NJ Families Deserve Fair Shot At Foreclosure Sales, Lawmakers Say

NEW JERSEY — When a New Jersey family loses their home to a foreclosure, they should get a fair shot at buying it back – not just the people who want to “flip” it for profit, a trio of Democratic state lawmakers say.

The New Jersey Assembly recently passed A-793 by a margin of 46-30. According to its sponsors, it’s an effort to “reduce the loss of family wealth brought on by foreclosures.”

If it becomes law, the bill will give homeowners in foreclosure – or their next of kin – the opportunity to purchase back their home at a sheriff’s foreclosure sale. It would establish a special, regulated program that reduces the required deposit amount from 20 percent to 3.5 percent, and expand the number of days all the purchase price dollars are due from 30 to 90 days.

The bill would also require anyone who purchased property with financing to occupy the residence for an 84-month period, and fine investors who misuse the program to “flip” properties.

It would take effect 90 days from the date of enactment.

The legislation now heads to the state Senate, where it has been referred to the Senate Community and Urban Affairs Committee.

The Assembly bill’s sponsors, Britnee Timberlake, Cleopatra Tucker and Verlina Reynolds-Jackson, offered statements of support for the proposed law, which they’ve dubbed the Community Wealth Preservation Program.

Timberlake, who represents the 34th district, said New Jersey leads the country in housing foreclosures – especially in its urban areas.

“Black and Brown wealth is hemorrhaging through the loss of foreclosed property, and the people who live in the community often do not have deep enough pockets to even participate in the foreclosure process,” Timberlake said.

The legislation also “levels the playing field” for people who want to purchase an abandoned home to restore and live in for a minimum of seven years, instead of flipping the home, she said.

Tucker, who represents the 28th district, said the current process for buying foreclosed houses favors companies that have the money to purchase property at sheriff sales and resell it for a profit.

“By enacting the changes detailed in this bill, we can give people vested in the community a better chance of securing a home at these sales,” Tucker said.

Reynolds-Jackson, who represents the 15th district, said that making housing “accessible and affordable” is a critical need for many people in the Garden State.

“We know what barriers stand in the way of a homeowner’s success at sheriff sales, and with this legislation we can make a difference,” Reynolds-Jackson said.

• Read More: Foreclosed Homes Should Go To Families, Not 'Flippers,' Lawmakers Say

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