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CARES Act Mortgage Forbearance

Posted by Scott Goldstein | Bankruptcy

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was passed into law in March of 2020. The primary federal economic response to the COVID-19 pandemic, the CARES Act contains a wide range of different relief measures, including for certain mortgage foreclosure protections.

However, the protections have largely come to an end. Many financially distressed homeowners are trying to navigate their options. In this article, our New Jersey bankruptcy lawyer provides a guide to the most important things to know about CARES Act mortgage forbearance in 2022.

COVID-19 Related Mortgage Foreclosure Moratoriums are Over in New Jersey

As part of the CARES Act, a moratorium was put into place that temporarily prevented mortgage foreclosures. Technically, the federal mortgage moratorium came to an end in early August of 2021. The New Jersey state mortgage foreclosure moratorium remained in effect for a few months longer—until November 15th. Nonetheless, all COVID-19 foreclosure moratoriums are now over. Foreclosures have resumed and are expected to pick up speed in the coming months.

An Overview of Your Options If You are Still Struggling to Make Mortgage Payments

The end of the CARES Act foreclosure moratorium does not mean that everyone who is behind on their payments will immediately face a foreclosure. As explained by the Consumer Financial Protection Board (CFPB), federal regulations have been put into place that state that a “mortgage servicer cannot require you to repay your skipped payments in a lump sum once the forbearance period ends.” That being said, there are financially distressed homeowners who may be at a significant foreclosure risk in the near future—especially if they are behind on forbearance payments. Here are three options if you are still struggling to pay your mortgage:

  1. Mortgage Assistance: You may be eligible to receive some form of financial support through the New Jersey Emergency Rescue Mortgage Assistance (ERMA) program. A maximum of $35,000 in support is available for qualifying borrowers.
  2. Foreclosure Mediation: It may be possible to work out some form of agreement with your lender or mortgage service company. New Jersey currently has an expanded foreclosure mediation program in place. Our law firm helps people navigate foreclosure mediation.
  3. Personal Bankruptcy: If you and your family are dealing with serious financial issues, personal bankruptcy (Chapter 7 or Chapter 13), may be the best available option. Among other things, a bankruptcy filing can pause an active foreclosure case. If you have any questions, contact our New Jersey bankruptcy lawyer.

Contact Our New Jersey CARES Act Mortgage Forbearance Attorney for Immediate Help

At the Law Offices of Scott J. Goldstein LLC, New Jersey personal bankruptcy lawyer has the skills and experience to help people and families dealing with financial distress. If you have any questions about CARES Act mortgage forbearance, we are more than ready to help. Contact us today at 973-453-2838. We provide legal representation to clients in North Jersey and New York.