New Jersey § 46:10b-37

§ 46:10b-37.

the terms of N.J.S.A. § 46:10B-48 .> The Legislature finds and declares that: a. Many thousands of New Jersey homeowners are at risk of losing their homes as a

result of mortgage foreclosures in the immediate future; b. Foreclosure of a family's home often represents the loss of the family's most valuable

financial asset, and foreclosures undermine the health and economic vitality of neighborhoods; c. Foreclosures result in the loss of millions of dollars in assets, not only those

of the homeowners who are the victims of foreclosure, but also in terms of the property

values of homes located in the vicinity of foreclosed properties, as well as millions

in additional costs to state and local government for the loss of property tax revenue; d. According to a report issued by the U.S. Government Accountability Office (GAO)

in October 2007, New Jersey experienced an increase in residential mortgage foreclosure

start rates in excess of 50% over the prior two years and the GAO found that defaults

and foreclosures on mortgages have a significant economic impact on homeowners, lenders,

and neighborhoods; e. According to a report issued in April 2008 by the State Foreclosure Prevention

Working Group, which is composed of banking regulators and attorneys general of 11

states, the collective efforts of mortgage lenders and government officials to address

rising foreclosures has not resulted in meaningful improvement in foreclosure prevention,

and new approaches, such as targeted efforts to slow down the foreclosure process,

are needed to prevent millions of unnecessary foreclosures nationwide; f. Foreclosures are largely the result of subprime lending practices, which have placed

many homeowners in loans that they cannot realistically afford, by using mortgage

loan features such as low introductory rates which reset to higher, variable rates,

thereby increasing the risk of default for many homeowners in the State who, at an

increasing rate, cannot sell their home or refinance their mortgage; g. Industry analysts estimate that, nationwide, about 1.5 million mortgages are due

to reset in 2008, and that as many as three million subprime mortgages could end up

in foreclosure over the next several years; and h. There is a compelling need for the State of New Jersey to address the ongoing economic

crisis in the subprime mortgage market and to provide the means by which homeowners

can obtain a period of extension to adjust their finances in order to increase their

ability to retain their homes, encourage mortgage lenders to modify mortgage loan

terms and resolve foreclosure disputes, and protect local governments and neighborhoods

from the negative social, economic, and fiscal consequences of foreclosure and abandonment.