Thursday, October 9, 2008

The Plan to Overcome Our Statewide Economic and Foreclosure Crisis

I would like to bring to the attention of the residents of my district that Monday’s hearing in Trenton on the foreclosure crisis was highly productive. As Chairman of the State Housing and Local Government Committee, our committee heard an initiative that would move to combat the economic and foreclosure crisis that is sweeping through our state. This initiative is born from the efforts of Reverend DeForest B. Soaries Jr., Chairman and CEO of First Baptist Community Development Corporation. The testimony to the initiative that he and his corporation manufactured was one that gained high bi-partisan support from the committee panel. This industrious approach not only battles foreclosure, but also helps to educate families in order to get them back on track in dealing with their financial issues.

The strategy created by Rev. Soaries’ corporation is called the Housing Assistance and Recovery Program (HARP). The HARP initiative is a family focused, holistic, market based approach strategy to prevent residential foreclosure. The HARP strategy is to purchase an owner occupied home that is in foreclosure or that is bank owned. After the HARP purchase, our staff works with the family that previously owned the home to recover the ownership of their home or to identify another affordable home for them to purchase. HARP works with the family to improve their credit scores, access employment opportunities, participate in family counseling for stress management and other family needs and works aggressively toward re-establishing home ownership within 12 – 24 months. Any homeowner who had equity in their home before they lost the home will recover the equity after re-purchasing through HARP!! In the case of a foreclosed rental property HARP staff works with the tenants to prevent their eviction and stabilize their permanent housing.

HARP is also working with elected officials to stabilize neighborhoods by purchasing vacant homes that have been abandoned after foreclosure. The foreclosure problem is not only a family problem but it is also a neighborhood and municipal problem. HARP is offering mayors and city councils throughout New Jersey our assistance in negotiating bulk purchase of unoccupied bank owned properties to convert into affordable housing for persons already displaced by foreclosure. We are currently working with elected municipal leaders in Orange, Irvington, Willingboro, Trenton, Franklin Township and Burlington City.

Click here to read the entire testimony regarding the HARP model and outline.

Once the federal and state governments decide on how the appropriate funding will be dispersed within our communities, we want to make SURE those needing the funding RECEIVE the funding. This initiative then, can most certainly be the vehicle to ensure those needing the help will get it. Rev. Soaries and I agree that it is of dire importance that organizations whose efforts mirror that of Rev. Soaries’ corporation and our government’s, partner up to be able to help people who need help in these sorts of capacities. With this issue at the forefront of my agenda, the Reverend and I have agreed that one of the first areas up for consideration is my district, District 22. This will enable us to sit down with the communities and figure out how we can collaborate to ensure that those needing help, DO get it. Thus, working with the mayors and councils, the church communities, and the realtors, my district will be the first in New Jersey to move in the direction of helping our communities to resolve financial crisis issues, which are issues that we unfortunately, face today. The issues of trying to make mortgage payments, provide food for one’s family, and in short, the bare necessities, are constricting the ‘home-y’ atmosphere of our communities.

In addition, one of the groups that testified before the committee brought it to our attention that there were many groups in our state that took advantage of innocent people in terms of putting them into deals that the groups KNEW the individuals could not afford. This is why I am asking anyone in my district that feels they were taken advantage of, to please, call my office. I will then, put you in contact with the appropriate authorities, and do everything within my power to bring about the necessary reprimands against those who have taken advantage of innocent people within my district. The number to my district office is (908) 561-5757. My email is Asmgreen@njleg.org.

Already, it has been brought to my attention, that there have been mortgage companies and realtors who have been practicing these sorts of unethical devices. Sadly, the majority of the time, the public is not aware of their rights or are not aware that there are people with the ability to follow through to ensure they are treated fairly. A prime example of this practice was relayed to me by phone. An individual in my district purchased a facility for $700,000 dollars. When the individual moved in, they later found out that there were NO city inspections were made for that property. Needless to say, the new owner faced immediate, COSTLY, problems with their newly acquired facility. I wonder how many other people in our communities have been taken advantage of in this way.

No comments: