New Jersey Assemblyman Proposes Foreclosure Moratorium

New Jersey Foreclosure News

A member of the New Jersey General Assembly asked the state's attorney general on Wednesday to implement a 180-day foreclosure moratorium to help borrowers trapped in risky loans.

In a letter to Attorney General Stuart Rabner's office, Assemblyman Neil Cohen, said the state needs time to research all foreclosures related to subprime loans issued by companies like New Century Financial Corp., Accredited Home Lenders Holding Co., Fremont General Corp., Countrywide Financial Corp., and Wells Fargo. Cohen added that New Jersey must also focus on “any other subprime lenders that are going out of business or in jeopardy of going out of business.”

Cohen concluded his letter to the attorney general by saying, without government intervention, New Jersey will “without a doubt, see a dramatic increase in the amount of New Jersey homeowners defaulting on their mortgages. We need to act before the effects of this meltdown trigger absolute chaos in the entire lending industry and undermine our entire economy.”

Click here to read Cohen's full letter to the New Jersey Attorney General.

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