New Jersey Residents Receive Federal Debt Relief Funds

Homeowners in New Jersey have been awarded $112 million in federal funds aimed at helping the state provide more debt relief options to consumers having trouble paying their mortgages. The award is expected to reduce the state's foreclosure rate.

Through the New Jersey Home Keeper Program, unemployed and those with insufficient work income will be allowed to apply for state aid, beginning in 2011. Under the program, homeowners can reduce their risk of foreclosure by securing zero-percent interest rates and deferred-payment mortgage loans. Residents will also have access to employment assistance and job training programs under the initiative.

"New Jersey homeowners have been hard hit by the national foreclosure crisis," Governor Chris Christie said. "Otherwise hard-working individuals who qualify deserve this support to get through the remainder of this recession while keeping their homes and family life intact."

Between 2,500 and 4,000 homeowners are expected to receive aid through the program.

Other states across the U.S. have recently introduced measures to help consumers stave of foreclosure, reduce debt and secure employment. Consumer credit counselors have also seen a rise in the number of Americans requesting financial advice.