This bill aims to improve access to foreclosure counseling services for homeowners in New Jersey. It amends existing laws to ensure that financial counseling is available to homeowners facing foreclosure, regardless of their intention to participate in foreclosure mediation. Specifically, the bill mandates that when a residential mortgage lender issues a notice of intention to foreclose, they must notify the New Jersey Housing and Mortgage Finance Agency (HMFA) within one business day. This notification will trigger outreach from trained foreclosure prevention and default mitigation counselors to offer assistance to the homeowner.

Additionally, the bill establishes that the New Jersey Foreclosure Counseling Fund will continue to support these counseling services, ensuring that trained counselors are available to help homeowners navigate their options. The bill also includes provisions for the lender to provide detailed information to the homeowner about their rights and available resources, including the right to seek legal counsel and potential financial assistance programs. The bill is set to take effect four months after its enactment, with HMFA required to adopt necessary regulations by that time.

Statutes affected:
Introduced: 2A:50-56, 2A:50-81, 2A:50-82