Singleton, Johnson Bill to Establish Foreclosure Protections for Victims of Hurricane Ida Clears Senate

TRENTON – In an effort to further assist homeowners negatively impacted by Hurricane Ida, the Senate today advanced legislation sponsored by Senators Troy Singleton and Gordon Johnson that would establish mortgage relief and foreclosure protections to certain homeowners impacted by the remnants of Hurricane Ida. 

“Despite the provision of federal aid, many families whose homes were damaged by Hurricane Ida remain financially burdened from the effects of the storm. Extreme flooding necessitated costly repairs, replacement of damaged possessions, and other financial challenges,” said Senator Singleton, the Chair of the Senate Community and Urban Affairs Committee (D-Burlington). “This legislation is meant to further assist these homeowners in recovering from the impacts of the storm by providing mortgage relief and temporary foreclosure protections.”  

The bill, S-1443, would allow storm-impacted homeowners, defined as homeowners who, as of August 31, 2o21, occupied a residential property as their primary residence and obtained federal disaster relief for needs as a result of damages sustained to their home from the remnants of Hurricane Ida, to submit written requests to their mortgage servicer for a mortgage forbearance prior to the first day of the sixth month following enactment. Mortgage servicers would be required to grant the forbearance for a period of a year if the homeowner meets certain requirements and requests the forbearance within the aforementioned time period. 

“Due to the substantial flooding caused by Hurricane Ida, many homeowners continue to face financial difficulties making their mortgage payments, or have even been forced to enter foreclosure proceedings,” said Senator Johnson (D-Bergen). “By establishing protections from foreclosure and providing forbearances, we will give these families a lifeline while also helping to prevent possible homelessness for those who may be in danger of foreclosure.”

If a storm-impacted homeowner is in the midst of foreclosure proceedings, they would be awarded a stay in the proceedings if the same conditions necessary to obtain a mortgage forbearance are satisfied and an application is made to the court within the aforementioned time period, or longer if the court determines to permit applications for a different period of time. The award of the stay would last for a year from the initial award of the stay, or until January 1, 2026, whichever is earlier. 

The bill was passed in a unanimous vote.