New Jersey Gov. Phil Murphy announced Wednesday that the state is allocating $10 million in funding to prevent foreclosures.

The funding from the American Rescue Plan Act of 2021 (ARPA) will go to support New Jersey’s Foreclosure Prevention Act program administered by the New Jersey Housing and Mortgage Finance Agency (NJHMFA).

The Murphy administration will use the funds to purchase non-performing mortgage notes from the FHA before foreclosure proceedings. If the homeowner lives on the property, efforts will be made to assist them. If the property has been abandoned, the state will take steps to obtain the title, complete any required rehabilitation work, and place the property back on single-family home market.

“The Foreclosure Prevention Act was more than a decade in the making. My administration is proud to have signed this landmark legislation adding to our state’s capacity to address the concerns of current New Jersey homeowners and future homebuyers,” Murphy said in a statement, adding that he hopes the program will "continue to grow."

Following the 2008 financial crisis, New Jersey’s single-family residential market was gravely impacted, with many properties being purchased by investors and converted to rentals, reducing the stock of affordable single-family homes. Across the nation, the economic fallout from the COVID-19 pandemic on homeowners may lead to a similar losses of single-family homes.

“Home ownership is the foundation for building intergenerational wealth and provides people long-term financial, mental and physical stability,” Lt. Gov. Sheila Oliver said in a statement.

Source: nbcnewyork