Trenton – Legislation to allow the Governor to permit mortgage forbearances and reduced rents for those who have sustained a substantial loss of income during a state of emergency or public health emergency, cleared the Senate today. The bill is sponsored by Senator Troy Singleton, Senator Linda Greenstein and Senator Steve Oroho.
“As a result of losing their jobs, many New Jersey homeowners and renters are afraid of going into foreclosure or getting evicted due to their inability to make their monthly mortgage or rental payments, said Senator Singleton (D-Burlington). “With all of the other worries and uncertainties this public health emergency brings, whether or not you will have a roof over your head should not be one of them. By allowing for mortgage forbearance and reduced rents during times of crisis, we are giving homeowners and tenants the extra protection they will need to remain in their homes.”
“Even before the COVID-19 pandemic, there was a lot of economic uncertainty among New Jersey families. Now that hundreds of thousands of people are unemployed, our residents are afraid of being kicked out of their homes and becoming homeless,” said Senator Greenstein (D-Mercer/Middlesex). “It is important that we do not repeat the same mistakes that were made during and after he Recession. We must ensure New Jersey families that they will be protected from losing their homes and from being evicted from where they rent.”
“With hundreds of thousands suddenly out of work across New Jersey, many homeowners and renters have found themselves in desperate need of relief through no fault of their own,” said Senator Steve Oroho (R-Morris/Sussex/Warren). “Property owners, landlords, and tenants who are suffering from financial losses should be granted mortgage forbearance or rent reduction. As we encourage residents to stay at home, let’s make sure they have a place to stay.”
Under the bill, S-2340, whenever a Public Health Emergency or a State of Emergency is declared, the Governor would to issue an executive order to declare that homeowner could apply for a mortgage forbearance. The executive order would apply only to emergency-impacted homeowners and be required to indicate the length of time the forbearance period would remain in effect as well. This bill would effect both those who pay a mortgage and those who pay rent.