New Jersey Gov. Phillip Murphy announced on March 28 that homeowners whose finances have been affected by the coronavirus (“COVID-19”) would get a 90-day reprieve on their mortgage payments.
According to the announcement, lenders must waive late fees and other expenses that a borrower would incur due to the grace period. Lenders also are expected to provide homeowners with a streamlined process to apply for forbearance, including a chance to ask for more relief, if they continue to show hardship related to COVID-19. The announcement further prohibits financial institutions from credit reporting derogatory tradelines (e.g., late payments) to consumer reporting agencies, consistent with applicable guidelines for borrowers who seek COVID-19–related relief.
Last week, Gov. Murphy signed Executive Order No. 106, which imposed a moratorium on removing individuals from their homes under eviction or foreclosure proceedings while the Order is in effect until May 18, 2020. Gov. Murphy further stated that more than 40 lenders currently are working with New Jersey on mortgage relief with more announcements expected in the coming days and weeks.
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