What you need to know
- New Jersey Governor Phil Murphy announced Wednesday that the state will allocate $10 million in funds to prevent foreclosures.
- The Murphy Administration will use the funds to purchase bad debt from the FHA prior to foreclosure proceedings.
- If the homeowner lives on the property, efforts will be made to assist them. If the property is abandoned, the state takes steps to take ownership, complete any necessary restoration work, and return the property to the single-family home market.
New Jersey Governor Phil Murphy announced Wednesday that the state will allocate $10 million in funds to prevent foreclosures.
Funds from the 2021 American Relief Plans Act (ARPA) will be used to support the New Jersey Foreclosure Act program administered by the New Jersey Housing and Mortgage Finance Authority (NJHMFA).
The Murphy Administration will use the funds to purchase bad debt from the FHA prior to foreclosure proceedings. If the homeowner lives on the property, efforts will be made to assist them. If the property is abandoned, the state takes steps to take ownership, complete any necessary restoration work, and return the property to the single-family home market.
“The Anti-Foreclosure Act has been enacted for more than a decade. We are proud to have signed this landmark legislation that adds In a statement, Murphy added that he hopes the program will “continue to grow.”
After the 2008 financial crisis, New Jersey’s single-family home market was severely impacted, with many properties being purchased by investors and converted to rentals, reducing the inventory of affordable single-family homes. Nationwide, the economic impact on homeowners from the COVID-19 pandemic could lead to similar losses of single-family homes.
“Homeownership is the foundation for building wealth across generations and provides people with long-term financial, mental and physical security,” Lt. Gov. Sheila Oliver said in a statement.
Oliver, Commissioner of the Community Affairs Department and Chairman of the NJHMFA Board, said: My dream is to have my own house. ”