New Jersey governor Phil Murphy announces a 90-day grace period

Mar 28, 2020 10:25 PM ET

New Jersey Governor Phil Murphy speaks after taking the oath of office in Trenton, New Jersey on January 16, 2018.

Lucas Jackson | Reuters

New Jersey homeowners whose finances are affected by the novel corona virus are given a 90-day deadline for their mortgage payments, Governor Phil Murphy said on Saturday.

The lenders will also waive late fees and other costs that would otherwise arise for the borrowers due to the grace period, Murphy announced in a tweet.

For COVID 19 reasons, the banks offer mortgage payments of up to 90 days. With forbearance, mortgage holders can pause or reduce the amount they pay each month for a period of time.

Under the New Jersey contract, lenders offer homeowners an optimized leniency application process. They offer borrowers the opportunity to ask for further relief if they continue to show that they are facing coronavirus problems.

In general, borrowers are expected to make up for late payments later. Homeowners should carefully consider the terms of the contract when requesting a deferral for a mortgage.

More than 40 lenders, including Citi and JPMorgan Chase, are working with New Jersey on mortgage relief, Murphy said. The banks have also committed not to initiate enforcement or eviction proceedings for at least 60 days, he said.

“This grace period cannot and will NOT be used to downgrade people’s credit ratings,” Murphy tweeted.

According to Murphy, more than 11,000 New Jersey residents have tested positive for COVID-19. At least 140 people in New Jersey have died from it.

The governor also expects the landlords to keep their tenants in their homes.

“Let me be clear to any tenant who is about to vacate – due to an executive order, your landlord cannot throw you out of your house in this emergency,” Murphy tweeted.

“For every landlord who receives mortgage relief today, we expect you, in turn, to give your tenants similar relief,” he said.

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