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In 2019, Governor Phil Murphy signed nine new laws that affect New Jersey foreclosures. The laws aim to help homeowners and reduce foreclosures. This article describes the law that relates to condominium and homeowner association lien super-priority.

A homeowner who lives in a “common interest” community, like a condominium or homeowner association neighborhood, is usually billed for dues and assessments. Not paying those bills could lead to a foreclosure, separate from a foreclosure for unpaid mortgage bills.

Associations are now entitled to “super-priority” liens covering six (6) months per year of unpaid  association bills. This means the association can file papers in a mortgage foreclosure case to get paid for back bills before the mortgage company gets paid. The association must take many steps to keep this priority.

NOTE: This new law does not apply to “co-ops” or cooperative housing communities.

For more information about other important sections of the laws, click on one of the topics below.

• Sheriff’s Sale Delays (N.J.S.A. 2A:50-64)
• Statute of Limitations (N.J.S.A. 2A:50-56.1)
• Foreclosure Mediation (N.J.S.A. 2A:50-56, N.J.S.A. 2A:50-74, and NJ Court Rule 4:64-1B)
• Reinstatement (“Restart”) of a Foreclosure Action (N.J.S.A. 2A:50-56.3 and NJ Court Rule 4:64-8)
• Creditor Contact Information (N.J.S.A. 46:10B-51)
• Vacant and Abandoned Residential Property (N.J.S.A. 2A:50-73)
• Mortgage Servicers Licensing Act (N.J.S.A. 17:16F-27 and N.J.S.A. 17:1C-34)
• Licensing Requirements for Residential Mortgage Lending (N.J.S.A. 2A:50-56 and N.J.S.A. 17:11C-1)​

The “citations” (letters and numbers next to each section title) are codes used to find laws online or in a law library. ​​

This information last reviewed: Dec 10, 2019