As the current crisis continues, daily information is coming out regarding mortgage relief programs and foreclosure suspensions. The attorneys at Levitt & Slafkes continue to monitor these programs as they relate to New Jersey homeowners. The following is the latest update as of March 30, 2020.
New Jersey Specific Programs
- All foreclosure and lease evictions are suspended for a period of 60 days after the public health emergency is completed.
- The governor also announced that he has an agreement with more than 40 mortgage lenders to grant a 90-day grace period on mortgage payments. We suggest that you check with your specific lender/servicer to obtain the details of the grace period and repayment terms.
- No Sheriff sales are being conducted in the State.
- The New Jersey Office of Foreclosure which processes final foreclosure judgments will not review or recommend entry of foreclosure judgments from March 1, 2020 pending further Order of the Court.
Federal Relief Programs
Coronavirus Aid, Relief, and Economic Security Act
The CARES Act, signed into law on March 27, 2020 provides some relief for mortgage borrowers on federally backed loans including:
- Prohibits foreclosures on all federally-backed mortgage loans for a 60-day period beginning on March 18, 2020.
- Provides up to 180 days of forbearance for borrowers of a federally-backed mortgage loan who have experienced a financial hardship related to the COVID-19 emergency.
- For borrowers on multifamily homes it provides for up to 90 days of forbearance. Borrowers receiving forbearance may not evict or charge late fees to tenants for the duration of the forbearance period.
- Provides for a temporary moratorium on eviction filings for 120 days beginning on March 27, 2020. During this moratorium period, landlords are prohibited from bringing legal action to recover possession of a rental unit or to charge fees, penalties, or other charges to the tenant related to such nonpayment of rent if the landlord’s mortgage is federally backed.
Private Mortgage Relief Programs
Approximately one-half of all mortgage loans are backed by the federal government. The remainder of mortgages are non-government backed. Most of the private mortgage lenders/servicers are offering payment deferrals from 90 to 180-days.
Regardless of what type of mortgage you have, it is important that you contact your mortgage lender/servicer either by telephone or online to find out what programs are being offered and to apply.
Regardless as to whether the mortgage is government backed or non-government backed, you must contact your mortgage lender/servicer to apply for relief. Don’t just stop paying.
We Are Here to Help You:
Attorneys Bruce Levitt & Shelley Slafkes have helped individuals and small businesses for over 30 years with their mortgage and financial difficulties. If you have any questions or need additional information contact us by telephone at (973) 323-2953 or contact us online.