Several New Jersey Legislators have proposed a plan to assist homeowners with subprime loans, those loans typically written for those will bad credit and low incomes. State Senator Ronald Rice wants a 6 month moratorium on subprime loan defaults, a new loan fund to help people stay in their homes and to allow some homeowners who loose their homes to stay for awhile.
The legislation calls for:
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A 6 month moratorium to giver borrowers time to find a solution.
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Creation of a fund generated by a $2000 fee charged to lenders for each subprime foreclosure and $1 million from the NJ Housing and Mortgage Finance Agency (NJ HMFA). The money would provide loans and counseling to help people stay in their homes.
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Allowing those with subprime loans who loose their homes through foreclosure to remain as renters until the property is acquired by someone who wants to occupy it.
Will it work, will it be passed and signed into law? I think it'll be a tough sell. Questions that immediately come to mind are; will the fund produce enough money for real help, how many borrowers have worked to improve their credit since purchasing so they qualify for a new mortgage and will banks then become landlords, required to provide everything now mandated in the NJ Landlord Tenant Law.
I'm sure more questions will follow, but this is something to keep an eye on.
Laura Giannotta
Keller Williams Realty - Atlantic Shore
REALTOR-Associate®
e-PRO®, ABR®
609-384-6121
Laura@JerseyShoreViews.com
Representing New Jersey home buyers and sellers in southern Ocean County; Homes in Waretown, Homes in Barnegat, Homes in Manahawkin, Homes in Eagleswood, Homes in Tuckerton, Homes in Little Egg Harbor and Homes on Long Beach Island. You can also contact me about homes in northern Atlantic County; Homes in Galloway, Homes in Absecon, Homes in Mullica, Homes in Egg Harbor, Homes in Mizpah and Homes in Mays Landing.
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Hello Its Lynne Pope. I don't know how to respond to you yet on active rain without doing something wrong
If I put the comment on my own blog its not the right place. so I came over to your site and will leave the answer there...Yes the WCR is one and the same Women's council of real estate.
I liked this blog you wrote. In calif. they havent done what you all are trying to do. They talk and it all gets stalled. The state is in trouble in so many areas. They are talking about making a tax cut across the board for people who bought after Sept 2005. Last time they did it and people asked for it the door opened to go up and down with values and people who applied were sorry. This may be different.