Effects of Foreclosures in New Jersey

The Congress passed a bill last July which was Housing and Economic Recovery Act of 2008 to oppose foreclosures. Neighborhood Stabilization Program was created because of the bill. It is currently under U.S. Department of Housing and Urban Development.

An amount of $3.9 billion will be given to municipalities and states greatly affected by foreclosures. Empty properties not only attract vandals, but can also be a burden in the neighborhood as home values will decrease.

Bergen County was lucky enough to have been provided an amount of over $2 million from the program and over $51 million for the state on the condition that HUD should approve all applications first.

States and municipalities will be given funds to purchase or renovate foreclosure properties. They can also provide property buyers with average or low income some money for down payments. 1/4 of the funds should be provided to families making less than 50% of the area’s average income which is $86,900 in Passaic and Bergen counties.

The program is indeed important for homeowners who are on the verge of filing for foreclosure as they will be aided and it will help stabilize the neighborhood as well.

Unfortunately, a certain expensive county will get $2 million only. It is going to be a small amount, considering that the place is not permitted to purchase homes that are 15% less of the property value.

According to Joseph Rutch, a director of Division of Community Development, the funds were provided to purchase homes in Hackensack, Garfield and Englewood. The said areas are considered to be at risk in terms of foreclosure.

Struggling families said residing in North Jersey has always been complicated due to high cost of living; it’s being too crowded and long commutes for those who do not have cars.