HIGHTSTOWN, N.J. (10/28/15)--In order to inform state lawmakers about the effects of pending foreclosure-related legislation, the New Jersey Credit Union League (NJCUL) is surveying member credit unions (The Daily Exchange Oct. 26).
“We’re collecting this information so we can inform legislators how these proposals complicate the foreclosure process, which already can take up to three years to complete,” said Chris Abeel, NJCUL vice president of corporate and governmental affairs.
Credit unions already must cover property taxes and insurance on foreclosed properties. The proposed rules would increase credit unions’ maintenance responsibilities, including satisfying municipal codes, to those beyond what homeowners are held to.
The additional costs hurt lenders and future borrowers by increasing the financial burden on the financial institution, Abeel noted.
Legislative proposals include:
The league was successful in gaining amendments to an earlier foreclosure-maintenance bill, which now holds lenders to the same standards as homeowners.
According to a recent RealtyTrac report, New Jersey's foreclosure rate was the highest in the nation in the third quarter of 2015. New Jersey’s foreclosure activity increased 27% in the last three months compared with the same quarter last year. The number of foreclosure starts in the state dropped from a year ago, but scheduled foreclosure auctions and bank repossessions increased.