Real Estate in West Orange
Marsha Bowen Washington
973-510-0014973-510-0014

What You Need To Know If You Live In A Foreclosed Home

Lenders are foreclosing on homes all across New Jersey with both tenants and owners still living in them.  As they continue to reside in these homes, lenders are listing them for sale at auctions in hopes that buyer’s will purchase tenant occupied homes site unseen.  The buyer’s are also responsible for scheduling the court evictions to have the owners or tenants removed once they took ownership.

The 2009 Federal law (Protecting Tenants at Foreclosure Act) that upheld existing leases and required that tenants in foreclosed properties be given 90 days’ notice before being evicted expired the end of 2014.   Depending on the servicer or lender, they will make their own policy.  Wells Fargo is alleged to no longer follow the guidelines and Bank of America will decide on it’s own policy going forward.

With the law’s expiration, mortgage servicers will have to maneuver a patchwork of state and local regulations. Just nine states and Washington, D.C., currently offer the same protections as the expired federal law, while 17 states have no specific tenant protections or allow servicers to evict immediately following a foreclosure sale.

To be fair, many servicers, including Wells Fargo, offer relocation assistance to tenants in foreclosed properties. And both Fannie Mae and Freddie Mac will continue to follow the federal law for their respective REO inventories. The Federal Housing Administration (FHA) typically requires that properties be vacant when they are turned over to the agency after a foreclosure.

A few states including Massachusetts, New Jersey and Rhode Island have “just cause” laws, where a foreclosure is not considered a valid reason to evict a tenant.    If you are a tenant or foreclosed owner in New Jersey,  you should know your rights under NJ law as a tenant, owner or landlord.

mortgage delinquency

 

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About Marsha Bowen Washington

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Marsha Bowen Washington

Realtor/Sales Associate

marshabwashington@yahoo.com

973-510-0014973-510-0014 main

Coldwell Banker Residential Brokerage

2 E. Mt. Pleasant Avenue Livingston, NJ 07039

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5ChristinaPamplin

Marsha was highly professional and knowledgeable about the real estate market. She made me feel very confident that I was in good hands. When I began to feel nervous and stressed, she stepped in and assisted with following up with my lender and attorney to... (more)

5Yetta Armstrong

Marsha Bowen Washington is the real deal! She's knowledgeable, friendly, patient, committed, and caring. My real estate venture was very challenging and Marsha stuck with me throughout the whole process even though I extended my search outside of her... (more)

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if Marsha had anyother skills besides real estate, my husband and I would use her in those areas as well. She has such calmness that the worst clamity, seems nothing when she is dealing with things. It was the most effortless journey and a pleasure working... (more)

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