New Jersey Homeowners’ Options in a Foreclosure During COVID-19
The COVID-19 pandemic has brought about a lot of changes in the way foreclosures and evictions are handled. If you have been affected by COVID-19 and are struggling to pay your mortgage, you’re not alone. With COVID-19 provisions available in NJ, you may be able to delay or avoid the foreclosure process until a time when you are able to make your payment. There are federal and state options depending on how your mortgage is serviced.
Federal Housing Administration (FHA) COVID-19 Forbearance Deadline
UPDATE 4/1/22: If you were approved for an FHA forbearance last June of 2021, you have somewhere between three and nine months. It is important that you check to see your terms between yourself and your lender.
If you are currently seeking mortgage relief due to Covid-19, but you have missed the June 30th, 2021 deadline to apply for the Covid-19 Forebearance program, the United States has issued a newer COVID Forebearance or HECM Extension period whereupon borrowers who are presently struggling to pay their mortgage due to new difficulties with the pandemic, may request a forebearance from their lender until the end of the COVID-19 National Emergency. To find out if you are eligible, you must contact your service provider.
For more information, visit: https://www.hud.gov/press/press_releases_media_advisories/HUD_No_21_160
Other Federal Options
Fannie Mae & Freddie Mac Mortgages
UPDATE 4/1/22: If you hold a Fannie Mae or Freddie Mac single-family mortgage, you may be eligible for forbearance through your lender. It is very important that you contact your service provider.
If you are an eligible Fannie Mae or Freddie Mac multifamily property owner, you can still enter into a forbearance plan through your service provider. You must be able to provide proof of financial hardships due to COVID-19. In addition, property owners must inform tenants about the forbearance and ensure that there will be no evicting during this time period. Other tenant protections include “Giving tenants at least a 30-day notice to vacate, not charging tenants late fees or penalties for nonpayment of rent; and, allowing tenant flexibility in the repayment of back-rent over time, and not necessarily in a lump sum” (https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Extends-Availability-of-COVID-19-Multifamily-Forbearance.aspx).
National Moratorium on Evictions
UPDATE 4/1/22: The National Moratorium on evictions expired on September 30th, 2021.
New Jersey State Options
New Jersey homeowners have some other options that were recently announced by Governor Murphy. If you contact your mortgage servicer, you may be eligible for:
- A 90-day grace period for mortgage payments
- Assurance that the servicer will not report late or missed payments during this period to credit agencies
- A 60-day moratorium on servicers’ initiation of foreclosure sales or evictions
- Relief from certain fees and charges for at least 90 days
These are just a few of the options available to avoid foreclosure due to COVID-19. New Jersey homeowners whose mortgages are current and in good standing who are facing foreclosure due to COVID-19 legislation can apply for a one-time stay through the Relief from Disabilities Program. The Relief from Disabilities Program provides one stay of sale on the COVID-19 property, only when the mortgage loan is securitized or sold by a private entity into a publically traded or government-sponsored entity. A New Jersey homeowner can also arrange for a paid “We Buy Homes” program through which the homeowner pays the lender a fee to temporarily stay in their home.
COVID-19 Foreclosure FAQs
Yes, the moratorium protections expired on November 15th, 2021 as did the national moratorium on September 30th, 2021, so if your home is in the process of foreclosure or has been sold, you should begin seeking assistance immediately.
As of right now, the COVID-19 eviction moratorium is set to end on January 1, 2022. However, on July 24, 2021, the New Jersey State Legislature passed a bill that would end the COVID-19 eviction moratorium for homeowners on November 15, 2021, and the bill is expected to be signed into law any day now. The sooner you reach out to avoid foreclosure and eviction, the safer your investment in your home will be.
What can NJ Foreclosure Rescue do to help save my home?
NJ Foreclosure Rescue exists to save New Jersey homeowners from foreclosure, whether that means walking you through your pre-foreclosure options, helping you deal with mortgage lenders, helping you find alternatives to foreclosure, and more. We live by the belief that your investment in your home is worth protecting, no matter what. Dealing with a lender’s foreclosure process or lender issues can be nerve-wracking. We represent New Jersey homeowners who are fighting to stay in their homes and are standing up against the bank or mortgage company that holds your precious investment in their hands.
We stand beside you through the entire foreclosure rescue process, from start to finish. There’s no need for you to go it alone; we’re here to help you every step of the way. Our friendly representatives will hear out your side of the story and connect you with foreclosure specialists who can help, whether it’s exploring new loan options or finding a buyer for your home. While our goal is to help you stop foreclosure before it starts, we work with homeowners at every phase of foreclosure, even if your home has already sold.

FAQs Regarding Foreclosure in New Jersey
Have questions about pre-foreclosure in New Jersey, avoiding or preventing foreclosure, or your legal rights in a foreclosure? Find the answers in our FAQ section.

Take Steps to Avoid Foreclosure in the Pre-Foreclosure Stage
Taking action in the pre-foreclosure stage is the key to preventing foreclosure from proceeding in New Jersey. The longer you wait, the harder it will be to stop the foreclosure process. Learn more about pre-foreclosure in NJ and what steps you can take during a 15-day grace period, default, or even a 30-day notice to stop foreclosure proceedings and save your home.

Loan Options and Other Ways of Avoiding Foreclosure in New Jersey
When facing foreclosure in New Jersey, there are many different avenues that can help you rescue your home. Learn more about short sales, renovation loans, mortgage forgiveness, home equity lines, and other loan options you may have to stop foreclosure.
Need Help Accessing COVID-19 Foreclosure Relief?
Contact us today for assistance avoiding foreclosure, selecting foreclosure options, contacting lenders, and more.