New Jersey provides for termination of public health emergency declared by Governor to address COVID-19 pandemic
Except certain executive orders, directives, and powers will remain in effect temporarily. (NJ AB 5820)
Assembly Bill 5820, signed into law on June 4, 2021, terminates the public health emergency declared by the Governor to address the Pandemic, yet, leaves effective thirteen (13) Executive Orders that would have expired upon termination of the public health emergency declaration. The thirteen Executive Orders will remain in effect until January 1, 2022. One of the thirteen Executive Orders is Executive Order 106, instituting the Eviction Moratorium that will now expire on January 1, 2022. For now, no evictions may take place in the State of New Jersey for the remainder of 2021.
On June 24, 2021, the New Jersey Legislature passed S3691/A5685, which provides financial relief to tenants and provides certain protections from eviction. This bill has been sent to the Governor. The bill provides financial assistance for tenants based upon income level and provides certain protections from eviction for those with the inability to pay rent and who have been or are impacted by the COVID-19 pandemic. This bill also revises Eviction, foreclosure prohibited during certain emergency circumstances, N.J.S.A. 2A:18-59.3, which became law March 2020. Among the newly added provisions to N.J.S.A. 2A:18-59.3, the eviction moratorium, Executive Order 106, prohibiting the removal from a residential property as a result of a foreclosure will now expire November 15, 2021.
The Maryland foreclosure process reopened July 1st when DLLR reopened the portal to allow the filing of the NOI. As a reminder, for those servicers that sent the forbearance letters provided for in Governor Hogan’s order 20-10-16-01 and thereafter restated they will effective July 1st, be able to move forward with the mailing and certification of the mailing of the NOI. This is for non-GSE or government related loans that are not subject to moratoriums which have been extended through July 31, 2021.
Those servicers that did not elect to send the pre-foreclosure 180 day forbearance notice will not be able to proceed until the State of Emergency terminates. The State of Emergency in Maryland is currently scheduled to terminate August 15, 2021.
The prior emergency orders provide that those lenders who offered forbearance agreements, as outlined below, would be able to proceed when DLLR opened the portal. The portal is now going to open forty-five (45) days prior to the termination of the State of Emergency:
The Florida office is providing you with the following case law update for June 2021. These updates are summaries of cases that impact foreclosure issue cases. We have provided the general holding of the case. If any case is of interest to you, please let us know. We are happy to provide a detailed analysis of the facts and holding of the case and how they might apply to your specific situation.
The bill clarifies recording requirements for clerks with and without eRecording Systems in place. If eRecording system is in place, the clerk shall follow the provisions of the Uniform Real Property Electronic Recording Act. The bill further provides that if a clerk does not have an eRecording System, the clerk shall record a legible paper copy of an electronic document, provided that such copy otherwise meets the requirements for recordation and is certified to be a true and accurate copy of the electronic original by the party who submits the document for recordation.
Additionally, the bill requires an electronic notarial certificate to include the county or city in the Commonwealth where the notary public was physically located and indicate whether the notarization was done in person or by remote online notarization, defined in the bill as an electronic notarization where the signer is not in the physical presence of the notary. The bill also adds additional forms of "satisfactory evidence of identity" when a notary is using video and audio communication. Document Link
The new state bill is increasing the period for a foreclosure sale notices from 14 to 60 days and is requiring such notices to include information about the housing counseling. It also requires that an affidavit signed by the party that provided notice of the sale to the owner confirming that such notice was sent to the owner, with a copy of such notice attached to the affidavit. The foreclosure-related notice requirements will go into effect on October 1st, 2021.
This bill also provides several additional protections to the owners and tenants of manufactured homes, including restrictions for enforcement of judgment liens when the debt is less than $25,000 and providing additional notices about state housing rights and counseling.
Servicers shall be aware that the modified pre-foreclosure sale notice requirements will extend the overall foreclosure timelines. Document Link
The Pennsylvania Housing Finance Agency sent out an email blast to lenders’ counsel stating that if monies designated under PMAP (the Pandemic Mortgage Assistance Program) can’t be applied to the months designated under the program by the lenders, the funds are to be returned. Please contact Christopher DeNardo for assistance in PA and NJ.
Cryan-Singleton Bill (S.B. 2961) mandates that, at the time the lender/servicer sends a Notice of Intent to Foreclose, a borrower must receive written notice from the lender of the option to participate in the NJ Foreclosure Mediation Program, and again when a mortgage foreclosure complaint has been filed. This notice must include information that obtaining a trained foreclosure prevention counselor is a requisite to participating in mediation, and that the borrower is not required to pay any fees to participate in the mediation program. The Notice has to be in English and Spanish. This law will be effective September 1, 2021.