Home > Foreclosure alternatives > New Jersey Gets $112 Million To Help Unemployed Home Owners

New Jersey Gets $112 Million To Help Unemployed Home Owners

New Jersey will get over $112 million from the Hardest Hit fund.

 

If you’ve lost your job and you’re having trouble paying your mortgage, you may qualify to receive an interest-free loan of up to $50,000 to help you stay in your home.

And if you stay in your home for 5 years, you may not even have to pay it back.

The program is being administered by the US Department of Housing and Urban Development and is part of the “Hardest Hit Fund.”

“We remain committed to helping struggling homeowners, and this program will provide additional assistance to states hit hardest by unemployment,” said Assistant Secretary for Financial Stability Herb Allison. “This is part of the Administration’s comprehensive housing policy that has helped to stabilize a fragile housing market and allows responsible homeowners the chance to reduce their monthly mortgage payments to affordable levels.”

“HUD’s new Emergency Homeowner Loan Program will build on Treasury’s Hardest Hit initiative by targeting assistance to struggling unemployed homeowners in other hard hit areas to help them avoid preventable foreclosures,” said Bill Apgar, HUD Senior Advisor for Mortgage Finance. “Together, these initiatives represent a combined $3 billion investment that will ultimately impact a broad group of struggling borrowers across the country and in doing so further contribute to the Administration’s efforts to stabilize housing markets and communities across the country.”

This new program will complement Treasury’s Hardest Hit Fund by providing assistance to homeowners in hard hit local areas that may not be included in the hardest hit target states. Those areas are still being determined.

The program will work through a variety of state and non-profit entities and will offer a declining balance, deferred payment “bridge loan” (zero percent interest, non-recourse, subordinate loan) for up to $50,000 to assist eligible borrowers with payments on their mortgage principal, interest, mortgage insurance, taxes and hazard insurance for up to 24 months.

Under the program, eligible borrowers must:

  1. Be at least three months delinquent in their payments and have a reasonable likelihood of being able to resume repayment of their mortgage payments and related housing expenses within two years;
  2. Have a mortgage property that is the principal residence of the borrower, and eligible borrowers may not own a second home;
  3. Demonstrate a good payment record prior to the event that produced the reduction of income.

HUD will announce additional details, including the targeted communities and other program specifics when the program is officially launched in the coming weeks.

How exactly this will help home owners in Bergen County remains to be seen. The foreclosure and mortgage default rate in Bergen County is high, but it is certainly not the highest in the state. I will stay on top of this story, and as soon as details are announced, I’ll put out the information on this blog.

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