Although it seems like just a small time ago Jersey homes could be bought with very little money as a down payment, and at times, with nothing at all — this also went for much of the U.S. Those doors have long since been slammed shut, bolted and padlocked as the folks who believed they were getting their dream home or big money investment are now being set out to dry.
Foreclosures hit Jersey pretty soundly, not as bad as those in California or Florida, but some counties suffered worse than others. So after a year or so of the Fed trying to monkey with interest rates and had little avail, members of the House or Representatives tried to pass some measures to ease up on mortgage payment pressures.
New Jersey Property Tax Reduction Measures
Recently Representative Rush Holt from New Jersey sponsored a proposal to reduce property tax — something that New Jersey as a state has the highest in the nation. There are also provisions for homeowners to write down their house costs by depleting inventories. This is all done so, even if they cannot maintain the payments on their home, they won’t have to eat too much cost when selling their homes off. Also, it is making the glut of empty New Jersey homes for sale more apt to be bought up.
So far it’s passed the House’s vote, but the Senate will be another matter. It tends to be supported mostly by Democrats since it’s asking the government to step in to fund a high-priced proposal. Republicans in both House and Senate tend to think those who got into risky loans should be responsible getting themselves out. Realtors lean more toward government help as it will show a quicker result for their industry.
One of the two part measure asks for 15 billion in loans and grants — the price tag that this measure is asking to help states with for buying and redeveloping foreclosed homes that are abandoned. The other measure asks for a 300 billion in loan guarantees through FHA so homeowners at risk could refinance their mortgages. Another caveat to the bill is that with the new bill FHA loan limits will be in place, and with these limits will be a fixed interest loan option with those who pay 3% down.
The last part is intended for those who plan to buy to own the home while warding off home investors (flippers as they are sometimes known as). Bush intends to veto this bill believing the opposite of this intention is true.