Mortgage forbearance is an agreement with your lender not to initiate foreclosure proceedings against you due to delays in payments to your lender pursuant to your mortgage arrangement. In New Jersey, foreclosure orders are suspended for a period not exceeding two months. This means that the lender is unable to take legal ownership of your property to settle a debt that is owed by the homeowner. On March 28, 2020, Governor Phil Murphy announced a ninety (90) day grace period for mortgage payments for borrowers economically impacted by the COVID-19 outbreak. Banks are offering mortgage payment forbearance where homeowners can temporarily pause or reduce monthly mortgage payments for a set period of time, approximately sixty (60) days. Further, late fees and other expenses may be waived.
