On September 23, 2010, Governor Chris Christie’s administration announced that New Jersey will receive $112 million of federal funds, from the Hardest Hit Fund, for the purpose of funding foreclosure prevention initiatives. In connection with this announcement, the administration unveiled the New Jersey Home Keeper program (NJHK). This program, which will launched in January 2011, will be administered through the HMFA and is designed to assist unemployed and underemployed homeowners make their monthly mortgage payments for up to 24 months.
NJHK will provide a zero percent interest rate, deferred payment mortgage loans to unemployed and underemployed homeowners, who through no fault of their own, are financially unable to make their mortgage payments and are in danger of losing their homes to foreclosure. Loans will be capped at $48,000 per household and will not exceed 24 months.
The following comprise the highlights of the program:
Provide 0% interest rate, deferred-payment mortgage loan to unemployed and substantially underemployed homeowners who, through no fault of their own, are financially unable to make their mortgage payments and are in danger of losing their homes.
While the homeowner seeks work or job training, NJHK loan proceeds may be used to cover an approved amount of the mortgage payment, property taxes, property insurance, mortgage insurance, and homeowner association dues.
As proposed in the award application made by the New Jersey Housing and Mortgage Finance Agency (“HMFA”) to the U. S. Treasury the maximum payment amount will be up to $48,000 and the maximum period of assistance will be 24 months. Assistance will be secured by a subordinate mortgage.
The NJHK program is anticipated to start in January, 2011.
The foreclosure defense team at Friscia & Associates LLC will continue to monitor this program in anticipation of its launch. If appropriate, we will work to enroll our NJ foreclosure clients in this program. Contact our NJ office at (973) 500-8024 or at [email protected] for further details.