Hi, we’re from the government and we’re here to help! A scary statement for New Jersey taxpayers.
While many problems require government assistance I’m not here to debate when and where state or federal action is needed.
Here in New Jersey, a panel of legislators has approved a measure to make mortgage lenders pay $2,000 before taking a homeowner with a sub prime mortgage into foreclosure.
Is it too little to late, or too much all together?
The proposal was part of a bill designed to slow a surge in foreclosures hitting the state because borrowers cannot afford their sub prime loans amid the wider economic damage inflicted by a dramatic tightening in credit availability.
The Fund would then be distributed first to non profit groups qualified to counsel people facing foreclosure. Any remaining money would be used to help homeowners facing foreclosure with emergency assistance loans.
Foreclosure filings by New Jersey mortgage lenders rose 22 percent from a year ago to over 44,000 in the January-to-August period, while the number of completed foreclosures rose to 1,862 in the second quarter from 1,117 in the first three months.
The bill was one of a number of items taken up recently by a group of NJ Legislative committees. Unfortunately this bill was introduced last spring, yet many questions remain unanswered.
· What are the administrative costs associated with this ambitious plan.
· How long will this program take to be up and running.
· Once a home is converted to affordable housing, will current affordable housing guidelines be enforced.
· Perhaps most important, how will this affect those home buyers now coming into the market…higher mortgage costs?
I don’t have the answers to the difficult questions facing our nation.
Bit I do have some advice for the New Jersey Legislature...
Work on economy in government..lighten our state and local tax load. You’ll be suprised at the results.
We might be able to afford to pay our mortgages!
Keller Williams Atlantic Shore, Laura Giannotta 609-384-6121