The federal government has given New Jersey about $100 million to help homeowners save their home from foreclosure. If you are behind in your mortgage payments and you have a legitimate hardship that has occurred within the last 3 years, you could be an excellent candidate for this program.
The New Jersey HomeKeeper Program can pay up to $48,000 to catch up on mortgage arrears and can also pay future mortgage payments for you over the next 12 months.
The best way to illustrate this is by giving you a specific example.
Let's assume you are $30,000 behind on your mortgage payments and your mortgage payments are $1,000 per month. If you qualify for the HomeKeeper Program, here is what will happen:
- The State of New Jersey will pay $30,000 to your mortgage company.
- This means that you are no longer behind on your mortgage, so any foreclosure against you will automatically stop.
- If you can demonstrate that you cannot pay your mortgage for the next 12 months, New Jersey will pay $1,000 per month for the next 12 months.
- In this example, New Jersey has paid the mortgage company a total of $42,000.
- If your mortgage payments were $1,500 a month, the State of New Jersey would have paid a total of $18,000 for your mortgage payment over those 12 months, and they would have paid a total of $48,000 to the mortgage company.
- If your mortgage payment was $2,000 a month, the State of New Jersey would only pay your mortgage payment for 9 months, totaling $18,000. The reason they would stop at 9 months is because they cannot pay more than a total of $48,000, and since they have already paid $30,000 towards your arrears, there is only $18,000 left that they can use to pay towards your future mortgage payments.
The next big question is whether you have to pay any of this money back to the State of New Jersey. The best answer is “maybe, but hopefully not”. It is a little bit complicated, but the bottom line is, if you handle it correctly you may not be required to pay anything at all back to the State of New Jersey. It's like getting free money.
So if you do it right, it is like getting free money from the State of New Jersey, plus you save your home from foreclosure. It usually does not get much better than that.
Another variation of the HomeKeeper Program was available about 2 to 3 years ago, but it quickly ran out of money. Don't let them run out of money this time, without you getting your fair share
THE TIME TO ACT, if you want to seize this opportunity, IS NOW. I have been an attorney since 1973, That's 44 years. I want you to know that you can apply for this program without an attorney, but keep in mind that the stakes are high. We are dealing with the possibility of getting $48,000 in benefits and saving your home versus being denied and possibly losing your home.
We also want you to know that there are a few things that would prevent you from getting into the program.
If you own another property, you are automatically excluded from the program.
If you are in an active bankruptcy, you are excluded from the program.
If, however, you had a previous bankruptcy and it is done, you can apply for the program.
If you are presently in an active chapter 7 or chapter 13, you should be able to apply for the program if your bankruptcy is dismissed or discharged.
If you have been accepted in the program, you are then allowed to file bankruptcy.
Examples of hardships would be financial losses due to layoffs, loss of job or under employment, illness, sickness, death in family, injuries from accidents, disability or medical problems of another family member, matrimonial problems, legal problems, unexpected and unanticipated expenses that cause you serious financial problems, and any other reasonable hardship.
Feel free to ask us any questions you may have.