New Jersey’s governor issued an executive order on March 19, 2020, imposing a statewide moratorium on evicting owners of homes that are amid foreclosure proceedings. The foreclosure eviction moratorium, which is slated to expire on November 15, provides broad, robust protection. Financial institutions cannot force individuals from their homes even if a final judgment of foreclosure has been entered and a sheriff’s sale of the property has taken place.

While New Jersey’s eviction moratorium prohibits the forcible removal of individuals from their homes, it does not reverse the foreclosure process. Homeowners can still face foreclosure after November 15 if they fall behind on their mortgage payments or if a foreclosure sale occurred before the start date of the foreclosure moratorium. However, the moratorium can provide much-needed breathing room, giving troubled mortgage holders a chance to get back on their feet financially.

If you are facing foreclosure eviction and aren’t getting cooperation from your mortgage lender, you should seek the assistance of a knowledgeable foreclosure protection attorney. Obtaining legal counsel can help you see your available options, which may include a Chapter 13 bankruptcy. That option gives you the opportunity to create a repayment plan for paying off most unsecured debts (including mortgage arrears) in five years or less. During this period, creditors are forbidden by law from starting or continuing collection efforts, and you may be able to renegotiate your mortgage on more favorable terms.

Many financial institutions are offering mortgage payment relief to New Jersey residents struggling to make their monthly payments. Additionally, individuals with federally backed mortgages may qualify for payment forbearance under the CARES Act, a remedy designed for people facing financial hardship due to the coronavirus epidemic. Forbearance means your mortgage provider grants you a suspension on your mortgage payments for a limited time, typically three to six months. If you believe you qualify for forbearance under the CARES Act, you must request it by September 30, 2021.

For more than 25 years, the Law Offices of James C. Zimmermann has represented New Jersey clients in bankruptcy and foreclosure matters. Call us at 973-764-1633 or contact us online for a free initial consultation. We have offices conveniently located in Vernon, Wayne, Pompton Lakes, Hackensack, and Nutley, New Jersey. We have evening and telephone appointments to accommodate your schedule.