Trenton – Sheriff’s residential foreclosure sale procedures would be revised to make purchases more accessible to certain buyers under legislation, which cleared the Senate Community and Urban Affairs Committee this week. The legislation, which would create the “Community Wealth Preservation Program,” is sponsored by Senator Nia Gill.
“Homeownership is one of the best ways to build generational wealth but unfortunately for many New Jerseyans it is simply out of reach,” said Senator Gill (D-Essex/Passaic). “This legislation will make homeownership more accessible by removing the barrier large down payments place before individuals, whether they are looking to repurchase their home which has been foreclosed or purchase their first home at a sheriff’s sale.”
The bill, S-2130, would revise sheriff foreclosure sale procedures to allow certain bidders to provide a 3.5 percent deposit, instead of the 20 percent deposit which is currently required. To receive the reduced deposit rate, the bidder would have to occupy the home as their primary residence for at least 72 months.
Under the bill, a successful bidder who finances the purchase of the property would be required to complete eight hours of homebuyer education and counseling through a program provided by the US Department of Housing and Urban Development.
The bill was released from committee by a vote of 5-0.