NJ governor signs bill into law that protects home equity in foreclosure sales

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New Jersey Gov. Phil Murphy has signed into a law a bill that protects home equity in foreclosure sales. Under the bill, homeowners would receive the equity remaining after the loan balance and accrued interest is paid.

The legislation was a needed update after a recent Supreme Court ruling found property owners, or their heirs, have the right to a foreclosure sale and can keep the equity after debts are paid. This does not apply to abandoned properties.