Restart Home Preservation
If you have been contacted by The Housing Authority of the City of Perth Amboy (HACPA) about the ReStart Program that means your mortgage has been purchased by National Community Capital (NCC), a subsidiary of New Jersey Community Capital (NJCC) and you are eligible to participate in the program explained below. Most importantly there will be NO COST to you to participate in this program or to modify your mortgage.
The ReStart Home Preservation Program has been created to help drive the recovery of communities and households hit hardest by the foreclosure crisis. ReStart is a note purchase program that buys troubled mortgages on properties facing foreclosure. The loans are purchased at a discount with the goal to assist struggling homeowners in keeping their homes whenever it is financially possible. ReStart also helps to stabilize neighborhoods that have been impacted by the mortgage crisis. ReStart addresses several key issues affecting the economic stability of both homeowners and neighborhoods:
Homeowners whose mortgage balance is greater than the current market value of their home may be eligible to receive mortgage principal debt forgiveness. This is accomplished by reducing mortgage principal to 100% of current market value. This will assist them to attain affordability while building equity thus restoring the true benefits of homeownership. Homeowners will be screened and qualified for modifications targeting a monthly front-end mortgage payment between 31-35% of their gross monthly income.
The ReStart Program recognizes that long-term stability requires a holistic approach to debt management. ReStart utilizes a trial modification period of up to twelve months to assist the homeowner in reducing non-mortgage debt. The lowering of this back-end debt is supported through individualized budgeting and debt management plans provided by ReStart Specialists and/or an approved debt management program providers. To receive a permanent modification under the ReStart Program, homeowners must reduce their debt to income ratios to no greater than 55% of their gross monthly income.
The main goal of the ReStart Program is to assist homeowners in achieving long term financial stability while remaining in their homes. However, not every homeowner will want to or be able to achieve the affordability ratios necessary to preserve ownership. These homeowners may choose to execute a deed-in-lieu of foreclosure. In this event, the ReStart Specialist will work with the homeowners to assist in their transition to alternative housing. Most homeowners who execute a deed-in-lieu of foreclosure will be eligible for transition assistance funding.
All properties that are acquired by the ReStart Program will be used in a way that provides overall neighborhood stability. ReStart will work with local non-profits to ensure that the houses are restored to the affordable rental or sales market. This will alleviate the problem of abandoned and neglected properties while increasing affordable housing opportunities within the community.
RESTART NON-PROFIT MEMBERSHIP PARTNERS
New Jersey Community Capital (NJCC) is a non-profit Community Development Financial Institution (CDFI) that provides innovative financing and technical assistance to support the preservation and development of affordable housing and sustainable community development ventures that increase jobs, improve education and strengthen neighborhoods. NJCC was founded in 1987.
National Community Capital (NCC) is a wholly-owned subsidiary of New Jersey Community Capital. It is designed to reduce foreclosures and stabilize housing markets at a national scale. NCC purchases pools of non-performing mortgages in target markets and reduces the outstanding principal mortgage loan amounts to make the homeowner(s)’ housing payments affordable. NCC's strategies help homeowners avoid foreclosure, stabilize families and neighborhoods and prevent properties from being a strain on communities.
The Housing Authority of the City of Perth Amboy (HACPA) administers 360 public housing units, 1110 section 8 rental subsidies, a family self-sufficiency program; and is a HUD certified Housing Counseling Agency offering first time homebuyer, foreclosure prevention and mitigation, and rental counseling throughout Middlesex County. Additionally, the Authority oversees the operations of the Sayreville, Keansburg and Highlands Housing Authorities. The Authority has been contracted by NJCC to engage the homeowners eligible for ReStart in Middlesex and Union counties to work towards an achievable solution for their mortgage distress.