Again, NJ legislators lack awareness of their own unintended consequences. From the Star Ledger:
A bill aimed at keeping thousands of Hurricane Sandy victims from entering into foreclosure for three years passed both houses of the state Legislature on Thursday.
The bill (S2577) would prevent lenders from foreclosing on homeowners waiting for funds through rebuilding grant programs run by the state.
It would also allow homeowners waiting for grant money to qualify for a three-year forbearance period, during which time they would not have to make mortgage payments.
State Assemblyman Gary Schaer (D-Passaic), one of the bill’s sponsors, said state “has not adequately or appropriately addressed the needs” of Sandy victims.
But a representative from the New Jersey Bankers Association told lawmakers at a hearing on the bill earlier this year that lenders “are getting forced to carry the burden the government has failed to do themselves.”