The New Jersey Foreclosure Prevention Act, signed by Gov. Murphy, authorizes programs to address mortgage distress in New Jersey amid a rising number of foreclosures that was seen as far back as 2018 and expected to increase.
The act creates the New Jersey Residential Foreclosure Prevention Program, which will be led by the New Jersey Housing and Mortgage Finance Agency. This program empowers NJHMFA to establish public-private partnerships with nonprofits, and thus to be able to undertake supportive interventions, including bulk purchases of non-performing loans from institutional lenders.
“New Jersey has made great strides in addressing the previous foreclosure crisis, and we do not want to see history repeat itself when the foreclosure moratorium is eventually lifted,” said state Sen. Troy Singleton (D-7th), a Senate co-sponsor of the bill signed into law. “With the pandemic decimating the economy, countless people around the state are on the brink of losing their homes. Now law, the New Jersey Foreclosure Prevention Act will help to stave off a wave of foreclosures and, more importantly, keep families in their homes.”