Moratorium halts evictions and foreclosures in NJ

As part of the continued effort to help contain the impact of the COVID-19 pandemic, state legislators outlined a series of steps underway to help aid those in immediate financial need and keep people in their homes during the crisis, including actions to protect residents from eviction or foreclosure that are as expansive as any in the nation.

Gov. Phil Murphy recently signed a bill into law, which explicitly provides authority to the Governor to issue an executive order declaring a moratorium on removing individuals from their homes pursuant to an eviction or foreclosure proceeding. 

This move will ensure that no renter or homeowner is removed from their residence while this Order is in effect.  These actions come a day after the U.S. Department of Housing and Urban Development, Fannie Mae, and Freddie Mac would be suspending all foreclosures and evictions for at least 60 days.

The bill was sponsored by Assemblymembers Angela McKnight, Holly Schepisi, and Benjie Wimberly, and Senators Joseph Cryan and Nellie Pou.  The Administrative Office of the Courts also provided helpful guidance on the legislation.

“It is unsettling to think a family could be evicted or asked to leave their home due to foreclosure proceedings at this time,” said Assembly Sponsors McKnight and Wimberly.  “We must do everything we can to keep families safe and in a home until we get to the other side of this public health crisis. We will get through this New Jersey.”

Financial institution holding residential or commercial mortgages, equity loans, lines of credit or business loans are being asked to implement a process to work with the mortgagors or loan holders to avoid foreclosure or default arising out financial hardship caused by the COVID-19 pandemic, or by any local, state, or federal government response to COVID-19.