Dubiln Packard

foreclosure

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Landlords Evict Tenants During COVID-19 Against New Jersey Eviction Moratorium

Essex County Rent Court

Some New Jersey landlords have been evicting tenants during COVID-19 against the New Jersey Eviction Moratorium put in place by Governor Murphy in March.

Unscrupulous landlords have been getting away with intimidating tenants and evicting them from their homes at a time when they have nowhere to turn.

Many New Jersey residents have lost employment or have had their hours reduced due to the COVID-19 pandemic. New Jersey’s governor, knowing people would be effected by a loss of employment and then may not be able to pay rent, acted to prevent these evictions by putting into place a New Jersey Eviction Moratorium.

Some heartless landlords try to evict a tenant for non-payment anyway taking advantage of the tenent’s lack of knowledge of the moratorium.

Judges Should Step In

A typical landlord tenant hearing has the homeowner on one side and a aggressive lawyer on the other side bullying the tenant into agreeing to move out to avoid having to pay back-rent while judges stand by doing nothing to help the tenant when the judge knows full well there is a moratorium in place.

This should not be allowed to happen during this COVID pandemic with mass unemployment due to no fault of the tenants.

I blame judges for not putting a foot down when they know all too well there is a eviction moratorium in place. I understand Judges refrain from offering legal advice to a litigant, especially one who is not represented by counsel, but to allow an agressive landlord to throw someone out of their home during this very uncertain time just should not be allowed to happen.

Judges should take a stand and dismiss cases while the moratorium is in place.

The NJ State Assembly Should Act

If judges aren’t going to take a stand, the NJ State Assembly should enact legislation preventing landlords from filing eviction with heavy fines for doing so to give it teeth.

Any landlord that files for eviction while the moratorium is in place should be fined the equivalent of one month rent for filing the case and the case should automatically be dismissed by the clerk of court.

Governor Murphy Enacts Anti-Eviction Moratorium

In March, when the pandemic hit New Jersey hard, Governor Murphy put into place several Executive Orders starting with Executive Order 103 on March 9, 2020 in which he declared a State of Emergency and Public Health Emergency effective immediately on that day. On March 19, 2020, Governor Murphy signed Executive Order 106 enacting a moratorium on removal of people form their homes due to tenant evictions or foreclosures.

Murphy Extends to Anti-Eviction Moratorium

Every month starting April 1, the governor has extended the State of Emergency and Public Health Emergency. Once again On July 2, 2020, Governor Murphy extended The State of Emergency and Public Health Emergency through Executive Order 162.

Each of these Executive Orders extends the anti-eviction moratorium for “two months following the end of the Public Health Emergency or State of Emergency established by Executive Order No. 103 (2020), whichever ends later….”

With the July 2 Order extending the State of Emergency for 30 days, this extends the moratorium through September 30, 2020.

I expect the Governor to extend the Order at least once again in August but we will wait and see how things go. He is under a lot of pressure from Trump to get things back to normal although, thankfully, the Governor has taken a conservative approach to things.

Should you find yourself in this situation, you now know to tell the judge there is a moratorium in place and there can be no eviction.

Good luck

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New laws to address New Jersey Foreclosure Crisis

Governor Phil Murphy signed on April 29, 2019 new laws to address New Jersey foreclosure Crisis. These new laws will help New Jerseyans struggling with the state’s highest-in-the-nation foreclosure rate. The new laws will assist homeowners facing the prospect of foreclosure and pave the way for community revival by addressing blight. Many of the measures were recommended in a September 2018 report by the Special Committee on Residential Foreclosures, which was created by Chief Justice Stuart Rabner.

“The foreclosure crisis has hurt our economy and jeopardized economic security of too many New Jersey families,” said Governor Murphy. “Our communities cannot succeed while vacant or foreclosed homes sit empty or while families live in limbo. I am proud to sign these bills into law today and get New Jersey closer to ending the foreclosure crisis.”

Among the new laws, Governor Murphy signed A664, which codifies the Judiciary’s Foreclosure Mediation Program into law, creating a long-term, permanent program that will not only increase the number of people entering mediation, but also ensure that homeowners receive housing counseling assistance to help provide them with the best possible outcomes in the foreclosure process.

