As of August 1, 2021, the eviction moratorium in New Jersey has been extended, but for how long? What are your current options, and how quickly should you act to save your home or find alternative living or housing options? Read on for more information on the NJ eviction moratorium extension and the current state of affairs for foreclosure and landlords in New Jersey.
New Jersey Foreclosure Rates in August 2021
Foreclosure rates skyrocketed in the US during the COVID-19 pandemic, and New Jersey is in sixth place behind Nevada and South Carolina, with 0.07% of homes with foreclosure filings. On 19 March 2020, New Jersey Governor Philip Murphy issued Executive Order 106 to suspend all evictions and removals in the state. While the order calls for a moratorium on evictions, it means that in rare cases, a homeowner can be evicted from their home at any time due to foreclosure proceedings, however there are protections in place for homeowners within a certain income level. [Sources: 1, 2]
What does the new nationwide eviction moratorium include?
The Centers for Disease Control and Prevention (CDC) published a new nationwide eviction moratorium on Tuesday that halts evictions until October 3, 2021 if the family has signed a certificate confirming that they live in a county with significant or high eviction rates, in cases of non-payment of rent for people up to $99,000 and couples earning at least $198,000 as well as for those who sign certifications that they live in districts with significant or high transmission of the coronavirus. The foreclosure moratorium applies to business-based single-family mortgages. The REO eviction moratorium applies to properties purchased by companies through a foreclosure deed or in lieu of a foreclosure transaction.
What is the current status of the eviction moratorium & eviction law in NJ?
New Jersey was one of the few states to extend eviction protection on August 1, 2021, when the previous CDC moratorium expired. State and federal protections will end evictions if there are reasons other than non-payment of rent.
NJ Governor Murphy signed into law a new foreclosure moratoria law that will take effect on August 1, 2021. The purpose of this bankruptcy law is to give those who are currently struggling with mortgage payments time to adjust their finances. Governor Murphy stated that his goal was “to guarantee we have an orderly, responsible transition away from reliance on an overpriced and unaffordable housing market”.
New Jersey’s foreclosure moratorium on homeowners is set to expire on November 15. For tenants who under threat of perjury certify that they could not pay rent or meet other criteria due to the pandemic are eviction lawsuits for non-payment of rent or non-payment of rent increases from March 2020 to August 31, 2021 dismissed by courts. The rental during this period becomes a civil debt that can’t be reported to creditors and can be used to deny future housing. [Sources: 3]
Landlords can evict you if you have missed payments during the pandemic between 1 March 2020 and 31 August 2021, unless you earn at least 120% of NJ median income. The federal government has also extended the Mortgage Forgiveness Debt Relief Act, which provides refundable tax credits to those who are facing housing challenges.
Contact NJ Foreclosure Rescue today to find out if your combined household income qualifies you to benefit from the NJ eviction moratorium.
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