New Jersey Introduces Mortgage Payment Grace Period

Date: March 29, 2020

By Bob Towey

New Jersey homeowners under financial duress from the coronavirus outbreak will now receive mortgage relief from a new deal between the state and major investment banks.

In a press conference Saturday, New Jersey Gov. Phil Murphy explained that over 40 lending institutions agreed to provide a 90-day grace period for all home mortgage payments. The arrangement prohibits banks from lowering residents’ credit ratings or assessing late fees for missing payments.

“Together, a 90-day grace period…means many New Jersey families can breathe easier, keep their heads above water, and have a place they can continue to call home,” Murphy said.

Eligible borrowers will have the payments they miss over the next three months added onto the end of the mortgage. Homeowners can delay or reduce their monthly payments over the 90 days according to a statement from the governor’s office detailing the plan.

The group of lenders—which includes Citi, Wells Fargo, and Bank of America—will halt foreclosures and eviction proceedings for the next two months, Murphy, a former Goldman Sachs executive, said. Homeowners must contact their banks to determine whether they qualify for the plan.

The governor called on banks to further assist residents by lowering credit card interest rates and asked landlords to offer more leniency on rent payments during the outbreak. Evictions were banned for two months under an executive order from Murphy on March 23.

The announcement is the latest in a series of state and federal plans aimed at alleviating COVID-19’s economic pressure. New Jersey Republicans legislators are also requesting that Murphy give a three-month extension for submitting state taxes.

The Trump administration moved the federal tax filing deadline to July 15.

Johns Hopkins University reports that New Jersey’s more than 11,100 coronavirus patients are the second-most of any state. The United States overtook Italy and China for the most confirmed cases earlier this week, with over 122,000 as of Saturday.

 

 

 

 

Posted in: WSOU, WSOU Exclusive