All of the resources listed on this page have more information about foreclosure on their websites. The U.S. Department of Housing and Urban Development (HUD) through the Federal Housing Administration (FHA) provides comprehensive information about how to avoid foreclosure with special emphasis on alternative arrangements that you may be able to reach with your lender. Read their Guide to Avoiding Foreclosure.
Stabilizing Urban Neighborhoods (SUN)
The SUN initiative works to stabilize neighborhoods by preventing foreclosure-related vacancies before they occur. SUN helps homeowners with a stable income stay in their home by acquiring foreclosed properties and reselling these homes to their existing occupants with mortgages they can afford. To qualify for SUN, a homeowner needs to be (1) late on their mortgage, (2) live in New Jersey, and (3) have a stable income. To apply, homeowners can call SUN at 855-604-4663 (toll-free) or visit their website.
What do I do when I can't pay my mortgage?
Home Loans for All has 7 options and steps that you can take when you can't make your mortgage payment.
Foreclosure Prevention Counseling
Online and telephone counseling is available through the Homeownership Preservation Foundation. This organization is dedicated to helping homeowners avoid foreclosure. Their toll-free hotline is staffed with trained counselors and is open 24 hours a day, 7 days a week. You can reach them by phone at 888.995.HOPE (888-995-4673). Their website offers an informative section entitled Understanding Foreclosure where you will find a full glossary of foreclosure terms, reviews the stages of foreclosure and alternatives to foreclosure.
Free or low-cost advice from housing counseling agencies that have been sponsored by the US Department of Housing and Urban Development (HUD) is available in our state. Here is a list of HUD Approved Counselors.
New Jersey's Hardest Hit Fund
This program is funded through a federal grant and consists of the NJ HomeSaver and NJ HomeKeeper programs. New Jersey HomeSaver offers eligible homeowners up to $50,000 in financial assistance to help bring their household monthly payment to an affordable level. New Jersey HomeKeeper offers eligible homeowners up to $48,000 in financial assistance to cover arrearages and/or monthly mortgage payments (including principal, interest, taxes, and insurance) for up to 12 months.
You are eligible for assistance if you meet all of the following requirements:
- You are a New Jersey homeowner at risk of foreclosure through no fault of your own
- You own only one residential home (one, two, or three-units), and currently, reside in that home
- You have suffered a qualifying involuntary financial hardship that caused or will cause you to fall behind on your mortgage payment. Hardships that may qualify homeowners for assistance include: An involuntary loss of employment income; A reduction in household income due to underemployment or other demonstrated financial hardships including medical, divorce, disability or death
Mortgage Refinancing Options
The Stay at Home Streamline Refinance Program offers mortgage refinancing for struggling homeowners. Refinancing comes in the form of a 30-year, fixed interest loan that is backed by the New Jersey Housing and Mortgage Finance Agency. Find out more information here or by calling 800-NJ-HOUSE (800-654-6873).
Mortgage refinance programs are available through the Neighborhood Assistance Corporation of America (NACA) This national non-profit community advocacy and housing services organization offers free counseling and will take you through the refinancing process. You can learn more and start the online application by clicking here.
If you are having trouble making your mortgage payments, HOPE for Homeowners (H4H) may be able to help you, by refinancing your loan into a new 30-year or 40-year fixed-rate loan with lower payments. To find out if you are eligible, you must call your lender and inquire with them. More information on this program is available here or by calling 800-CALL-FHA (800-225-5342).
Mortgage Assistance for Military Personnel
Mortgage payment relief and protection from foreclosure are provided to active military personnel and reservists through the Servicemembers Civil Relief Act (SCRA). To be eligible for this program you must have had mortgage commitments before enlisting or being called to active duty. Reservists, guardsmen, and other eligible servicemembers should contact their lenders and other creditors and provide documentation that they have been called to active duty and are eligible for certain relief under the SCRA. To learn more about this program you can call 800-CALL-FHA (225-5342) or read their fact sheet.
Emergency Financial Assistance
Homelessness Prevention Program - This program provides limited financial assistance to low and moderate-income tenants and homeowners in imminent danger of eviction or foreclosure due to temporary financial problems beyond their control. To learn more, contact the office in your area. Find a listing of local contacts here.
Learn more about the programs and services provided through the Department of Community Affairs (DCA) here.
The Social Service for the Homeless (SSH) program provides assistance to New Jersey residents who are at risk of homelessness, but are ineligible for Temporary Assistance for Needy Families welfare, General Assistance welfare or Supplemental Security Income. If you are eligible for this program, SSH may pay for emergency food or shelter for a limited time and may also provide money for rent, mortgage, utility, and security deposit assistance.
In response to the economic distress that many in our state are suffering from, eligibility guidelines have been changed to include those with higher incomes (a family of four with a monthly income of not more than $6,183 is eligible for service) and the length of time for services has been extended to 4 months. Local assistance is available 24 hours a day. Find your area's hotline number.