REMOVALS

Can I be removed from my home as a result of a foreclosure proceeding during the COVID-19 emergency?

No. On March 19, 2020, New Jersey Governor Philip Murphy issued Executive Order 106, which immediately suspends evictions and removals throughout the state. This is called an “eviction moratorium,” and it means that, except in rare circumstances, no homeowner may be removed from his or her home as a result of a foreclosure proceeding at this time. You cannot be removed even if a final judgment of foreclosure has been entered and a sheriff’s sale of your property has taken place. The eviction moratorium does not affect court proceedings; instead, it prevents removals. The New Jersey Supreme Court controls court proceedings related to foreclosure. More information is below.

How long will the eviction moratorium last?

The eviction moratorium began on March 19, 2020, and it will last until two months after Governor Murphy declares an end to the COVID-19 health crisis, unless the Governor issues another Executive Order to end it sooner. 

Do I still need to pay my mortgage?

Yes. But lenders may be flexible if you are struggling. The governor has asked mortgage institutions to work with homeowners to avoid foreclosure or default caused by the COVID-19 pandemic.  For example, the Governor has asked the mortgage institutions to relax due dates for loan payments, extend grace periods, modify terms on existing loans, and waive late fees. If you need help to avoid a potential foreclosure, you can call the New Jersey Housing and Mortgage Finance Agency for free counseling over the phone. Visit https://njhousing.gov/foreclosure to access a list of counselors by county.

If I can’t afford to pay my mortgage and fall behind, will I still owe the money?

Yes. Any payments you miss now will become part of what you owe. One way or another, you will probably have to pay later whatever you cannot pay now, or you will ultimately face possible foreclosure and removal from your home. However, Governor Murphy has announced some important relief for homeowners with mortgages. If you contact your mortgage lender, you may be eligible for: (1) a 90-day grace period for mortgage payments (meaning that you can postpone paying for up to 90 days); (2) assurance that the lender will not report late or missed payments during this period to credit agencies; (3) a 60-day moratorium on lenders’ initiation of foreclosure sales or evictions; and (4) relief from certain fees and charges for at least 90 days. For more information, check the FAQs issued by the state. You can also check the website of New Jersey Housing and Mortgage Finance Agency for updates on available help.

Is there a national moratorium on evictions?

Yes, for some homeowners. On March 18, the U.S. Department of Housing and Urban Development (HUD) announced a foreclosure and eviction moratorium that applies to single-family homeowners with Federal Housing Authority (FHA)-insured mortgages for 60 days. Fannie Mae and Freddie Mac will also suspend foreclosures and evictions for at least 60 days for homeowners behind on their mortgages. Federal developments are being tracked on the website of the National Low Income Housing Coalition.

COURT HEARINGS

Can lenders still begin foreclosure proceedings during this period?

Yes. The Executive Order and related legislation specifically state that lenders can bring foreclosure actions during the time the order is in effect.  We understand that the Superior Court Office of Foreclosure is still accepting new cases and electronic filings in existing cases. Under an agreement with the state, however, many lenders have suspended foreclosure sales and evictions until May 27 (60 days from March 28).

Will the Foreclosure Office process cases during this period?

That depends. The Foreclosure Office administers parts of most foreclosure cases and manages most of the process when a foreclosure is “uncontested,” meaning that the homeowner did not file an answer to the complaint. Under a March 27 order issued by the New Jersey Supreme Court, however, the Office of Foreclosure will not review or act on motions or judgments it received after March 1, 2020. Thus, if the lender asks the Foreclosure Office after March 1 to enter a final judgment against the homeowner or seeks other action to advance the foreclosure, the Office will hold those requests for now. The Supreme Court’s order will remain in effect until the Court lifts it. Please check the New Jersey Courts website for updates on court orders affecting how and when uncontested foreclosure cases will proceed. If you have questions about an uncontested foreclosure case that is pending, you can also try contacting the Office of Foreclosure at 609-421-6100 or Scco.Mailbox@njcourts.gov.

Will the courts hear foreclosure cases during this period?

Yes. To date, there is no order suspending court hearings in contested foreclosure cases (in which the homeowner answered the complaint). Please note, however, that the courthouses are closed, and in-person hearings are suspended through April 26 under this Supreme Court order. If you have a court hearing scheduled between now and April 26, either it will be held by video or telephone conference, or it will be postponed. Please check with the court where the case is pending if you have questions. Please also check the New Jersey Courts website for updates on whether the Court extends the suspension of in-person hearings.

Can my utilities be shut off during the COVID-19 crisis?

No. New Jersey’s electric and gas utilities have voluntarily suspended utility shut-offs during the crisis. Check New Jersey Board of Public Utilities website for updates. 

In addition, on March 23, the state legislature introduced a bill that would prohibit shutoffs of electricity, gas, or water public utility services to residential customers during epidemics such as COVID-19. Check the state’s COVID-19 website or the New Jersey Legislature website to stay informed as new laws are enacted.

Do I still have to pay for utilities and water?

Yes. You still have to pay your electric, gas, and water bills. If you cannot pay now, you will have to pay later. The utilities and water companies are not cancelling debts; they are just postponing shutoffs for the time being. DCA offers low-income homeowners assistance with some utility bills.