Turning Foreclosed Homes into "Affordable Housing"

[chanel]

Two senior Democrats today outlined a measure to let municipalities and a state corporation buy foreclosed homes and offer them to low- and moderate-income residents in an effort to increase the supply of affordable housing and reduce the number of vacant houses.

The bill (S1566), which was introduced last week by Lesniak and state Sen. Barbara Buono (D-Middlesex), would form the New Jersey Foreclosure Relief Corporation — with a five-year life span — to buy foreclosed homes.

Under the proposal, municipalities where the houses are situated would have 45 days to decide whether to buy the houses through the state’s $268 million affordable housing trust fund. If they did, they would get a two-for-one credit against their affordable housing obligations.

Part of the financing would also be provided by $75.5 million the state is expected to get from a federal and state settlement over an investigation into allegedly abusive foreclosure practices by the nation’s largest mortgage providers.

N.J. Dems outline proposal allowing towns to turn foreclosed homes into affordable housing | NJ.com

This just reeks of socialism and the potential for enormous corruption. Comments?

 

[chanel]

 

[gallantwarrior]

Affordable for whom? Certainly not the taxpayers who will be footing the bill.

 

[FA_Q2]

I am sure the banks are just eating losses on this too.....

 

[editec]

Two senior Democrats today outlined a measure to let municipalities and a state corporation buy foreclosed homes and offer them to low- and moderate-income residents in an effort to increase the supply of affordable housing and reduce the number of vacant houses.

The bill (S1566), which was introduced last week by Lesniak and state Sen. Barbara Buono (D-Middlesex), would form the New Jersey Foreclosure Relief Corporation — with a five-year life span — to buy foreclosed homes.

Under the proposal, municipalities where the houses are situated would have 45 days to decide whether to buy the houses through the state’s $268 million affordable housing trust fund. If they did, they would get a two-for-one credit against their affordable housing obligations.

Part of the financing would also be provided by $75.5 million the state is expected to get from a federal and state settlement over an investigation into allegedly abusive foreclosure practices by the nation’s largest mortgage providers.

N.J. Dems outline proposal allowing towns to turn foreclosed homes into affordable housing | NJ.com

This just reeks of socialism and the potential for enormous corruption. Comments?

I certainly agree that the POTENTIAL FOR CORRUPTION is there.

Socialism by definition isn't corruption (neither incidently, can capitalism be called corruption) but social programs can certainly BE corrupted and OFTEN are, too.

 

[Claudette]

Like we taxpayers aren't footing the bill for enough bs in this Country. Jeeze.

 

[FA_Q2]

Yes, but this one reeks of corruption. They are purchasing foreclosed homes - that's homes that are going to be bank owned for the most part. Banks don't like those homes because they are generally in disrepair and upside down. I can see them making out like bandits by giving those homes over to the government as the government never does anything on the cheap. I guess we will see though. There really is not a better source for section houses though if you are going to run a program like that though....

 

[zeke]

Yes sir ree all them empty foreclosed houses sure are great. Why I bet that when neighborhoods have 50% or more of the houses empty and declining, I guess you repubs think that is great for property values. And the more property values decline the greater the cheerleading from the Repubs. You know why they cheer? Cause most states fund education through property taxes. And less property taxes means more cuts in education and that seems to be what RZepubs want. A less educated, dumber population.

Course the more stupid you are, the more likely to vote Republican. I see your strategy now.

 

[DiamondDave]

Government does not own the homes... the lending institutions do... so in no way should they be forced to participate...

And NOBODY IS OWED A GODDAMN PLACE TO LIVE>.. that is a PERSONAL RESPONSIBILITY

 

[Full-Auto]

Yes sir ree all them empty foreclosed houses sure are great. Why I bet that when neighborhoods have 50% or more of the houses empty and declining, I guess you repubs think that is great for property values. And the more property values decline the greater the cheerleading from the Repubs. You know why they cheer? Cause most states fund education through property taxes. And less property taxes means more cuts in education and that seems to be what RZepubs want. A less educated, dumber population.

Course the more stupid you are, the more likely to vote Republican. I see your strategy now.

Hey stupid it is democrats prolonging the foreclosure sector.

 

[Katzndogz]

The government giveth and the government taketh away. Much will be given to those who love the tyrant.

 

[zeke]

Government does not own the homes... the lending institutions do... so in no way should they be forced to participate...

Wtf makes you think the lenders holding these homes don't want to get rid of them?
They are a non perfoming drag on the balance sheet.

You ever been to a sherriff sale. Guess what, lenders are there selling foreclosed homes.
Sometimes they even give them away to keep from having to repair them.

