Rice- Redd Measure To Create Housing Rescue Plan Becomes Law

Senators Ronald L. Rice (D-Essex) and Dana Redd  (D-Camden and Gloucester)

TRENTON –Legislation sponsored by Senators Ronald L. Rice and Dana L. Redd to create the New Jersey Homeownership Preservation Act which will help provide needed assistance to those facing foreclosure became law today/

“There are an increasing number of households that are becoming victims of foreclosures,” said Senator Rice, D-Essex. “These foreclosures have created an economic downturn in New Jersey. When a home is foreclosed upon, it isn’t just families who are affected. We have seen, first hand, that the negative impact creates a domino effect that leads to an increase in crime and a decrease in area property values.”

The enacted bill, S-1599, establishes a Mortgage Stabilization Program Fund in the New Jersey Housing and Mortgage Finance Agency (NJHMFA). The program provides assistance to homeowners and lenders willing to refinance covered mortgages in order to ensure that homeowners have access to affordable mortgages.

Senator Redd, D-Camden and Gloucester, stated that the Mortgage Stabilization Program provides a financial incentives for lenders willing to renegotiate loan terms.

“This legislation will keep families in their homes, and help maintain some stability for the residents of New Jersey,” said Senator Redd. “The New Jersey Housing Assistance and Recovery Program will provide funding to support a third party sponsor who enters into a lease-purchase agreement with a homeowner at risk of losing their house to foreclosure. Times are tough for everyone, and by signing this new law, we are going to be able to ease the burden on many citizens.”

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