New Jersey's Government Responds to Mortgage Meltdown

Gerry Green, Chairman of the Assembly Housing and Local Government Committee, has co-authored Assembly bill 2517.

The crux of the bill will provide grants to qualified counseling agencies to provide foreclosure prevention counseling, emergency foreclosure prevention assistance, as well as loans and grants to non-profits for the purpose of purchasing mortgage loans and properties from creditors.

The funds would come from the Foreclosure Prevention Revolving Trust Fund within in the department of Community Affairs.

The bill calls for future funding to come from lenders who issues a notice to foreclose on a mortgage pursuant to the "Fair Foreclosure Act," P.L..1995, c.244 (C.2A:50-53 et. seq.). Upon filing the notice, lenders will be required to make a deposit to the fund in the amount of $2000.

For more information review the New Jersey Homeownership Preservation Act.