Is New Jersey Homekeeper Helping the Unemployed Save Their Homes

New Jersey Homekeeper is yet another Government program that's failing to come through on promises to help burdened homeowners. Since the program was announced in 2011, the designated underwriter, New Jersey Housing and Mortgage Finance Agency (NJHMFA) seems to have been ill-equipped and unprepared to administer the program and distribute the funds. How can the State make such a big announcement of intended help for homeowners, and yet do very little in preparation for same? This happens so often. Since the real estate and mortgage markets took a dive, there have been countless programs announced to aid struggling homeowners. But very few have accomplished the targeted goals. Why don't they resolve the details and figure out the parts prior to making the announcement?

Is It That Difficult Finding Unemployed Homeowners to Help?

The results of the 3rd quarter report available for the program show a mere 2 homeowners were approved. Both of these 2 homeowners amazingly fit the same demographic - same race, same county, same sex, similar mortgage situation, and neither was behind on their mortgage. This is not what most would imagine as a struggling homeowner. But even more horrific was the number of denials. On this report, 193 homeowners were denied. That means only 1% of the applicants were approved. Before applying for the program, homeowners are advised of the criteria they must meet in order to be eligible. Yet there must be a very long list of criteria and requirements they are not sharing. Otherwise it does not seem plausible that so many would be denied. During a time of such distress for a homeowner, they should do more due diligence up front and not have a homeowner submit to such a comprehensive, burdensome application process when they only have a 1% chance of approval. The program has a duty to be forthcoming about underwr iting criteria.

Extreme Wait Times for NJHMFA Underwriting

For anyone applying to New Jersey Homekeeper, expect a long wait time for any response. Expect a 6 month wait and during this time, you won't hear anything from the program. After waiting an inordinate amount of time, applicants can simply expect a denial letter in the mail. The applicant can't really be certain the application was ever received because they do not communicate with the homeowner.

There are a glutton of sites online that are alerting homeowners about the program, but seemingly no one is reporting back to homeowners about what is really happening. Meetings are being held all over the state where they preach about this useless program. Given the early history of Homekeeper, those who apply have no reason to be optimistic. And that is very important when someone's home is at stake. Homeowners should not be led astray. Undoubtedly, people are applying and believe this will be the solution to their problems. This will not materialize for the overwhelming majority.

So Who Stands the Best Chance of Getting Approved?

Based on the (2) quarterly reports made available by the program, homeowners who fit the following criteria are more likely to be approved: (1) Only recently filed for unemployment; (2) Not underwater; (3) Home appraises well according to Zillow; (4) No more than 2 to 3 months delinquent; (5) No other major credit problems.

Another important requirement of the program is that the homeowner's current lender must agree to participate with Homekeeper. If for whatever reason the homeowner's lender refuses to cooperate, the application will be denied.