Foreclosure in New Jersey>Question Details

Jeff K, Home Buyer in Bristol, PA

NJ Experts only - Foreclosure and COAH. I have the opportunity to buy a property at auction (Sheriff's sale)

Asked by Jeff K, Bristol, PA Sun Jan 11, 2009

here in NJ. BUT - the property is currently a Moderate Income unit with deed restrictions - perhaps COAH - but built quite some time ago.

I could not normally buy this property as a typical resale (I earn more than the limit). BUT, the property is going to auction. It's my understanding that Foreclosure changes the normal rules. From what I can tell - if it goes to auction and then back to the bank that the deed restrictions that are normally be in place for a standard resale no longer apply. And that the bank would be able to sell the property for full market value. There seem to be several cases of this in Clinton NJ area. Clearly, it must have also happened in other NJ towns and counties also.

So, if deed restrictions are indeed lost in the course of a foreclosure for the bank, shouldn't the same hold true for any individual that buys a foreclosure at auction? Need serious NJ Expert assistance. Here's my contact info: jkling "at" nac.net. 908 *** 963 **** 5180.

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Answers

5
My understanding is that deed restriction for COAH run with the property. I am not familiar with the cases you refer to in Clinton. I must state that I am not an attorney, nor is this legal advice.

As a Realtor, I suggest that prior to bidding on the property, make sure what deed restrictions apply. If the restrictions are from the Council on Affordable Housing, there are different rules for municipal and not for profit sponsored units, and for owner occupied and rental. If it was built quite some time ago, do the restrictions still apply?

The rules and restrictions can be found in this link...
http://www.state.nj.us/dca/affiliates/coah/regulations/fha.pdf

My understanding is that with each affordable housing unit sale, along with the deed a 'Declaration Of Covenants, Conditions And Restrictions Implementing Affordable Housing Controls On State Regulated Property' is filed as an attachment. You should check that.

There are many attorneys that work in the field of affordable housing, they would be your best bet for a difinitive answer to this question. You could also contact Melissa Orsen at 609-292-0921. She's Deputy Director and Counsel to the Affordable Housing Council.

Good luck!

Laura Giannotta
Keller Williams Atlantic Shore
2 votes Thank Flag Link Sun Jan 11, 2009
Emailed ....your mac address
0 votes Thank Flag Link Mon Mar 30, 2009
Jefferson,

E-mail me then.
0 votes Thank Flag Link Mon Mar 30, 2009
Hi Renee,

Oh! Had you emailed me? I hadn't realized. I don't see one in there, but it's perhaps possible that it ended up in my spam folder and deleted. This happens from time to time - my spam software has a mind of its own. Please email or call me and I'll catch you up. The story is pretty interesting.

Jeff
0 votes Thank Flag Link Mon Mar 30, 2009
Jefferson,

You never emailed me.
0 votes Thank Flag Link Mon Mar 30, 2009
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