A new effort to prevent foreclosures will help New Jersey homeowners who are having trouble paying their mortgage because of financial hardship.
About $17 million in federal funds is going to the HomeSaver program to provide no-interest loans up to $50,000 to about 350 homeowners in the Garden State, according to Anthony Marchetta, executive director of the New Jersey Housing and Mortgage Finance Agency.
“They probably have missed several payments, but they haven’t been formally foreclosed upon,” he said. “The goal is to work with them and their servicer in coming up with a mortgage modification that would allow them to stay in their home.”
Mortgage servicers who participate in the program might be able to help homeowners reduce their monthly mortgage outlay to less than 38 percent of their household income, Marchetta said.
Staci Berger, the president and CEO of the Housing and Community Development Network of New Jersey, is pleased the state is giving homeowners an opportunity to get help before they get into a foreclosure situation.
“There are a lot of people who have been struggling to keep their home current and not making perhaps repairs that need to be made or not making other investments in their housing choices,” she said. “So this is a chance for them to get ahead and not fall behind. We think it’s a great first step.”