Bill > S1443

This bill establishes mortgage payment relief and foreclosure protection for certain homeowners in New Jersey who were impacted by the remnants of Hurricane Ida, a major storm that caused significant flooding and damage in September 2021. Specifically, it defines "storm-impacted homeowner" as someone whose primary residence was damaged by the storm and who received federal disaster assistance, and "mortgage forbearance" as a temporary suspension of mortgage principal and interest payments. The bill mandates that mortgage servicers, which are companies that handle mortgage payments, must grant a one-year mortgage forbearance to eligible homeowners who request it and meet certain financial criteria, such as having a household income not exceeding 150% of the area median income and limited cash reserves. During this forbearance period, mortgage servicers are prohibited from reporting negative payment information to credit agencies and from initiating foreclosure proceedings, with any existing foreclosure deadlines being paused. The bill also allows for a stay, or pause, in foreclosure proceedings for eligible homeowners. Importantly, the repayment period for the mortgage will be extended by the duration of the forbearance, and no additional fees or penalties will be assessed. The provisions of this bill are retroactive to September 1, 2021, and apply to most residential mortgage loans, with some exceptions for loans made or serviced by certain federal agencies.

Budget and Finance, Housing and Urban Affairs

https://www.njleg.state.nj.us/bill-search/2024/S1443