With dire predictions that more than 60,000 New Jerseyans could face foreclosure this year, state officials rolled out a program Friday tapping counselors and mediators to help residents face the news and take steps to prevent losing their homes.

“It is an important step for the people of the state of New Jersey,” Gov. Jon Corzine said at a news conference. “I think it will facilitate more people staying in their homes, make this process more responsible and balanced between the borrower and the lenders.”

State officials said the program – a first in the country – could serve as a national model as foreclosures continue to flood the courts.

Attorney General Anne Milgram said subprime mortgages – loans advanced to people who don’t qualify for mainstream mortgages, usually because they have poor credit – account for a disproportionate number of foreclosures.

In the third quarter of last year, only 9 percent of mortgages were subprime but they accounted for half the foreclosures, she said. State officials anticipate some 16,000 people will take advantage of the program by calling 1 (888) 989-5277. The hotline is staffed 8 a.m. to 6 p.m. weekdays.

“We urge all homeowners facing foreclosure to call, because the difference between calling and not calling could be the difference between keeping your home and losing it,” Milgram said.

Because only 5 percent of homeowners facing foreclosure ever ask for professional assistance, state officials plan to reach out, Corzine said. Pamphlets explaining the program will be sent to homeowners three times during the foreclosure process: when the first complaint is filed; 60 days later, and again when the lender acts to seize the property. Homeowners are eligible to participate in the program until the time of a sheriff’s sale.

(Source: NJ Star Ledger)