There will soon be state mortgage assistance for New Jersey's unemployed and underemployed.
New Jersey will be receiving $112 million in federal funding for anti-foreclosure assistance to help struggling homeowners. The allocation will be distributed to the New Jersey Housing and Mortgage Finance Agency (HMFA) through the Hardest-Hit Fund, a federal foreclosure-prevention initiative.
The New Jersey Home Keeper (NJHK) program, will be launched in January, 2011. It will be administered through the HMFA and is designed to assist unemployed and underemployed homeowners in New Jersey make their monthly mortgage payments for up to 24 months.
Since 2006, foreclosures have skyrocketed nearly 200 percent in the Garden State.
The New Jersey Home Keeper program will provide a zero percent interest rate, deferred payment mortgage loans to unemployed and underemployed homeowners, who through no fault of their own, are financially unable to make their mortgage payments and are in danger of losing their homes to foreclosure.
The program allows time for the homeowner to seek re-employment or complete job training programs. The assistance will also help with mortgage arrears that may have accrued due to lost employment income. The HMFA has said these loans will also be available to New Jersey homeowners who are participating in a permanent loan modification program.
Loans will be capped at $48,000 per household and will not exceed 24 months. The average assistance loan is expected to be $38,000.
The New Jersey Housing and Mortgage Finance Agency is drafting the rules and regulations for the NJ Home Keeper program, and hopes to roll it out in January, 2011.
For information on HMFA foreclosure programs as well as all other HMFA programs, log on to www.nj-hmfa.com.