Avoid Foreclosure With New Jersey's Hardest Hit Program

The New Jersey HomeSaver Program provides up to $50,000 to eligible homeowners so they can avoid foreclosure.

The New Jersey Hardest Hit Fund program called "HomeSaver" provides money to homeowners facing a foreclosure so they can get a more affordable monthly payment through a refinance, recast, or permanent modification on their first mortgage loan.

Read on to get details about the HomeSaver program. (To learn about foreclosure laws in New Jersey, and programs to assist New Jersey homeowners, visit our New Jersey Foreclosure Law Center.)

Hardest Hit Fund

In 2010, the U.S. Department of the Treasury created the Hardest Hit Fund to provide targeted aid to homeowners in those states most affected by the housing market crash. As part of this program, $7.6 billion in aid was allocated to the 18 states, including New Jersey, along with Washington, D.C., that experienced the most extreme home price declines and high unemployment rates as a result of the economic crisis. More funding was approved in 2016. (Learn more about the Hardest Hit Fund.)

New Jersey was originally awarded over $300 million in funds through the Hardest Hit Fund to help eligible homeowners avoid foreclosure. (Learn more about the New Jersey foreclosure process.)

The New Jersey HomeSaver Program

The HomeSaver Program provides up to $50,000 to homeowners so they can bring their monthly mortgage payment to an affordable level through a refinance, recast, or permanent modification of the first mortgage loan.

Borrower Eligibility

To be eligible for HomeSaver assistance, you must meet all of the below criteria.

    • You must occupy the subject property as your primary residence.
    • You must have a qualified hardship, like an involuntary loss of employment income or a reduction in household income due to underemployment. Medical expenses, divorce, disability, or death also can qualify.

    Home Eligibility Criteria

    Additionally, your existing mortgages and the property securing the mortgages must meet the below criteria.

    • The property must be located in New Jersey.
    • The home cannot be abandoned, vacant, condemned, or uninhabitable.
    • The home must be a one- to three-family residential property or a condominium unit. Co-ops are ineligible.
    • The mortgage must be a first lien mortgage.
    • The current unpaid principal balance can't be more than $429,619 for a one-unit property or $550,005 for a two- or three-unit property (including the interest-bearing principal and any outstanding non-interest bearing forbearance balance from a previous modification).
    • You must be delinquent or at risk of imminent default on your mortgage payments.

    Manufactured homes are eligible for the program if on a permanent foundation that is affixed to real property owned by the homeowner and secured by a real property first mortgage lien. (Learn more about what happens if you are struggling to pay your manufactured home loan.)

    Servicer Participation

    Servicer participation in this program is voluntary. (A mortgage servicer is the company that collects monthly mortgage payments from borrowers on behalf of the owner of the loan, as well as tracks account balances, manages the escrow account, handles loss mitigation applications, and pursues foreclosure in the case of defaulted loans.)

    Program payments are made directly to the mortgage servicer.

    How to Apply

    To apply for the HomeSaver program, go to the New Jersey Housing and Mortgage Finance Agency website and click on the “Click Here to Apply” button to start your application.

    For More Information

    To get more information, including information about the current status of the program, go to the Hardest Hit Fund page of the New Jersey Housing and Mortgage Finance Agency. You can also call 855-647-7700 or 609-278-7660 or email hardesthitnj@njhmfa.gov.

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