June 25, 2021

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Residential Evictions: What Homeowners Need To Know – May 2021 | Lowenstein Sandler LLP

As of May 14, 2021


Can I be removed from my home due to foreclosure proceedings during the COVID-19 emergency?

No. On March 19, 2020, New Jersey Governor Philip Murphy issued Implementing Ordinance 106who have suspended evictions and removals across the state. This is known as the “eviction moratorium” and means that, except in rare cases, No homeowner is allowed to be removed from their home due to foreclosure proceedings at this point. They cannot be removed even if a final judgment on foreclosure was entered and a Sheriff’s sale Your property has taken place. The eviction moratorium does it Not Influence legal proceedings; Instead, relocations are prevented. Please see below for more information on legal proceedings.

How long is the eviction moratorium?

The eviction moratorium began on March 19, 2020 and will last until two months after Governor Murphy declares the end of the COVID-19 health crisis. The governor has extended the official public health emergency several times, most recently through Implementing Ordinance 240which expires on May 15, 2021. The governor did signals to allow the public health emergency to expire on that date if lawmakers act by then to end the emergency, while ensuring that the governor’s office has the tools to deal with the ongoing threat public health and recovery and vaccination efforts. If the governor does not extend the emergency again or end it prematurely, the eviction moratorium therefore applies at least until August 13, 2021.

Do I still have to pay my mortgage?

Yes. You have to make your mortgage payments sooner or later. However, if you need additional time, some help is available.

When you have a mortgage from that Federal Housing Administration For a single family home you have the right up June 30, 2021 asking for indulgence (a pause in payments) to alleviate the financial plight of the pandemic. The initial grace period is up to 12 months. However, you also have the right to apply for an additional six months of Mortgage Forbearance if you apply for Forbearance on or before June 30thth. This relief applies to any homeowner on an FHA-insured term loan or home equity conversion mortgage (HECM) loan, and to any homeowner on a Section 184 or Section 184A mortgage loan.

Homeowners Who Hold Up Single family mortgages of Fannie Mae or Freddie Mac who completed Forbearance Plans by February 28, 2021 may be eligible for one three month extension of their mortgage forbearance. Real estate owners who hold up Multi-family mortgages from Fannie Mae or Freddie Mac can apply Forbearance until June 30, 2021. Multi-family borrowers must agree to certain tenant protection measures in order to obtain mortgage forbearance. For more information on mortgage forbearance, see Consumer Finance Protection Bureau help page.

In addition, Governor Murphy has announced some important relief for homeowners with mortgages, including those that are not supported by the federal government. When you contact your mortgage service provider, you may be entitled to: (1) a 90 day grace period for mortgage payments; (2) Assurance that the servicer will not report any late or missed payments to credit agencies during this period; (3) a 60-day moratorium on initiating foreclosure sales or evictions by servicers; and (4) exemption from certain fees and charges for at least 90 days. For more information, see FAQs issued by the state. You can also check out their website New Jersey Housing and Mortgage Financing Agency For updates on the help available and to access a list of consultants by county.

If you need advice on financial assistance for homeowners, you can turn to Housing assistance NJ.

Is there a national eviction moratorium?

Yes, for some homeowners. On February 16, 2021, the Biden administration became announced that it has coordinated with three federal agencies – the Department of Housing and Urban Development (HUD), the Department of Veterans Affairs (VA), and the Department of Agriculture (USDA) – to extend their existing foreclosure moratoriums on government-secured mortgage loans, including FHA insured, VA-guaranteed, and USDA Loans, at least through June 30, 2021. The Federal Housing Administration extended the foreclosure and eviction moratorium for all homeowners with an FHA-insured term loan or an HECM (Home Equity Conversion Mortgage) loan, as well as for homeowners with a mortgage loan pursuant to Section 184 or Section 184A June 30, 2021.

On February 25, 2021 the Federal Office for Housing Financing at least extended Fannie Mae and Freddie Mac’s foreclosure and eviction moratoriums June 30, 2021. The foreclosure moratorium applies to single-family mortgages sponsored by Fannie Mae or Freddie Mac. The eviction moratorium applies to properties that these companies have acquired through foreclosure.

Court hearings

Can lenders still initiate foreclosure proceedings during this time?

Not if you have a single-family FHA mortgage. The foreclosure moratorium passed by the FHA prevents service providers from filing foreclosure proceedings against single-family mortgage holders June 30, 2021. This period can be extended further by additional measures or legal provisions of the agency.

Yes, if you don’t have a single family FHA mortgage. The State First order and relevant legislation Specifically state that lenders can bring foreclosure actions during the life of the order. The Supreme Court Foreclosure Office accepts new cases and electronic filings in existing cases.

Will the Foreclosure Office process cases during this period?

Yes. The foreclosure office manages portions of most foreclosure cases and handles most of the process when a foreclosure is “undisputed,” meaning the homeowner has not submitted a response to the complaint. Under a Order from June 25, 2020 The Office of Foreclosure, issued and repeatedly expanded by the New Jersey Supreme Court, is handling cases as usual. If you have any questions about a pending, undisputed foreclosure case, you can call 609-421-6100 or contact the Foreclosure Office [email protected].

Will the courts hear foreclosure cases during this time?

Yes. There is no order to suspend court hearings in controversial foreclosure cases (where the homeowner responded to the complaint). Please note, however, that under a Order February 23, 2021, “Legal proceedings. . . Proceed in a remote format as much as possible. “Until the Court overturns or changes the order, most hearings, conferences and arguments will be held by video or telephone. Please contact the court with which the case is pending if you have any questions. Please also check the New Jersey Courts website for updates on how and when the trial will take place.

Can my utilities, water, phone, and internet be shut down during the COVID-19 crisis?

No. As of March 13, 2020, the New Jersey electric and gas utilities voluntarily suspended supply shutdowns. On March 3, 2021, the governor’s office issued Implementing Ordinance 229. This ordinance suspends the shutdown of supply and water in residential areas to June 30th, 2021and prohibits the collection of late fees incurred during the emergency period. Additionally, the mandate requires cable and telecommunications providers to offer their customers specific payment plans and prohibits companies from cutting off customers as long as they make timely payments under such plans. Internet service providers must also check with existing customers whether school-age children use the Internet service for educational purposes. In this case, the provider may not be able to stop the service until June 30, 2021. If internet services were previously interrupted and a school-age child later needs to use the account for educational purposes, the provider must restore service immediately.

Do I still have to pay for utilities and water?

Yes. You still have to pay the electricity, gas, water, phone, or internet bills that you normally pay. If you can’t pay now, you’ll have to pay later. The Department of Community Affairs (DCA) offers low-income tenants Help with some utility bills;; You can call the customer service number on your utility bill or look it up Hereto try to work out a payment plan; or you can check them out website the Board of Public Utilities for a list of agencies that offer assistance.