On September 15, New Jersey Governor Jon Corzine signed into law the "Save New Jersey Homes Act of 2008." As reported in the June 27, 2008 edition of Corporate and Financial Weekly Digest, the legislation applies to certain hybrid mortgage loans that have an initial fixed-rate interest period of five years or less followed by an adjustable-rate interest period and that are secured by owner-occupied properties. The law requires creditors to notify eligible mortgagors prior to the first interest rate reset date, and prior to the commencement of foreclosure proceedings, of the mortgagor's rights under the law. After receipt of the notice, if the mortgagor certifies he or she is unable to make monthly payments at the fully-indexed mortgage rate, the mortgagor is entitled to an extension of three years, during which the interest rate payable on the mortgage loan is not allowed to increase above the introductory rate. A mortgagor forfeits the benefits of the law if the modified mortgage loan becomes 60 days or more delinquent, and all deferred interest must be repaid when the mortgage loan is ultimately repaid.

http://www.njleg.state.nj.us/2008/Bills/A3000/2780_R2.PDF