Wisniewski Bill Increasing Time Homeowners Can Repurchase Foreclosed Homes Advances

WISNIEWSKI BILL INCREASING TIME HOMEOWNERS CAN REPURCHASE FORECLOSED HOMES ADVANCES

(TRENTON) - The Assembly Financial Institutions and Insurance Committee today unanimously released legislation Assemblyman John S. Wisniewski sponsored to extend the length of time provided to foreclosed homeowners to repurchase their property.

"Being foreclosed upon is a harrowing, emotional experience," said Wisniewski (D-Middlesex), a member of the panel.  "Events transpire so quickly that homeowners often can make a bad situation worse simply by making rushed decisions in a desperate effort to keep their home."

Under current law, county sheriffs are permitted to conduct sales of property after foreclosure proceedings have been completed.  In most cases, the foreclosed homeowner has the option to repurchase their property within 10 days, and the sheriff has the discretion to execute two 14-day adjournments of sale to give the foreclosed homeowner more time to repurchase their home.

The Wisniewski measure (A-2412) would extend the length of an adjournment of sale to 60 days, giving displaced homeowners a longer period of time in which to reclaim their property.  The committee amended the bill, changing the length of the first adjournment to 28 days and the second to 14 days.

Wisniewski said the measure is necessary in light of the recent collapse of the national subprime mortgage lending market, which contributed to a 34 percent increase in the rate of foreclosures in New Jersey in 2007.

"Displaced homeowners will benefit from adjournment extensions," said Wisniewski.  "It will give them the extra breathing room they need to decide whether they can afford to continue making payments on their home or whether they will need to seek other alternatives."

The bill, part of a comprehensive package to address the foreclosure crisis in New Jersey, now heads to the Assembly Speaker, who decides if and when to post it for a floor vote.

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