TRENTON, N.J. — New Jersey's state legislature is considering charging lenders and servicers a $2,000 fee for every foreclosure they file in the state.
Under the New Jersey Homeownership Preservation Act, a creditor that issues a notice of intent to foreclose on a covered mortgage loan willl at the same time send in a certified check for $2,000 to be deposited into a trust fund. The trust fund will be used to help homeowners facing foreclosure, including paying for borrower counseling and providing funding for community groups' efforts to prevent borrowers from losing their homes.
Creditors can not pass the fee onto borrowers.
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Covered mortgage loans are generally defined as subprime loans.
The bill also calls for a six-month stay of foreclosure proceedings after a default notice has been so that borrowers can pursue a loan workout or refinancing.
The bill was recently passed by the Assembly's budget committee on an 8-3 vote.
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