ASSEMBLY HOUSING COMMITTEE

STATEMENT TO

ASSEMBLY, No. 2777

STATE OF NEW JERSEY

DATED:  MARCH 9, 2026

      The Assembly Housing Committee reports favorably Assembly Bill No. 2777.

      As reported, this bill, known as the "New Jersey Online Foreclosure Sale Act," authorizes a county to require the sale of foreclosed-upon property in an electronic, online forum that is open to the public by any sheriff or other authorized officer or person authorized or required by statue, court directive, or other law to conduct the sale. 

The bill authorizes a county to contract with a vendor for online foreclosure sale services on behalf of a sheriff, or other officer or person authorized or required to sell real estate, to conduct an online foreclosure sale of real estate.  This bill provides authority to contract for the services and requirements suited to a particular county, which may include, but are not limited to: types of services; fee amounts; method of charging a fee in the auction; recovery maximization; record-keeping requirements; and security requirements.  Further, the bill enables a county or municipality to procure electronic, online real property foreclosure services through competitive contracting.  The bill requires the track record of vendors in creating competitive auctions for the benefit of debtors and lenders be considered in the evaluation and ranking of submitted proposals of service providers. 

      The bill requires that the total of all fees charged by a vendor to a bidder, sheriff, or other officer or person authorized or required to sell real estate are not to exceed $1,000 per auction.  The bill also requires that any fees charged by a vendor are to be taken directly from the purchaser’s deposit with the vendor or the plaintiff’s deposit with the sheriff, and are not to reduce or impact the collection of sheriff’s fees.

      The bill requires the sheriff or other officer or person conducting the electronic, online foreclosure sale, and the contracted vendor, to:

      (1)  require each prospective bidder to verify their identity through an identification verification process prior to placing a bid;

      (2)  require a person seeking to bid online to complete a registration process, which is to include the provision of information necessary to properly identify the bidder, contact the bidder, and complete the sale of the property; and

      (3)  obtain from the successful bidder certain contact information, identification, business registration information, and information necessary to be checked against the federal Office of Foreign Assets Control Sanctions List prior to finalizing the purchase of the property.

      The bill allows payment of the 20 percent deposit by the successful bidder to occur either immediately upon the conclusion of the foreclosure sale, or within a timeframe established by the sheriff regarding online sales.  For both payment of the 20 percent deposit and payment of the balance of monies due when the sheriff’s office delivers the fully executed deed to the bidder, the bill removes the requirement that payment be made in either cash or certified check.  The bill also allows the sale to resume without the reposting of the online sales notice if the successful bidder is in default or fails to provide the funds as required. 

      Finally, the bill provides that if an online foreclosure auction format is used, a vendor is required to provide a non-electronic option for bidders, which may include a paper bid packet.

This bill is to take effect on the first day of the second month following enactment.

      This bill was prefiled for introduction in the 2026-2027 session pending technical review.  As reported, the bill includes the changes required by technical review, which has been performed.