New Bill Would Suspend Interest Payments On Mortgages For Employees Aggrieved By Violations Of The New Jersey WARN Act

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Explore:  Mortgages WARN Act

On February 25, 2014, a bill was introduced and referred to the Senate Commerce Committee that would allow employees to suspend payment of interest on their mortgages if they were affected by a violation of the Millville Dallas Airmotive Plant Job Loss Notification Act (NJ WARN Act). The bill would apply only to individuals domiciled in New Jersey and would require them to obtain a court order finding that their employer violated the NJ WARN Act. In the event such an order is obtained, the employee can suspend interest payments on his or her mortgage for a period of one year, beginning on the date of the order. The employee is still obligated to pay all other amounts required by the mortgage agreement (e.g., principal, escrow, or other fees) and the suspended interest payments must be paid in equal installments over the remainder of the mortgage. While this new bill does not create any additional liability for employers, it may raise the likelihood that an employee will pursue court action in connection with potential NJ WARN Act violations.

Note: This article was published in the March 2014 issue of the New Jersey eAuthority.

Topics:  Mortgages, WARN Act

Published In: Finance & Banking Updates, Labor & Employment Updates, Residential Real Estate Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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