New Jersey § 2a:50-64

§ 2a:50-64.

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. (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. 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/․․․․․․․․․․․․․․․․․․․․․․․․․․․․․ 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. 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. 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). 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. 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. 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.