Trenton – Legislation sponsored by Senator Joe Cryan and Senator Troy Singleton promoting the use of a mediation program to prevent foreclosures was enacted into law today by Governor Phil Murphy.
The law, S-2961/A-1063, will enhance the notification requirements for the Foreclosure Mediation Program, informing homeowners of the free assistance available to them when facing foreclosure or loan default actions.
“Our residents are experiencing terrible hardships from the coronavirus crisis, including the threat of foreclosure of their homes,” said Senator Cryan (D-Union). “The mediation process can help protect them by making use of help from attorneys, housing counselors, and a neutral mediator. This will help provide them with the information they need to resolve a loan delinquency so every participant can reach an agreed-upon agreement that satisfies the obligations and commitments of everyone involved.”
“For more than a year, New Jersey has been in the midst of both a public health crisis and an economic crisis,” said Senator Singleton (D-Burlington). “During this time, many were struggling with unemployment and could not pay their mortgage. We must give homeowners every tool possible to stay in their homes. By making sure homeowners are aware of free mediation services, we can help them avoid foreclosure. We have worked too hard to address the previous foreclosure crisis, and must do all we can to avoid it from happening again.”
The mediation program provides professional, highly trained lawyers, mortgage and housing counselors, and professional mediators to homeowners facing foreclosure.