New Jersey § 46:10b-40

§ 46:10b-40.

the terms of N.J.S.A. § 46:10B-48 .> a. Notwithstanding any law or contract right to the contrary, prior to the initial

interest rate reset of an introductory rate mortgage, a creditor shall provide an

eligible borrower a period of extension for three years as provided in this section,

during which the interest rate on the introductory rate mortgage shall not increase

above the original introductory rate, provided the eligible borrower completes and

returns a certification of extension to the creditor in accordance with the provisions

of this section. b. In order to obtain the period of extension, the eligible borrower shall provide

to the creditor, prior to the date that the interest rate resets under the terms of

the introductory rate mortgage, a completed certification of extension form signed

by the eligible borrower, which contains: (1) the name of the eligible borrower; (2) the address of the property; and (3) an affirmative statement that the eligible borrower: (a) does not have sufficient monthly income, after deductions for necessary living

expenses, to pay the monthly payments that will apply after the date that the interest

rate resets; (b) requests the period of extension; (c) agrees to continue, during the period of extension, monthly payments, which shall

include principal and interest calculated at the introductory rate on the date that

the introductory rate mortgage was originated, as well as amounts for taxes, insurance,

and any other amounts being paid under the terms of the mortgage prior to the interest

rate reset; (d) agrees to pay the creditor, at the time of the full repayment of the introductory

rate mortgage, any interest deferred on account of the period of extension; (e) agrees to accept the creditor's placement of a modification of mortgage on the

property to secure the repayment of the interest deferred on account of the period

of extension; and (f) agrees to sign a modification of mortgage form that contains the terms of the

period of extension and any documentation necessary to establish or record the modification

of mortgage. c. An eligible borrower who makes a knowing material misrepresentation in a certification

of extension is guilty of a crime of the fourth degree. d. The creditor, upon receiving the completed certification of extension, shall grant

the eligible borrower the three-year period of extension, which shall commence on

the date that the introductory rate is due to reset under the terms of the introductory

rate mortgage. e. Within a reasonable amount of time after the receipt of a completed certification

of extension from an eligible borrower, a creditor shall provide to the eligible borrower

a written acknowledgment that the certification of extension has been received. The acknowledgment shall contain the following: (1) the monthly payment amount that is due from the eligible borrower during the period

of extension, which shall include principal and interest, calculated at the introductory

rate on the date the introductory rate mortgage was originated, as well as amounts

for taxes, insurance, and any other amounts being paid under the terms of the mortgage

prior to the interest rate reset; (2) a schedule of payments, indicating the date that the first monthly payment is

due and the dates that each subsequent monthly payment is due during the period of

extension; (3) the address to which the eligible borrower shall send the monthly payment; and (4) a statement of proposed modification of mortgage, which shall include: (a) a notice to the eligible borrower that the creditor will place a modification

of mortgage on the property that is the security for the introductory rate mortgage,

to secure the eligible borrower's repayment of the amount of interest deferred by

the period of extension; and (b) an explanation of the method the creditor will use to calculate the amount of

the interest deferred by the period of extension. f. (1) A creditor who grants a period of extension to an eligible borrower shall have

the right to record a modification of mortgage on the eligible borrower's property

in the public records in the county in which the property is located to secure the

eligible borrower's repayment of the amount of interest deferred by the period of

extension. The modification of mortgage shall be effective from the date that it is executed. Notwithstanding any law to the contrary, the modification of mortgage shall have

the same priority as the lien of the introductory rate mortgage. Upon payment by the eligible borrower of the total amount of interest deferred pursuant

to the period of extension, which shall only be due upon full repayment of the introductory

rate mortgage, the creditor shall provide the eligible borrower with a recordable

satisfaction of the modification of mortgage, or otherwise cause the modification

of mortgage to be discharged of record. (2) If an eligible borrower fails to return to a creditor, who has a right to record

a modification of mortgage pursuant to paragraph (1) of this subsection, a properly

executed modification of mortgage or any other documentation necessary to establish

or record the modification of mortgage, within 30 days from the borrower's receipt

from the creditor of a modification of mortgage form, the creditor may record the

eligible borrower's certification of extension in place of the modification of mortgage. Notwithstanding any other law to the contrary, the certification of extension shall

have the same priority as the lien of the introductory rate mortgage. Upon payment by the eligible borrower of the total amount of interest deferred pursuant

to the period of extension, the creditor shall provide the eligible borrower with

a recordable satisfaction of the certification of extension, or otherwise cause the

certification of extension to be discharged of record. g. A creditor shall not require an eligible borrower to limit or waive the rights

of the borrower to bring any claims, defenses, demands, proceedings, actions, or causes

of action against the creditor as a condition of accepting an offer of any loss mitigation

activities made available by the “Save New Jersey Homes Act of 2008,” P.L.2008, c. 86 ( C.46:10B-36 et seq. ). h. An eligible borrower who has been granted a period of extension shall forfeit all

rights concerning deferment of interest payments provided by this act if the eligible

borrower fails to make payments under the schedule of payments set forth in the creditor's

acknowledgment of the period of extension or fails to comply with the terms of any

modification of mortgage entered into between the creditor and the eligible borrower

relating to the period of extension, such that the modification of mortgage becomes

60 days delinquent.