NJ A-955 Would Help Homeowners Facing Foreclosure
On February 22, NJ.com published an article titled Measure Would Help NJ Homeowners Facing Foreclosure.
Link to introduced bill. Following is the aforementioned article.
Measure would help NJ homeowners facing foreclosure
A bill that would help homeowners struggling to avoid foreclosure was released by an Assembly committee Friday.
The bill (A-955) would create a pilot program that would allow homeowners who have fallen behind on their mortgage payments to reduce the principal on the loan. In exchange, the homeowner would give New Jersey Housing and Mortgage Finance Agency shares of equity in the property that would be paid when the home is sold or over a 10-year period after the mortgage is paid off.
“The goal of this pilot program is to help homeowners afford to stay in their homes while discouraging distressed homeowners, who are still current on their mortgages, from defaulting,” Assemblyman Wayne DeAngelo (D-Mercer) said in a statement. “If we can reduce foreclosures and short sales, we can help eliminate the factors that are stifling the recovery of our housing sector.”
According to its sponsors, the bill would help ease the state’s housing crisis by allowing distressed homeowners to have their principal lowered by as much as 30 percent while also lowering interest rates.
New Jersey has the second-highest foreclosure rate in the country behind Florida.
“We cannot remain stuck while other states continue to rebound from the housing crisis that crippled our economy,” Assemblyman Jerry Green (D-Middlesex) said in astatement. “This program can help stem the tide of foreclosures and jumpstart our economy.”
Please click here to view the online article.
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