1 in 5 people in New Jersey at risk of eviction, foreclosure: report
NEW JERSEY – As the coronavirus crisis in New Jersey subsides, a new problem looms. One in five people in Garden State are at risk of losing their home through eviction or foreclosure, according to a new report from QuoteWizard.
According to the report, 13.1% of New Jersey residents are at high risk of deportation, while 7.1% are at risk of being evicted. Another 8.3 percent are behind on mortgage payments.
“We have rising housing costs, prolonged unemployment and stagnant incomes and when you combine these three things people really worry that they can’t afford to keep a roof over their heads,” Nick said. VinZant, senior research analyst for QuoteWizard.
Governor Phil Murphy issued an executive order in March 2020, which states that residents cannot be evicted from their properties by eviction or seizure during the state of public health emergency. The moratoriums will remain in effect until two months after the end of the public health emergency.
Murphy has extended New Jersey’s state of emergency every month since the start of the pandemic. But the governor said he would not renew it after his latest 30-day extension expired, which he approved on Friday. As it stands, that would mean the moratorium on evictions would end in about three months.
But the end of the moratorium has not been finalized, according to a spokesperson for Murphy.
“The governor’s office is coordinating with the legislative branch the legislation that will determine the provisions and protocols put in place in the context of the COVID-19 public health emergency that will remain in effect after the end of this emergency,” Alyana said. Alfaro to Patch by email. “Details will be forthcoming.”
For the moment, the national moratorium is still evolving. The Centers for Disease Control previously extended their moratorium on evictions until June 30. Homeowners and groups of realtors have challenged the CDC’s policy in court.
A federal judge ruled on May 6 that moratoriums on evictions fell outside the jurisdiction of the CDC. The US Department of Justice was quick to say it would appeal the ruling, and the judge left the national moratorium in place while both sides file arguments.
The judge’s decision does not affect national or local orders preventing evictions or seizures.
Imminent eviction issues
QuoteWizard – a tool for navigating insurance and the cost of living – based its findings on CDC Plus Household Surveys. The data available measures the status of payment for housing, residents’ confidence in the next month’s payment, and the likelihood of occupants leaving their homes in two months due to eviction.
The company found that nearly 25% of people nationwide are worried about a foreclosure or eviction in the coming months. According to data, 7.1% of New Jersey residents face foreclosure – the 10th highest rate in the country.
Public health agencies, such as the CDC, have argued that evicting tenants amid a pandemic was not safe. But pandemic restrictions have also exacerbated economic woes in New Jersey and across.
New Jersey’s unemployment rate peaked at 16.4% in April 2020 after averaging 3.4% in 2019, according to the United States Bureau of Labor Statistics. The state’s unemployment rate stood at 7.7% last March.
The state is also facing a legal challenge from a group of homeowners in Gloucester and Cumberland counties. They argue that state warrants, particularly the option for tenants to withdraw money from their rental security deposits, are “unconstitutional.” The five owners represented each own one or two residential properties.
What residents can do
New Jerseyens who are behind on payments have certain options. The state opened the COVID-19 Phase II Emergency Rental Assistance Program on March 22 to applicants.
The program provides temporary assistance to low- and moderate-income households whose income has declined significantly, to people who are entitled to unemployment benefits and to those who have incurred significant costs as a result of the pandemic. Click here to apply.
Those facing an eviction or foreclosure should immediately contact an online housing counselor or call 1-800-NJ-HOUSE.
Murphy’s Executive Order in April 2020 allowed tenants to use their security deposits to cover rent during the COVID-19 crisis. Find other programs that can help you here through the Housing and Community Resources Division.
But QuoteWizard doesn’t see the problem of finding affordable housing getting better for renters or buyers anytime soon. President Joe Biden’s campaign promise of a $ 640 billion housing plan may not be enough, the report says.
“An increase in unemployment benefits, stimulus checks and a moratorium on evictions have kept many people at home during the height of the COVID-19 pandemic, but these programs appear to be winding down,” the report said. “President Joe Biden has proposed ato address an affordable housing shortage, but the question is whether that will be enough? “
Read the full report here.
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