NEW PROGRAM TO ASSIST FORECLOSURE DEFENDANTS;
PROPERTY SURPLUS HIGHLIGHTED
TOMS RIVER - Ocean County wants to give a helping hand to residents who face losing their home to foreclosure.
"These are steps the county is taking that can help some of these people in very unfortunate circumstances start their
lives over again," said Freeholder John P. Kelly, who serves as director of Law and Public Safety. "We believe this
program will help to inform and educate when it comes to the foreclosure process."
Kelly was joined by his colleague Freeholder Director Gerry P. Little, Ocean County Prosecutor Thomas F. Kelaher and
Undersheriff Wayne Rupert at a press conference today to unveil a notification system for foreclosure defendants.
"When a person loses their home to foreclosure many do not believe they are entitled to any money," said Little. "That is
not necessarily the case."
In order to inform people that a surplus may exist, notices are now being sent out by the Ocean County Sheriff's
Department, which conducts sheriff's sales or foreclosures, said Undersheriff Rupert.
"We have been sending out notifications since the middle of January," Rupert said. "We are pleased to have this program
under way with the hopes of helping someone who is faced with losing their home."
Defendants are now receiving a notification at the time the property is posted for sale in addition to a second one after
the sale, according to Investigator Steven Mecka of the Ocean County Prosecutor's Office.
The first notification indicates that there may be a surplus amount of money generated from the sale.
"In other words, the sales price for the property may be more than the amount owed," Mecka said.
The second notification states whether the amount the property is sold for is more than the amount owed indicating there
could be a surplus.
Rupert added that if there is a surplus the former owner is also notified by letter from the Sheriff's Department of the
amount.
"The defendant must make a motion in the Superior Court action to obtain the surplus," Kelaher said. "Through this
notification system, they at least know there is a surplus available to them and in some instances it can be a substantial
amount of money."
For instance, if a property sells at foreclosure for $100,000 and the money owed is $50,000 the surplus owed to the
defendant would be $50,000.
Surplus money that is not claimed is kept in a state fund for up to 10 years.
"Unless someone knows about this list and how to access it the money is not returned to its rightful owner and someone in
dire financial straits does not get the
assistance they so desperately need," said Freeholder Little. "We want to help change that and this program can do that."
Mecka noted that often people who are in the throes of foreclosure proceedings become prey to scam artists who make offers
that are often too good to be true.
"Some of this is just bad business when someone is forcing a person to make a quick decision based on dire circumstances,"
Mecka said. "People are usually apt to fall for these schemes and they are unaware of the potential surplus.
"Instead they will 'quick deed' their house to a third party during the 10-day right of redemption period when the pressure
is at its worst," Mecka said.
In some cases the scheme makes the loss even greater.
Mecka said that of the 99 sheriff's sales that occurred in 2005, 24 redemptions equated to $1.5 million of surplus, which
averages about $62,000 per sale.
Freeholder Little noted that state legislation should be proposed to correct the inequities of the foreclosure process.
"People who are receiving a surplus should not have to petition the state," he said. "The state should just return it."
However, Freeholder Kelly noted that in the absence of state legislation, Ocean County was happy to take the lead in
informing and educating residents through the use of this new notification system.
"This is a good and important program to put into place," he said. "Hopefully the rest of the state will follow suit."
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