NEW JERSEY FORECLOSURE FORBEARANCE

We hope everyone is doing well and feeling healthy in these uncertain times!

In response to COVID‑19, legislation has been passed, courts have been closed, and executive orders have been signed. Recently though, a response to the Governor’s pandemic concerns came to New Jersey property owners in a different form: by agreement.

New Jersey Governor, Phil Murphy, announced a mortgage payment forbearance courtesy by more than fifty (50) banks that have signed onto the initiative. This initiative provides the following:

•       A ninety (90)-day grace period for mortgage payments.

•       Banks will provide borrowers with a process by which to request a forbearance for reasons related to COVID‑19, supported with documentation.

•       Banks will confirm approval of the forbearance program, as well as its terms.

•       Banks will provide borrowers with the opportunity to request additional relief upon showing continued hardship due to COVID‑19.

•       No negative credit impacts as a result of the relief.

•       Banks will not report late payments to credit reporting agencies for borrowers that take advantage of COVID‑19-related relief, subject to applicable guidelines.

•       A ninety (90)-day relief from fees and charges.

•       Banks will waive or refund mortgage-related late fees and certain other fees (subject to federal regulations) for those borrowers who have requested assistance.

•       A sixty (60)-day moratorium on foreclosure sales and evictions.

•       Banks will not start foreclosure sales or evictions for sixty (60) days, consistent with applicable guidelines.

This initiative has been endorsed by the New Jersey Bankers Association, CrossState Credit Union Association, and the Mortgage Bankers Association of New Jersey. Those individuals who are seeking to take advantage of this program can do so through the bank with which they have a mortgage.

As of writing this, the banks that are participating in this initiative are:

•       1st Bank of Sea Isle City

•       Freedom Bank

•       OceanFirst Bank

•       1st Colonial Community Bank

•       Freehold Savings Bank

•       Parke Bank

•       Amboy Bank

•       Fulton Bank

•       Peapack-Gladstone Bank

•       Bank of America

•       Gibraltar Bank, FSB

•       PHH Mortgage

•       BCB Community Bank

•       Haddon Savings Bank

•       PNC

•       Blue Foundry Bank

•       Haven Savings Bank

•       Provident Bank

•       Brunswick Bank & Trust Company

•       Investors Bank

•       Regal Bank

•       Bryn Mawr Trust

•       JPMorgan Chase

•       RSI Bank

•       Century Savings Bank

•       Kearny Bank

•       SB One Bank

•       Citigroup

•       Lakeland Bank

•       Somerset Savings Bank, SLA

•       Columbia Bank

•       Lusitania Savings Bank

•       Sturdy Savings Bank

•       ConnectOne Bank

•       Magyar Bank

•       Union County Savings Bank

•       Credit Union of New Jersey

•       Manasquan Bank

•       United Roosevelt Savings Bank

•       Crest Savings Bank

•       Mariner's Bank

•       Unity Bank

•       Crown Bank

•       Millington Bank

•       US Bank

•       First Bank

•       Monroe Savings Bank, SLA

•       Valley

•       First Commerce Bank

•       Newfield National Bank

and

•       First Hope Bank

•       Northfield Bank

•       Wells Fargo

These banks will determine which of their customers are entitled to relief on a case-by-case basis. Banks will certainly ask the borrowers who seek to take advantage of this initiative to sign a contract outlining the terms of the relief.

Governor Murphy’s Executive Order No. 106, which created a moratorium on removing individuals from their homes pursuant to eviction or foreclosure proceedings, is still in effect. This new initiative, though, should provide additional relief for those who wish to avoid negative credit side-effects of foreclosure, or who wish to avoid foreclosure once Executive Order No. 106 is no longer in effect.

If you or any of your residents would benefit from this order, and you do not know where to begin, Griffin Alexander, P.C. can help. If you have begun the process of seeking relief, and need assistance with the contract the bank has provided you, we can help review the contract.

Stay strong, safe, and healthy,

Griffin Alexander, P.C.

The information in this Client Alert is provided solely for information purposes. It should not be construed as legal advice on any specific matter and is not intended to create an attorney-client relationship. The information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based upon particular circumstances.  Each legal matter is unique, and prior results do not guarantee a similar outcome.

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For any questions about this blog, or to schedule a consultation with an attorney, contact Griffin Alexander, P.C. at 973-366-1188 or through our website here!