A law enacted in 2010 called the New Jersey Foreclosure Fairness Act (“NJFFA”), found in N.J.S.A. 2A:50-69 to -71, offers valuable protections to residential tenants living in foreclosed properties. Specifically, new owners of a property acquired through foreclosure are required to serve residential tenants with a detailed written notice informing them of their tenancy rights under New Jersey law and where to send future rent payments.
Also, the NJFFA obligates foreclosing lenders to comply with additional reporting requirements, such as serving the municipal clerk (where the foreclosed property is located) with written notice of the commencement of a foreclosure case, and reporting to the Department of Banking and Insurance on a quarterly basis about the number of foreclosure cases initiated by the lender.
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Tenant’s Rights Under New Jersey Foreclosure Fairness Act