Governor Corzine of New Jersey Inks Measure to Prevent Foreclosures

February 16th, 2009 | Tags: Foreclosure Crisis

Governor Jon S. Corzine of New Jersey inked legislation on Friday 9th January 2009 that would go a long way in preventing foreclosures – it is hoped.

The bills are inclusive of a package of laws that had been suggested by Corzie in October 2008 to help the foreclosure victims of New Jersey. Corzine had referred to the ongoing foreclosure crisis as “the single worst economic challenge this country has faced in the last 150 years, except the Depression. … We are proactively putting into place actions on housing stabilization that are unequaled across the country as far as I could see.”

At the time of the signing, some of the leading advocates for housing were beside Corzine. According to its term $25 million has been allotted for those house owners who have the option of refinancing for the first time. $15 million is separately set aside for those who have been foreclosed but will have the alternative of continuing to stay in the houses as tenants. This will give them time to regain their financial balances so as to be able to save and buy back the house. There were other measures also.

Bonnie Watson Coleman (Democrat), the leader of the majority in the House, said, “New Jersey’s deepening mortgage crisis makes it imperative that we provide direct assistance to ensure families can stay in their homes and out of foreclosure.”

The legislation was applauded by Phyllis Salowe-Kaye of the Citizen Action advocacy body but she added that there was much more required to be done as it is apprehended that the housing crisis will worsen this year. She said that foreclosures are not only affecting individual families but also bringing down a curse on entire neighbourhoods.

The Governor admitted that the money was insufficient to cover all the angles of the problems. But he is optimistic that with more federal funds coming in a greater nmber of people will be benefited. He said, “We’re putting about $60 million into this. This is a much bigger problem”.

Corzine presided over the kicking off of a foreclosure mediation operation supported by the state. It was a path finding operation in Middlesex County that is now being emulated across the entire state.

Anne Milgram, the Attorney General said is hoped that 16,600 house owners of New Jersey will take part in the mediation project. There is the apprehension that a staggering number of 60,000 people will undergo foreclosures in this year.