“The foreclosure crisis hit the families of Atlantic County harder than almost any county in the nation. These bills offer a better path for the region and hope for families in despair,” said Special Counsel Jim Johnson. “It’s a vital and important step forward.”

Another important law is S3464 which requires the sheriff to conduct a foreclosure sale within 120 days of the sheriff’s receipt of a writ of execution, instead of scheduling a closing sale within that time frame, as currently provided by the act. The bill also allows the Office of Foreclosure within the Administrative Office of the Courts to issue an order to appoint a Special Master to hold foreclosure sales for one or more properties within a vicinage. The bill also clarifies that, to convey the foreclosed property to the purchaser from the sheriff’s sale, the plaintiff’s attorney is required to prepare, and the sheriff’s office is required to use, the standard form of deed that is set forth in the “Fair Foreclosure Act.”

Perhaps most important, the bill also revises the statute that governs the process for adjournments in connection with sales of real estate by virtue of an execution. The bill provides that a sheriff or other officer conducting the sale may make up to four adjournments, two at the request of the lender and two at the request of the debtor, instead of the total of two adjournments that the statute currently allows. The bill provides that these adjournments shall not exceed 30 calendar days each, instead of the 14 calendar days currently provided for in the statute. As currently provided in the statute, a court of competent jurisdiction may, for cause, make further adjournments.

The Governor signed the following nine bills into law:

  • A664 – Codifies the Judiciary’s Foreclosure Mediation Program; dedicates monies from foreclosure filing fees and fines.
  • A4997 – “Mortgage Servicers Licensing Act.”
  • A4999 – Requires filing of certain creditor contact information with residential mortgage foreclosure complaint and lis pendens.
  • A5001 – Revises statute of limitations for residential mortgage foreclosures.
  • A5002 – Permits certain planned real estate developments to file certain liens; concerns limited priority of certain liens.
  • S3411 – Requires receivership appointment application prior to certain foreclosure actions; requires notice of intention to foreclosure on residential mortgage to be filed within 180 days prior to commencing foreclosure; limits reinstatements of dismissed mortgage foreclosure actions.
  • S3413 – Makes certain changes to summary action foreclosure process under “Fair Foreclosure Act.”
  • S3416 – Clarifies that “New Jersey Residential Mortgage Lending Act” applies to certain out-of-state persons and involved in residential mortgage lending in the State.
  • S3464 – Revises certain procedures for real estate foreclosure sales; alters adjournment of sale process.

The change in the adjournment time from 14 to 30 for each of the two adjournments available to homeowners provides for additional time often vital to helping save their homes at the last minute prior to a sheriff sale.

For more information on adjourning a sheriff sale, see my article How to Stop or Adjourn A Sheriff Sale in New Jersey and for more information and other articles in my sheriff sale series see Sheriff Sale Help.

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5 Easy Ways to Spot A Foreclosure Scam in New Jersey

6 easy ways to spot a foreclosure scamIt is easy to fall victim to a foreclosure scam. You may be desperate and in fear of losing your home and are susceptible to such foreclosure scams. Foreclosure scams are tempting and sound like sensational offers and easy to fall for. High pressure phone sales people promise to come to your rescue like a superhero. And they often excite you with too-good-to-be-true guarantees of saving your home.

But, don’t trust these villains disguised.

Here are the 5 easy ways to spot a foreclosure scam in New Jersey:

Beware of the companies/individuals that:

1.  Guarantee that they can stop your foreclosure or get you a loan modification.

2. Are calling from outside of New Jersey and using high-pressure sales tactics.

3.  Encourage you to sign over the deed to your home, or sign any paperwork or agreements that you do not understand or haven’t investigated thoroughly.

4. Give you the impression that what they are selling is government-backed, by using the phrases “official government” or “government-approved” home loan modification.

5. Immediately request to charge your credit card number online or via phone even though you have not been working with this person and do not know them.

