Sen. Menendez Announces Federal Funds to Help Families Facing Foreclosure

New Jersey is slated to receive an additional $188 million in federal funds under a program to help homeowners on the verge of foreclosure, U.S. Sen. Robert Menendez (D-NJ) announced at a press conference in the Township Council chambers Tuesday.

Menendez 's announcement adds to the $112 million allocated to New Jersey in September, bringing a total of $300 million to the state from the federal Hardest Hit Fund.

The investment will provide interest-free loans to unemployed and underemployed homeowners for up to two years at $48,000. Regulations are still being hashed out, but Menendez said the loans might become grants in certain situations.

Menendez also announced he had sent letters to 117 mortgage companies questioning their foreclosure processes.  The issue came to light after reports that lenders had signed affidavits supporting foreclosure proceedings without reviewing individual cases.

"For my mind, home is one of the most important American concepts we have," Menendez said. "It is really about preserving the very essence of what create a sense of community like here in Teaneck."

Teaneck homeowner Jane Wright joined the senator at the announcement. Wright, who lives with her daughter, has struggled to pay the mortgage on her Maple Street home after the two lost their jobs.

"This is a very good deal for families who just want to stay in their homes," Wright said.  "We don't want to leave our homes. We want to stay in our homes and make our families financially secure."

Wright also said more transparency was needed throughout the home-buying process.

In Bergen County, foreclosures have impacted people from a range of backgrounds and incomes, said Anthony Suber, interim chief executive officer and housing counselor at the county's Urban League.

"We're seeing people with low to moderate incomes and we're seeing people that were earning a significant income at one time," Suber said.

Mayor Mohammed Hameeduddin said vacant homes sometimes require services from township departments.  When residents complain about empty properties, town crews bill the owner, often banks, for any work.

Hameeduddin said the program was a "lifeline" to residents in town facing foreclosures.

Money will be available in January and managed by the New Jersey Housing and Mortgage Finance Agency. Details on how to qualify for the program can be found on the Housing and Mortgage Finance Agency website.

Since 2006, foreclosures in New Jersey have skyrocketed nearly 200 percent, according to a news release from the governor's office.  The state will announce more specifics on the program Wednesday, a Department of Community Affairs spokeswoman said.