A New Jersey law aims to help people with debt through a housing program
NEW YORK—As the housing market slowly heals, many people who have fallen behind on their mortgage payments are turning to an unlikely source of help: debt relief.
As of Wednesday, New Jersey had the third largest amount of state and federal money available for people struggling with debt, after New York and California.
In addition to offering debt relief, the New Jersey program allows people with outstanding balances of more than $200,000 to get loans.
While this could be a good option for those who have a credit history, it’s also a bit of a catch-22 for those looking to get their debts forgiven.
To qualify for this program, you’ll need to have outstanding debt between $250,000 and $500,000.
If you’re already in debt, the state will pay the balance on your behalf, which could amount to hundreds of thousands of dollars.
That’s not enough to get you out of the hole, but it does allow you to save money.
In a press release announcing the program, Gov.
Chris Christie said it “gives New Jerseyans access to affordable and quality housing while saving taxpayers billions.”
While the program is currently limited to a small number of low-income households, it has the potential to be more expansive if more borrowers are willing to pay down their debts.
The state’s program was announced in February.
It has now become a top priority for lawmakers and the governor, who is considering legislation to increase the amount of money available.
“This bill gives New Jerseyers access to affordability, quality housing, and reduces the burden of our nation’s financial crisis,” said Christie in a statement.
“Our economy is stronger when we have more housing and more housing is the number one reason New Jersey’s economy is growing,” he added.
“We’re proud to work with our state partners, including the federal government, to help New Jersey rebuild our housing stock.
I thank them for their work in this effort.”
The New Jersey Office of Financial Literacy and the National Housing Federation have already taken the lead in developing a plan to help low- and moderate-income New Jersey residents.
“The New York Housing Authority, New York City Housing Authority and other local housing authorities have helped New Jersey homeowners with financial assistance to make housing payments through the program,” the New York Times reports.
“This is an important step to help homeowners refinance their mortgages, reduce their mortgage debt, and start a new life.”
New Jerseyans are already the largest group of homeowners who qualify for the program and the program will help provide more opportunities for homeowners who are struggling to make their mortgage payment.
“This post was updated at 8:43 a.m.