New Jersey homeowners who were victims of Hurricane Sandy will no longer have to fear about facing foreclosure thanks to the latest bill that is waiting for approval from New Jersey Gov. Chris Christie on December 19.
The bill, named S2300, will help homeowners affected by Hurricane Sandy avoid foreclosure by allowing them to apply for a forbearance period on existing mortgages, and homeowners will be allowed to stop making mortgage payments but will be responsible for maintaining and insuring their properties as well as paying property taxes. Sponsored by Senators Jennifer Beck (R-Monmouth) and Brian Stack (D-Hudson), the bill was passed by the Assembly and the New Jersey State Senate before going to Gov. Christie.
Homeowners who have been approved for assistance through New Jersey’s Reconstruction, Rehabilitation, Evaluation, and Mitigation (RREM) program; the Low-to-Moderate Income (LMI) program; and the Tenant-Based Rental Assistance program will be offered temporary protection against mortgage forbearance through S2300. The bill will also assist those who have received rental assistance from the Federal Emergency Management Agency (FEMA) as a result of property damaged caused by the storm.
Senator Beck told Press of Atlantic City that the new bill will provide a safety net for families who are struggling to pay for their mortgage. “The process of securing state and federal recovery funds is long and complex,” she said. “It has been four years, and yet we still have 3,200 Sandy victims eager to complete elevation and construction projects, including some that have just begun.”
The forbearance period will be effective up until one year after the home is awarded a certificate of occupancy, or to July 1, 2019, depending on which comes first.