What Happened to the Old Mortgage Stabilization Program?
The Mortgage Stabilization Program signed into law in January 2009, once administered by the New Jersey Housing and Mortgage Finance Agency (then HMFA), was designed to help homeowners avoid foreclosure by providing a non-amortizing state “second” mortgage that matched the lender’s contribution, reducing a household’s monthly payment and bridging a gap. That program is no longer active in its original form, and most of its funding sources and mechanisms have been phased out. However it kind of morphed into the current Emergency Rescue Mortgage Assistance (ERMA) program, as noted below.
Over time, as the foreclosure crisis eased and new challenges (especially the COVID-19 pandemic) emerged, New Jersey shifted to newer assistance frameworks better suited for the current housing environment. In particular, the state now emphasizes Emergency Rescue Mortgage Assistance (ERMA) and other NJHMFA programs for stability and home retention.
Today’s Key Replacement Program for Mortgage Help - Emergency Rescue Mortgage Assistance (ERMA)
ERMA is the primary successor to older statewide foreclosure prevention efforts in New Jersey. It is funded via the Homeowner Assistance Fund (HAF) and is designed to help homeowners who have experienced a COVID-related financial hardship (after January 2020) and now struggle with mortgage arrears, property taxes, escrow shortages, and related housing costs.
Under ERMA, eligible homeowners may receive up to $75,000 in assistance to cover past-due mortgage payments, arrears, municipal tax liens, and up to four future mortgage payments in certain cases. Other benefits of the program is that it will keep families in their homes and keep the number of foreclosures homes in neighborhoods at a low level, which would help property values and reduce blight.
In 2024, NJHMFA expanded the program’s eligibility to include borrowers who had accepted HUD partial claims (for FHA, VA, or USDA mortgages), enabling these households to receive ERMA help even when a partial claim was previously used to forestall foreclosure.
To apply, homeowners must (1) own and occupy the property as their primary residence, (2) demonstrate a COVID-related financial hardship, and (3) have household income at or below 150 percent of the area median income (AMI) for their county.
Supporting documents will include mortgage statements, proof of income, asset statements, government IDs, signed tax authorization (IRS Form 4506-C), etc.
ERMA is not a permanent program, but as of mid-2025, the application portal opens periodically and funding is still active. Households should monitor official NJHMFA and ERMA websites or HUD-certified housing counseling agencies for updates.
To apply for ERMA, follow these steps.
- Confirm eligibility (homeowner, primary residence, income limit, COVID hardship).
- Gather required documents: mortgage statements, proof of income/benefits, IDs, asset disclosures, tax forms, etc.
- Visit the ERMA portal (when open) via NJ’s official site or contact NJHMFA for access detail with the link here https://www.nj.gov/dca/hmfa/erma/hub
- Work with a HUD-certified housing counselor (free service) for application support and alternatives. Contact a NJ HUD approved counseling agency.
- Await review and decision; if approved, funds will be applied to arrears, taxes, insurance, or future payments as directed by ERMA rules.
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