Don’t trust companies or individuals that make claims that sound so good they are almost unbelievable. Even if all they are offering is advice, there are free alternatives out there. HUD-approved counseling agencies will  give you advice without requesting a dime from you. Scam artists will charge you hundreds of dollars for advice that you can get for free.

Follow our advice and watch out for the 5 red flags.

If you think that you have fallen victim to a foreclosure scam, you can report it at www.preventloanscams.org by filling out a Loan Modification Prevention Network’s online complaint form and find out how to get justice. Or, you can call 1-(888)-995-HOPE (4673) and talk to a counselor.

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The Future of Foreclosure

The Future Of Foforeclosure, new jersey, lawyerreclosure In the United States

The truth is, the foreclosure crisis is not over.

The end of the Great Recession, on the books recorded as June 2009, seems to be a premature end-date for those still feeling first-hand the financial backlash of the economic downturn.

Homeowners suffered significantly during the Great Recession; foreclosure rates skyrocketed, many of which compared to the foreclosure rates during the Great Depression (to read more about this, click here); and it has become evident over the years that things are going to take a long time to return back to normal.

While foreclosure rates have decreased since their acme during the Great Recession, they still remain over three times their normal levels (as David Dayen noted). Further, those whose loans exceed the value of the home- known as being underwater, continue to make up an enormous amount of homeowners; their number exceeded 8.7 million in 2015.

RealtyTrac found that for the first time in 3 years, foreclosure auctions were increasing, along with foreclosure filings. The signs spell out trouble- but the government and polls continue to say that we are out of the recession and that things are looking up.

The Problem Began Before The Recession Hit

The way that mortgages were handled changed significantly during the housing bubble. Many brokers sold too-good-to-be-true mortgages during the housing bubble to people who normally wouldn’t qualify: they preyed on people with low wages, people of Latin American decent, African Americans, those who were immigrants, working-class people making minimum wage. Interest rates were often incredibly low, and adjustable rate mortgages with initially low teaser rates were common; but many of these rates will be resetting to higher ones, rates which many homeowners will not be able to afford. Some economists believe another foreclosure spike is imminent.

Everyone is working against the homeowner.

Although many homeowners will have the desire to save their homes from foreclosure, it is evident that the financial institution may be working against them. Because of increases in the price of real estate, those whose homes are in foreclosure face the possibility of the bank seizing their home; it is now more financially favorable for the banks to just seize and sell your home, rather than helping you through the foreclosure process. This practice is seen going on all over the country. Banks want to settle the mortgages and foreclosures once and for all, and their way of handling this is by driving the homeowner into eviction.

To make matters worse, the loan servicers, those in charge of approving and denying homeowners for loan modifications in order to avoid foreclosure, continue to make it nearly impossible to obtain a modification. (To read more details about the corruption of loan servicers, click here). Many servicers continue to deny homeowners for no reason, despite the fact that they may qualify, and mishandling the documentation that borrowers send in, and neglecting to carry through with loan modification agreements that were reached with the homeowner.

Maybe most aggravating, is the fact that there are no laws governing their actions, and no penalties to face for committing such shameful wrongdoings to the homeowners.

What’s To Come?

It is likely that those dealing with mortgages from the time during the housing bubble will continue to suffer down the road.

National recovery has been slow, and even slower in those areas that received the greatest blows; which is inherent in the nature of the beast– subprime lenders targeted people in areas that were very poor to begin with, so when the recession hit, the people struggled to a greater extent than those living in wealthier areas.

It is unfortunate that those who suffered the greatest in the Great Recession are being helped the least, and that no one wants to step up to the plate and take the blame. Taking the blame may actually require them to try and fix the problem, instead of just pointing fingers. And who in government or from the banks wants to do that? It’s much easier to sit idly by while people continue to struggle.

 

 

 

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HAMP: The Obama Administration and The Banks’ Love Child

HAMP
Timothy Geithner, U.S. Secretary of The Treasury under the Obama Administration

HAMP: The Obama Administration and The Banks’ Love Child

When the economy was hit hard, the people turned to their government for help.

