New Jersey Homeowners’ Options in a Foreclosure During COVID-19

The COVID-19 pandemic 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 new 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

If you have a mortgage from the FHA for a single family residence, you have the right until June 30, 2021 to ask for forbearance, i.e. a temporary pause on payments to be resumed at a later date when hardships related to the pandemic have passed. For FHA loans, the initial forbearance period is up to 12 months, but you will also have the right to seek an additional six months of mortgage forbearance if you request forbearance on or before June 30th. This relief applies to all homeowners with an FHA-insured forward or Home Equity Conversion Mortgage (HECM) loan, and homeowners with a Section 184 or Section 184A mortgage loan.

Learn More

Other Federal Options

Fannie Mae & Freddie Mac Mortgages

If you hold a Fannie Mae or Freddie Mac single-family mortgage and entered into a forbearance plan by February 28, 2021, you may be eligible for a three-month extension of your mortgage forbearance. If you hold a multifamily mortgage, you may apply for forbearance through June 30, 2021. There are certain terms and protections you must agree to when you apply for forbearance, so keep that in mind.

National Moratorium on Evictions

You may have heard that due to COVID-19, there is a national moratorium on evictions. This is true for certain homeowners. If any of these conditions apply to you, you cannot be evicted through June 30, 2021:

  • You have a federally backed mortgage loan
    • FHA-insured
    • VA-guaranteed
    • USDA
  • You have a Home Equity Conversion Mortgage (HECM) loan
  • Fannie Mae or Freddie Mac have acquired your property through foreclosure

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:

  1. A 90-day grace period for mortgage payments
  2. Assurance that the servicer will not report late or missed payments during this period to credit agencies
  3. A 60-day moratorium on servicers’ initiation of foreclosure sales or evictions
  4. 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

According to an executive order by New Jersey Governor Philip Murphy, no one may be removed from their home for inability to pay rent during the COVID-19 emergency. This protection, called an “eviction moratorium,” was originally set to last until two months after Governor Murphy declared an end to the COVID-19 health crisis.
On June 4, 2021, Governor Murphy officially lifted the state of emergency declaration for New Jersey. This means that the eviction moratorium will be ending soon, 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.
The COVID-19 eviction moratorium protects homeowners from being evicted even if the foreclosure process has been carried out to completion. If someone is trying to evict you from your home illegally, call the police and/or seek legal help immediately.

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.

NJ Foreclosure Rescue | Foreclosure Options in New Jersey | Pre-Foreclosure in NJ | Avoiding Foreclosure in New Jersey | Best Way to Prevent Foreclosure in NJ | Ways to Stop Foreclosure Immediately in New Jersey | Loans to Stop Foreclosure in NJ | Preventing Foreclosure in New Jersey

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.

Learn More
NJ Foreclosure Rescue | Foreclosure Options in New Jersey | Pre-Foreclosure in NJ | Avoiding Foreclosure in New Jersey | Best Way to Prevent Foreclosure in NJ | Ways to Stop Foreclosure Immediately in New Jersey | Loans to Stop Foreclosure in NJ | Preventing Foreclosure in New Jersey

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.

Learn More
NJ Foreclosure Rescue | Foreclosure Options in New Jersey | Pre-Foreclosure in NJ | Avoiding Foreclosure in New Jersey | Best Way to Prevent Foreclosure in NJ | Ways to Stop Foreclosure Immediately in New Jersey | Loans to Stop Foreclosure in NJ | Preventing Foreclosure in New Jersey

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.

Learn More

Need Help Accessing COVID-19 Foreclosure Relief?

If you have been affected by COVID-19 and need immediate assistance to avoid foreclosure in NJ, take action right away!