N.J. Governor Signs Foreclosure Prevention Bill

Posted by Orb Staff on December 02, 2008 No Comments
Categories : Mortgage Servicing

Gov. Jon S. Corzine, D-N.J., has signed A3459/S8, allocating $12.5 million in state funds and $51.4 million in federal funds for foreclosure prevention assistance in the state.

In his Economic Assistance and Recovery Plan, Corzine proposed several measures to promote foreclosure prevention, including strengthening counseling opportunities available to homeowners in distress. The Department of Community Affairs (DCA) will receive $12 million in grant-in-aid funds to provide these additional mediation and counseling opportunities through the New Jersey Housing and Mortgage Finance Agency.

In addition, the Administrative Office of the Courts will receive $500,000 to provide mediation services to homeowners prior to foreclosure proceedings. Mediation will be imposed in the state's seven hardest-hit counties with the goal of helping homeowners stay in their homes. Counselors certified by the U.S. Department of Housing & Urban Development (HUD) will be part of the mediation process.

The bill also appropriates approximately $51.4 million in federal funds to DCA for the Neighborhood Stabilization Program. A component of the Housing and Economic Recovery Act of 2008, the program works to stabilize foreclosure-riddled neighborhoods by funding property acquisition, demolition, rehabilitation, and the creation and operation of land banks, in any combination, to spur neighborhood recovery. DCA will receive the $51.4 million after HUD approval of its proposed Action Plan.

‘During these unsettling economic times, we must remain committed to meeting the basic needs of New Jersey residents – shelter being chief among them,’ Corzine says. ‘By addressing the foreclosure issue head-on, we will keep families safe, keep communities strong and preserve local economies throughout the Garden State.’

SOURCE: The Office of Gov. Jon Corzine

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