Economic Stimulus in New Jersey?
The New Jersey Senate has given final approval to a package of bills, touted as an economic stimulus package for New Jersey and its struggling businesses. The proposals were called for in Governor Corzine's recent economic address to the Legislature. The Governor is expected to sign those bills quickly.
Two bills, amended in Senate Committee and approved yesterday, now head to the Assembly for approval.
The $25 million Mortgage Stabilization Program and the $15 million NJ Housing Assistance and Recovery Program will now be considered by the state Assembly.
The Mortgage Stabilization program will bring lenders and the state together to modify mortgages so they’re more affordable. It will also make available loans of up t $25,000 that would require repayment. According to the NJ Housing and Mortgage Finance Agency (HMFA), that will help between 1,500 and 2,500 homeowners on a first come, first served basis.
Under the NJ Housing Assistance and Recovery Program, certified community organizations will receive state funds to enter into lease-purchase agreements with struggling homeowners. The organizations will purchase the property and rent it back to the current homeowner at an affordable rate for up to three years. The property would then be sold back to the homeowners when they are financially ready.
These bills were to be financed by a $2,000 foreclosure charge. Initially the Governor wanted banks to pay a fee for each foreclosure. Instead, the legislation now calls for funding from a $650 million account that was set aside to pay down some of the state’s debt.
While, I’ll be the first to admit New Jersey’s got problems I’m not convinced we’re headed in the right direction.
Of particular concern is a delay in paying down the state debt. We already have the third highest debt to income ratio in the country.
Will these measures help New Jersey’s struggling homeowners? Only time will tell, but I’m not banking on it.
Keller Williams
Atlantic Shore
Laura Giannotta
609-384-6121
Homes for Sale in Waretown, Homes for Sale in Barnegat, Homes for Sale in Manahawkin, Homes for Sale in Eagleswood, Homes for Sale on Long Beach Island, Homes for Sale in Little Egg Harbor, Homes for Sale in Tuckerton and homes for sale in northern Atlantic County!
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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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Laura - there is only one source for government to obtain money. There is no Peter and Paul...
Hi Laura
This is a big undertaking for a state with very little (I'm originally from New Jersey). What ‘s the perception of the real estate profession?
Good luck and success
Lou Ludwig
We are layering debt on top of debt eventually the whole house of cards will fall. I am kind of with you on this
Laura, I know peter he has no money to lend to Paul, I hope this action brings some much needed relief to your area, I have an investor from NJ..that is crying poverty..
I think the goal is to stabilize the market, until such time that normal market conditions can take over. I agree that layering additional debt is dangerous, but what is the danger of doing nothing and allowing homes and prices to continue to fall?
Jay You're absolutely correct...this is what my Mom always used to say when we had to use a credit card...robbing Peter to pay Paul!
Lou Unfortunately NJAR has been silent on this.
Charlie Spending money set aside to pay down debt, IMHO, is setting a very bad example for the very people the state is trying to help.
Steve I really think the problems in NJ boil down to the cost of living. Income taxes, school taxes, county taxes, fire district taxes, business taxes and inheritance taxes...it doesn't even end when you die!
Rob The goal is laudable, I'm just not sure this is the best solution.
Patricia It really does say it all, thanks for coming by!