Renters Need Not Leave When Foreclosure Hits

TRENTON — The state Public Advocate Ronald Chen wants New Jersey renters to know that they can’t be evicted from their homes just because the building in which they are living is in foreclosure.
Under New Jersey Law, tenants in good standing cannot be evicted from their homes just because the home or apartment building is in foreclosure.
“The law in this state does not allow eviction of a tenant solely because the property in which they are living is in foreclosure,” Chen said in a release, noting that in 1994, the state Supreme Court held that the New Jersey Anti-Eviction Act protects tenants even when the property where they live is in foreclosure or has been foreclosed.
Despite this safeguard, many tenants are being pressured to leave their homes, said Chen. After lenders acquire properties through foreclosure, they often hire agents – mostly real estate professionals, asset/property managers, and sometimes attorneys – who contact tenants in an effort to get them to leave.
These agents sometimes threaten eviction and offer tenants a “cash for keys” settlement (if they leave they will get money; the sooner they leave the more money they will get). During this process, lenders and their agents generally fail to inform tenants that they have the legal right to remain in their homes. These misleading pressure tactics often cause tenants to move out.
Tenants who are being threatened with eviction because of a foreclosure, should contact the Public Advocate, Office of Citizen Relations at 609-826-5070.
According to figures from the Administrative Office of the Courts, the state has seen a drastic rise in foreclosures over the past several years. In Cape May County, foreclosures have increased from 256 in 2005, to 381 in 2006, 621 in 2007, and 1,029 in 2008.
The Department of the Public Advocate is charged with making government more accountable and responsive to the needs of New Jersey residents, especially our most vulnerable citizens.