A new program that aims to help prevent foreclosures in New Jersey has recently been announced to become effective by January 2011. On September 23^rd, the program called the New Jersey Homekeeper Program was announced to receive $112 million from the federal government, according to an article by Bob Jordan . An additional funding of $188 million was approved on October 12, and the total $300 million is projected to help about 7,500 homeowners.

According to its official website , the program aims to:

1.   “provide 0% interest rate, deferred-payment mortgage loan to unemployed and substantially underemployed homeowners who, through no fault of their own, are financially unable to make their mortgage payments and are in danger of losing their homes.”

2.   possibly give loans that may also  “be used to cover an approved amount of the mortgage payment, property taxes, property insurance, mortgage insurance, and homeowner association dues” if the homeowner is seeking work or job training.”

The website additionally states that loans are to be capped at $48,000 per household while Bergen Record writes that “the maximum period of assistance will be 24 months.” Jordan reports that state officials believe the average assistance loan will be $38,000. The program is to be administered by the New Jersey Housing and Mortgage Finance Agency (HMFA), which aims to provide “a variety of programs and services to assist current homeowners,” according to its website .

Kristin Taveira reported yesterday that “one out of every 362 homes had a foreclosure filing in the New York metropolitan area,” which includes “New York, northern New Jersey, Long Island and part of Pennsylvania.”

Although Jordan reported that New Jersey was not the original ten (10) states to receive federal support, U.S. Senator Robert Menendez, D-NJ implied that the funding would help relieve such numbers by stating that the New Jersey Homekeeper Program will help serve as a “mortgage safety net…available to those who need it the most it these tough times: laid off workers on the brink of losing their homes.”

*Any information on all blog entries should not be construed as legal advice. If you have any legal issues, please consult an attorney.