N.J. Legislators Approve Bill Preventing Foreclosures for Sandy Victims

A bill heading to New Jersey Gov. Chris Christie’s desk would prevent mortgage foreclosure for New Jersey homeowners whose houses were damaged by Superstorm Sandy.

The bill, which passed the Legislature on Dec. 17, would prevent foreclosures for up to three years if it is signed into law.

The measure is designed to help storm victims who are eligible for state aid disbursements but who have not received them face foreclosure and as a result.

Sandy victims could get a stay of foreclosure proceedings if they are eligible for the Reconstruction Rehabilitation, Elevation and Mitigation program or the Low- to Moderate- Income Homeowner’s Rebuilding Program but haven’t received funds.

Sandy made landfall in New Jersey on Oct. 29, 2012, and the governor’s office estimates 365,000 buildings were damaged, based on the number of insurance claims.

The Fair Share Housing Center says 40,500 primary residences and 15,600 rental units sustained “severe” or “major” damage in the storm.

For Sandy victim homeowners currently in foreclosure litigation and eligible to receive relief funds, homeowners could apply for a stay of proceedings.