And I must admit it is quaint to have homeless people running around the neighborhood.
You have many homeless where you live? Or you all just put em in jail. Lots of homeless vets hitting the streets. Why don't you trash out a homeless vet with PTSD. That would make you feel good.

Hey stupid it is democrats prolonging the foreclosure sector

Yea right. Stupid comments like that make it hard to respond. I yield to your ignorance.

Guess you all don't own a home? If you do, how much more value you want to lose?

 

[zeke]

But wait. come back and tell me how it is the "personal responsibility" of a homeless vet with PTSD to drag him/herself up by the bootstraps and make something of themselves. With no help from the guvmint.

Come on, show your true colors of what you think of American service members who have hit on hard times from repeated deployment and unending risk as well as terrible loss.

 

[DiamondDave]

Government does not own the homes... the lending institutions do... so in no way should they be forced to participate...

Wtf makes you think the lenders holding these homes don't want to get rid of them?
They are a non perfoming drag on the balance sheet.

You ever been to a sherriff sale. Guess what, lenders are there selling foreclosed homes.
Sometimes they even give them away to keep from having to repair them.

And I must admit it is quaint to have homeless people running around the neighborhood.
You have many homeless where you live? Or you all just put em in jail. Lots of homeless vets hitting the streets. Why don't you trash out a homeless vet with PTSD. That would make you feel good.

Hey stupid it is democrats prolonging the foreclosure sector

Yea right. Stupid comments like that make it hard to respond. I yield to your ignorance.

Guess you all don't own a home? If you do, how much more value you want to lose?

What makes you think that the government is responsible for bailing out the lenders or is responsible for giving someone a home??

 

[FireFly]

This plan is just another bailout for the banks & GSEs.

Leave this to the private sector. I just bought 4 of these foreclosed homes & already have 3 rented. I am rehabbing the 4th & will have it rented in a couple of months.

House prices are well below the 100 year average percent of income. there is no need for government involvement. The mortgage resets ended & foreclosures will end by the middle of this year. After 2013 houses will start to rise in value.

 

[CrusaderFrank]

Fannie and Freddie need to be liquidated.

 

[8537]

The banks have homes they'd prefer to get rid of.
The state has millions of people in need of affordable housing
The neighbors have foreclosed properties around them driving down their own property values.
The economy already has a significant oversupply of housing.

This solution addresses all four of those problems without new spending. Therefore, conservatives must oppose it.

 

[CrusaderFrank]

The banks have homes they'd prefer to get rid of.
The state has millions of people in need of affordable housing
The neighbors have foreclosed properties around them driving down their own property values.
The economy already has a significant oversupply of housing.

This solution addresses all four of those problems without new spending. Therefore, conservatives must oppose it.

Yes, government did such a great job setting underwriting standards under F/F that they should double down and now convert the home to "Affordable housing" What could possibly go wrong?

Why let the market set the prices?

Gubbamint nose best

This is why I say that the American Left is economically to the left of real Communists in China and Vietnam who have abandoned the very notion that government control is good or desirable and now understand that a government run economy means failure and poverty.

I'm trying to remember why I had any respect for your opinion at all and I''ll be damned if I can think of any reason.

 

[Oddball]

The banks have homes they'd prefer to get rid of.
The state has millions of people in need of affordable housing
The neighbors have foreclosed properties around them driving down their own property values.
The economy already has a significant oversupply of housing.

This solution addresses all four of those problems without new spending. Therefore, conservatives must oppose it.

And we all know that nothing sends home values skyrocketing better than moving a bunch of Section 8s into the neighborhood!

 

[grunt11b]

Two senior Democrats today outlined a measure to let municipalities and a state corporation buy foreclosed homes and offer them to low- and moderate-income residents in an effort to increase the supply of affordable housing and reduce the number of vacant houses.

The bill (S1566), which was introduced last week by Lesniak and state Sen. Barbara Buono (D-Middlesex), would form the New Jersey Foreclosure Relief Corporation — with a five-year life span — to buy foreclosed homes.

Under the proposal, municipalities where the houses are situated would have 45 days to decide whether to buy the houses through the state’s $268 million affordable housing trust fund. If they did, they would get a two-for-one credit against their affordable housing obligations.

Part of the financing would also be provided by $75.5 million the state is expected to get from a federal and state settlement over an investigation into allegedly abusive foreclosure practices by the nation’s largest mortgage providers.

N.J. Dems outline proposal allowing towns to turn foreclosed homes into affordable housing | NJ.com

This just reeks of socialism and the potential for enormous corruption. Comments?

To the current regime, it is more important for someone who was brought up on welfare and never had a job to have that nice house, while letting the person who worked so hard to try and keep it go live a shelter. They like to call it fairness, but in reality they are just trying to piss us off enough for us to go off. Dont fall for it, just vote conservative in 2012 and everything will be fine.