than 180 days, in advance of that action. h. If the property which is the subject of the notice of intention to foreclose has

more than one dwelling unit but less than five, one of which is occupied by the debtor

or a member of the debtor's immediate family as the debtor's or member's residence

at the time the loan is originated, and is not properly maintained and meets the necessary

conditions for receivership eligibility, established pursuant to section 4 of the

“Multifamily Housing Preservation and Receivership Act,” P.L.2003, c. 295 ( C.2A:42-117 ), the residential mortgage lender shall file an order to show cause to appoint a

receiver. 1

Added as subsec. c.(12) by L.2019, c. 69, eff. Aug. 1, 2019, redesignated as subsec.

c.(13) by L.2019, c. 70. 2

Added as subsec. c.(13) by L.2019, c. 69, eff. Aug. 1, 2019, redesignated as subsec.

c.(14) by L.2019, c. 70. 3

Added as subsec. c.(12) by L.2019, c. 70, eff. April 29, 2019, redesignated as subsec.

c.(15) by L.2019, c. 70.