Economists stated that during the period from  2007 to 2009, the bottom 90% of Americans experienced the loss of one-third of their wealth, most of which was concentrated in their homes. After the housing market collapsed, millions of Americans were hurt deeply, and looking for financial healing. They turned to their government for help.

Cram Down: A Policy For the People

The government had a couple of solution plans drawn up to try to help those who were hit hardest by the recession: homeowners. The first of which, largely supported by Obama during his campaign for the presidential election, was “cram down.” Cram down gets its name from the action that the bankruptcy judge may take in reducing or eliminating debts that a borrower cannot pay; it is a common practice in bankruptcy court. In the context of foreclosure, it would force down the value of the debt to the value of the home; the logic of this being, the bankruptcy judge can write-off or reduce the debts that the homeowner cannot pay off– allowing an underwater homeowner to keep their home when they normally wouldn’t be able to.

HAMP: A Protection Plan For Financial Institutions

A number of legislators and citizens alike supported cram down as a way to remedy the foreclosure crisis. It was a plan for the people, and in the homeowner’s best interest. But, ultimately, nothing was done to get it passed. Obama dropped the idea in favor of a different policy, the Home Affordable Modification Program (HAMP).

While cram down was a plan for the people, HAMP was a protection plan for the financial institutions. HAMP was born out of negotiations between Obama’s economic team and the financial industry. Notice how I said the financial industry;  homeowners were nowhere in sight, their interests and needs were not heard. But, what rang through loud and clear in these discussions were the wants and needs of the banks.

All Of The Power In The Hands Of The Banks and Loan Servicers

HAMP granted all of the power to the financial institutions. Mortgage companies were offered small incentives to modify loans for borrowers who were susceptible to going into foreclosure. But, at the end of the day, it was the mortgage companies who decided whose loans to modify (not the bankruptcy judges who were arguably much less partial in the situation). As it turns out, it was not in the mortgage companies’ best financial interest, to modify homeowners’ loans. These companies were able to increase their revenue if they kept homeowners in limbo, and eventually allowed the loans to default and proceed through to foreclosure and the eventual auction of the home. This practice allowed them to keep collecting payments and charging the homeowners various other fees, while on the outside giving the appearance of helping them.

To read more about the scandalous activities of loan servicers and the corruption that went on behind the scenes, read: ( Loan Servicers: The Face Of Corruption).

And to compound the issue of it not being in loan servicers’ best interest to give loan modifications, the problem was only worsened by the strict protocol that the mortgage companies only approve of borrowers they deemed deserving. The Treasury Department, who pulled the strings of their puppets, the banks/servicers, made it very clear that the loan services must only reward those who were “deserving” of loan modifications (known as a “hardship”).

HAMP: A Band-Aid For The Financial Crisis, Not A Real Solution

To the government, HAMP was merely a band-aid for the financial crisis; for a short period of time, it retarded the progression of foreclosures. And to the added benefit of The Treasury and financial institution as a whole, it gave banks the power of controlling the timing of foreclosures, so that millions of homes were not foreclosed upon at the same time, allowing them to absorb their inevitable losses at a slower rate. To them, even though there was chaos, at least it was controlled.

Journalist, David Dayen, stated that in a period of 5 years from the time that the policy was put into place, it only helped one-tenth of at-risk homeowners avoid foreclosure; at a time when over 10 million were at risk of losing their homes to foreclosure (to read more from Dayen at Bill Moyer’s site, click here).

Today, the red tape and corruption still lingers. Homeowners continue to struggle obtaining loan modifications, being bounced around to different departments, constantly sending in the same documentation and still getting denied even when they qualify. HAMP, the solution designed to help homeowners continues to plague them. This especially holds true to those still dealing with old loans from the time Pre-Recession, many of which continue to be problematic 8 years later. It can still be exceedingly difficult to get a loan modification, many loan servicers continue to make it extraordinarily difficult.

From the time of its conception, the solution that the government and financial organization came up with was never to benefit individual homeowners; it was a scapegoat when the alternative cram down policy would’ve caused too much financial loss for the banks.

But, who looks out for the middle class then? Those who suffered the greatest financial hardship when the recession hit?