N.J. Lawmakers Approve Mortgage Foreclosure Aid

Legislation to help struggling homeowners refinance their houses or continue to live there as tenants while they regroup financially has been approved in New Jersey.

The Mortgage Stabilization and Relief Act cleared the Assembly and Senate Monday.

It now heads to Gov. Jon S. Corzine, who is expected to quickly sign it into law.

The measure dedicates $25 million to mortgage stabilization by providing loans of up to $25,000 to homeowners and lenders willing to refinance a first mortgage in danger of foreclosure.

The bill also creates a $15 million housing recovery program. It helps nonprofits buy dwellings from homeowners who cannot afford their mortgages, then lease the homes back for up to seven years while the homeowner recovers financially.

Corzine recently signed legislation allocating additional fundsto provide legal services to homeowners facing foreclosure.