The program could help thousands of homeowners still trying to rebuild after Hurricane Sandy
TRENTON -- Victims of Hurricane Sandy who are still struggling to pay the mortgages on their damaged homes can now request delaying payments for slightly more than two years.
The state Department of Community Affairs is accepting applications for a mortgage forbearance program that would allow certain homeowners affected by Sandy to suspend mortgage payments and have them tacked onto the end of their loans.
The online application process, which begins today and runs through May 31, was created to help New Jersey residents still trying to rebuild after the 2012 storm avoid losing their homes.
New Jersey Organizing Project, a grass-roots group of Sandy victims, and other housing advocates had pushed for two years for help fending off foreclosures because of the storm.
Department officials said they have already mailed notifications to some residents who may be eligible for the program.
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Those residents who will be considered must meet the following criteria:
- They must have an outstanding mortgage on a Sandy-damaged home that is their primary residence
- They must have construction or elevation work related to damage from the storm that remains to be done on that primary home
They must have received financial aid related to the storm in the form of FEMA rental assistance, or were approved for aid through the Reconstruction, Rehabilitation, Elevation and Mitigation Program or the Low-to-Moderate Income Program
The Department of Community Affairs will review the application and any documentation the homeowner was required to submit to determine a whether the homeowner is eligible for mortgage forbearance certification, said Lisa Ryan, a spokeswoman for the department.
The homeowner would receive notification of eligibility from the department within 30 days of the submission of a completed application that includes all the documentation the homeowner has been asked to submit.
A homeowner deemed eligible would receive a mortgage forbearance certification that would allow payments to be delayed and then tacked onto the end of the loan.
The term of forbearance can last until July 1, 2019, or one year after the homeowner is issued a certificate of occupancy by the local construction official - which ever comes first.
Those who are issued the certification are responsible for contacting their mortgage provider implement forbearance.
If a mortgage servicer does not implement forbearance, a homeowner can make a complaint by contacting the NJ Department of Banking and Insurance at 609-292-7272 or 1-800-446-7467 or by visiting http://www.state.nj.us/dobi/consumer.htm.
Residents can find more information about the program at www.nj.gov/dca/divisions/sandyrecovery/forebearancecert.html.
The application and instructions for completing and submitting it can be found on the department's website at www.nj.gov/dca/. The application period begins at 9 a.m. March 31 and ends at 5 p.m. on May 31.
Property owners would still be responsible for maintaining their property as well as paying property taxes and insurance during the forbearance period.
Those with questions about the application process can also dial 211 to reach a call specialists will be available until June 7. NJ 211 is available all hours of the day and night. The calls are free, confidential and multilingual.
MaryAnn Spoto may be reached at mspoto@njadvancemedia.com. Follow her on Twitter @MaryAnnSpoto. Find NJ.com on Facebook.